Hi, At present in our company, the PF is calculated on BASIC (50%) + DA (34%), totaling 84% on gross. Now, we would like to change the PF calculation to only on basic, i.e., 50%, and adjust the pay scale structure. Please advise on how to proceed. Can we change our pay scale structure in the middle of the year, or do we need to wait until the next financial year? I kindly request your assistance in resolving this matter.
Regards,
Sreedevi
From India, Hyderabad
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Regards,
Sreedevi
From India, Hyderabad
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You cannot reduce the PF qualifying salary (the salary on which you contribute PF). However, if you have been contributing to the PF on an amount above Rs. 15,000, you can bring it down to Rs. 15,000. Below this, you cannot reduce the contributions.
From India, Kannur
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4526From India, Kannur
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You cannot reduce the wages or salaries of employees for the purpose of computing PF contributions once you have started paying higher wages.
Section 12 of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952
In this connection, please also refer to Section 12 of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952.
From India, Aizawl
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Section 12 of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952
In this connection, please also refer to Section 12 of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952.
From India, Aizawl
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PF CHALLAN & CALCULATION SHEET.xls