I am a Consultant at one company. We have sent that company a PF notification stating that the new wage ceiling for PF is Rs. 15,000 from September 2014. However, they told me that the term "Basic" is not used in that notification, so PF is not applied to the Gross salary of Rs. 15,000 even though the basic is Rs. 8,000. Does anyone have a solution regarding this matter?
From India, Ahmedabad
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1From India, Ahmedabad
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The definition of wages in PF is basic and DA, and other components are not included. This is being debated in the Supreme Court right now, which is a different matter.
Since the definition talks about basic and DA, the revised wage limit will also automatically be for basic and DA. Your employees cannot make their own interpretations. If required, you can write to the Commissioner of PF and get a clarification. However, the revised law is very clear that the revision in the limit applies to basic and DA only.
From India, Mumbai
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Since the definition talks about basic and DA, the revised wage limit will also automatically be for basic and DA. Your employees cannot make their own interpretations. If required, you can write to the Commissioner of PF and get a clarification. However, the revised law is very clear that the revision in the limit applies to basic and DA only.
From India, Mumbai
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PF Notification for enhancement of wage ceiling & Pension wef 1-Sep-14.pdf