I am working with a manufacturing company of glass as an HR manager. Every company has different norms for HR policy. They are providing 40% of the gross salary as basic because PF is calculated on the basic salary. However, as I know, the basic salary is typically 60% of the gross. Please advise me on what percentage should be the basic salary and how it should be calculated within the current norms.
Warm Regards,
Kavita Pal
From India, Ghaziabad
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Warm Regards,
Kavita Pal
From India, Ghaziabad
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Yes, basic wages should be 60% of the gross salary, but the government-fixed minimum wages should be the basic wages for which EPF has to be contributed. In other words, the basic wages should not be less than the minimum wages announced for the particular zone and industry type.
Thank you.
From India, Madurai
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15Thank you.
From India, Madurai
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Since you cannot reduce the existing Basic, you can increase other component with Basic stagnant during increment which will decrease the % of Basic from Gross Salary
From India, Ahmadabad
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From India, Ahmadabad
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As of now, there is no change in PF except for the ceiling increase to accommodate more employees. Please don't be in a hurry until the Supreme Court decides on the splitting of minimum wages. Please note that as per Sec 2(h) of the Minimum Wages Act 1948, HRA is included as part of minimum wages. The Government of Punjab has notified that the minimum wages fixed by the Government should be the basic rate of wages.
Regards,
N. Nataraajhan
Sakthi Management Services
From India, Bangalore
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Regards,
N. Nataraajhan
Sakthi Management Services
From India, Bangalore
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Salary Sheet & PF PT Calculation & Challan.xls