Good inputs. Thanks to all members. I want one clarification related to this discussion - whether PF should be deducted on monthly incentive payments (which are not fixed, calculated based on a particular department's and overall company's performance in the particular month, vary month on month, with conditions of deduction of full incentive if leave exceeds a certain number of days, etc.). When the following are complied pucca:-
1. Minimum wages/DA applicable complied.
2. The balance portion of the salary is divided into other allowances such as HRA, TA, WA, CCA, etc., with PF deducted from the basic.
Siva/Chennai/9176640747
From India, Madras
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1. Minimum wages/DA applicable complied.
2. The balance portion of the salary is divided into other allowances such as HRA, TA, WA, CCA, etc., with PF deducted from the basic.
Siva/Chennai/9176640747
From India, Madras
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Dear Sirs,
Was there any response from the PF Commissioner (Compliance) to Mr. H.L. Kumar's letter? It seems that the controversy still continues. Furthermore, some states split the minimum wages themselves into two parts, namely Basic and Dearness Allowance. In such cases, is it correct to account only the basic wages for the calculation of PF deductions?
Thank you all in advance for clearing my doubts above.
Regards,
S.S. Kumar
From India, Coimbatore
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Was there any response from the PF Commissioner (Compliance) to Mr. H.L. Kumar's letter? It seems that the controversy still continues. Furthermore, some states split the minimum wages themselves into two parts, namely Basic and Dearness Allowance. In such cases, is it correct to account only the basic wages for the calculation of PF deductions?
Thank you all in advance for clearing my doubts above.
Regards,
S.S. Kumar
From India, Coimbatore
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Dear sir,
The letter from Mr. Kumar itself serves as proof that the matter is sub judice, and the views of various high courts also vary from time to time. In my opinion, we should adhere to the circular or directive from EPFO as provided by Mr. Alam initially, rather than initiating proceedings under section 7A ourselves.
Thanks and regards,
Sumit Kumar Saxena
From India, Ghaziabad
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256The letter from Mr. Kumar itself serves as proof that the matter is sub judice, and the views of various high courts also vary from time to time. In my opinion, we should adhere to the circular or directive from EPFO as provided by Mr. Alam initially, rather than initiating proceedings under section 7A ourselves.
Thanks and regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Hi, I have a clarification. My company is an ITES company registered under the West Bengal Shops and Establishment Act, 1963. It's a private limited company. My basic salary is 4500, HRA is 1080, city allowance is 1260, and conveyance allowance is 1260.
I have a clarification on how the salary is calculated. I do not understand, sir. Please help me.
From India, Kolkata
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I have a clarification on how the salary is calculated. I do not understand, sir. Please help me.
From India, Kolkata
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sir actually i want to know what is the calculation of percentage of hra,city allowence and conveyence allowence on the basic salary
From India, Kolkata
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From India, Kolkata
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Dear Aslam,
As far as my limited knowledge goes, I can only suggest that the basic salary should be set at 50%-60% of the gross salary. However, it should not fall below the minimum wage of the state. The House Rent Allowance (HRA) should account for 30%-40% of the basic salary. Conveyance allowance should be a minimum of Rs. 800, any amount exceeding this should be taxable. Similarly, the medical allowance should be at least Rs. 1250, with any surplus being taxable. The remaining amount should be categorized under other allowances.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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As far as my limited knowledge goes, I can only suggest that the basic salary should be set at 50%-60% of the gross salary. However, it should not fall below the minimum wage of the state. The House Rent Allowance (HRA) should account for 30%-40% of the basic salary. Conveyance allowance should be a minimum of Rs. 800, any amount exceeding this should be taxable. Similarly, the medical allowance should be at least Rs. 1250, with any surplus being taxable. The remaining amount should be categorized under other allowances.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Dear HR Friends,
It was informed earlier that the EPF Circular of 30th November 2012 has been kept in abeyance. The abeyance circular is attached in the thread "Legal Compliances Required for the Staffing Industry" for reference.
Rajanassociates
From India, Bangalore
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It was informed earlier that the EPF Circular of 30th November 2012 has been kept in abeyance. The abeyance circular is attached in the thread "Legal Compliances Required for the Staffing Industry" for reference.
Rajanassociates
From India, Bangalore
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sir i would like to know that from when it was made mandatory by the government that the basic salary cannot be less than the minimum wages of the state.please specify the date if possible.
From India, Kolkata
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From India, Kolkata
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Dear all,
Greetings for the day,
Earlier, Jawed Saab posted a clarification not to split the minimum wages for the EPF purpose. Many of us, including myself, personally agreed on the same. However, in the same matter, a scanned copy of the judgment by Sh. Balaji was posted, which is also true. Subsequently, a clarification from the EPF department was also received, which is enclosed for reference. In this regard, I spoke to an EPF department official who mentioned that the matter is sub judice in the Honorable Supreme Court of India, and that we should let them decide.
My question is to all my seniors and fellow colleagues: should we split the same (minimum wage) or not?
Dear Jawed Saab, Kahan hain AAP? Bhool gaye kya.
Thanks and Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Greetings for the day,
Earlier, Jawed Saab posted a clarification not to split the minimum wages for the EPF purpose. Many of us, including myself, personally agreed on the same. However, in the same matter, a scanned copy of the judgment by Sh. Balaji was posted, which is also true. Subsequently, a clarification from the EPF department was also received, which is enclosed for reference. In this regard, I spoke to an EPF department official who mentioned that the matter is sub judice in the Honorable Supreme Court of India, and that we should let them decide.
My question is to all my seniors and fellow colleagues: should we split the same (minimum wage) or not?
Dear Jawed Saab, Kahan hain AAP? Bhool gaye kya.
Thanks and Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Splitting of Minimum Wages for the purpose of PF contribution not permissible.doc x
EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf