Hello all, good day, everybody. I am quite confused about PF deductions. I have read many posts on the internet, and some claim that PF deductions have to be done for BASIC + DA (12%), while some say that PF deductions have to be done only on BASIC (12%).
Which is exactly right?
I looked into the PF rules PDF posted on the internet, which clearly states that it should be BASIC + DA (12%). Our company follows the same practice. However, employees still feel that their take-home pay is too low.
I recently reviewed another company's salary slip, which was as follows:
BASIC: 6700
HRA: 4020
CCA: 2208
Monthly bonus: 292
Gross: 13220
Deductions:
PF: 804
ESI: 232
Professional Tax: 183
I never see something like DA. Is this the right deduction? In my company, there is BASIC, DA, and HRA alone. So, we are deducting 12% from BASIC + DA. Please let me know what the workout or trick that can be done is. Our company is in Chennai. Please advise.
Thanks for your time.
From India, Chennai
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Which is exactly right?
I looked into the PF rules PDF posted on the internet, which clearly states that it should be BASIC + DA (12%). Our company follows the same practice. However, employees still feel that their take-home pay is too low.
I recently reviewed another company's salary slip, which was as follows:
BASIC: 6700
HRA: 4020
CCA: 2208
Monthly bonus: 292
Gross: 13220
Deductions:
PF: 804
ESI: 232
Professional Tax: 183
I never see something like DA. Is this the right deduction? In my company, there is BASIC, DA, and HRA alone. So, we are deducting 12% from BASIC + DA. Please let me know what the workout or trick that can be done is. Our company is in Chennai. Please advise.
Thanks for your time.
From India, Chennai
Acknowledge(0)Amend(0)
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PF CHALLAN & CALCULATION SHEET.xls
Rules for Statutory Deductions Exemptions Perquisites-Pay roll.doc
Employees' PF Appellate Tribunal Procedure Rules 1997.pdf