Hi, At present in our company, the PF is calculated on BASIC (50%) + DA (34%) total of 84% on gross.
Now, we would like to change the PF calculation only on basic i.e. 50% and would like to change the pay scale structure.
Please advise me on how to take it forward, in the middle of the year can we change our pay scale structure, or need to wait till the next financial year.
Request you to kindly help to resolve the same.
Regards,
Sreedevi
From India, Hyderabad
Now, we would like to change the PF calculation only on basic i.e. 50% and would like to change the pay scale structure.
Please advise me on how to take it forward, in the middle of the year can we change our pay scale structure, or need to wait till the next financial year.
Request you to kindly help to resolve the same.
Regards,
Sreedevi
From India, Hyderabad
You cannot reduce the PF qualifying salary (salary on which you contribute PF). But if you have been contributing the PF on an amount above Rs 15000, you can bring it down to Rs 15000. Below this you cannot reduce the contributions.
From India, Kannur
4248From India, Kannur
What Mr. Madhu T K has been posted, I would like to add that you can change your remuneration structure in the mid of the year keeping in mind Mr. Madhu's above advice.
Instead of Basic and DA , you may consider only Basic (If there is no union agreement or other compulsion) and then other allowances to decide the monthly gross without bringing it below the existing level to dissatisfy the employees.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
Instead of Basic and DA , you may consider only Basic (If there is no union agreement or other compulsion) and then other allowances to decide the monthly gross without bringing it below the existing level to dissatisfy the employees.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
You cannot reduce the wages/salaries of employees, for the purpose of computation of PF contribution, once you started a higher wages.
In this connection, please also refer to Section-12 of Employees Provident Fund & Misc.Provisions Act, 1952.
From India, Aizawl
In this connection, please also refer to Section-12 of Employees Provident Fund & Misc.Provisions Act, 1952.
From India, Aizawl
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Salary Sheet & PF PT Calculation & Challan Nov 2010.xls