Can anyone provide the new EPFO circular regarding Calculations of monthly %age on Gross Salary? Which Allowance can be excluded while calculating the monthly PF.
From India
From India
As per law you should pay contribution on the gross salary. You can restrict it to a salary of Rs 15000 but you should take all allowances. House rent allowance, if generally paid to all employees irrespective of whether they have taken a house on rent or not, shall also be included. At the same time HRA paid outside the salary shall be omitted.
Since the capping of Rs 15000 is available, the employer can very easily make the contribution on that amount without further restructuring the salary. I don't think that any employee will get a salary less than Rs 15000 or any employer will be able to hire resource at a cost less than Rs 15000 per month.
From India, Kannur
4246Since the capping of Rs 15000 is available, the employer can very easily make the contribution on that amount without further restructuring the salary. I don't think that any employee will get a salary less than Rs 15000 or any employer will be able to hire resource at a cost less than Rs 15000 per month.
From India, Kannur
Only allowance that can be excluded are those specified in the act, mainly HRA
for all other allowance, they can be excluded only if they are paid directly for reimbursement of expenses incurred by the employee and not paid to all employees, but only to select few that are actually affected by the special circumstances.
Please read the judgement of the court in order to decide what leeway you have.
From India, Mumbai
for all other allowance, they can be excluded only if they are paid directly for reimbursement of expenses incurred by the employee and not paid to all employees, but only to select few that are actually affected by the special circumstances.
Please read the judgement of the court in order to decide what leeway you have.
From India, Mumbai
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