Dear All,
a) We have an employee his joining is in second week of month , now how to calculate provident fund & his basic salary .
b) In case of LOP , how to calculate provident fund and what would be basic salary if his actual basic salary is 10,000
From India, Bangalore
4a) We have an employee his joining is in second week of month , now how to calculate provident fund & his basic salary .
b) In case of LOP , how to calculate provident fund and what would be basic salary if his actual basic salary is 10,000
From India, Bangalore
a. There is no standard law specified to have the basic wage in some percentage of the total Gross / CTC. But companies are practicing between 35 to 60% of the total gross will be put into basic wages. Even some companies only put the basic wages specified in the minimum wages declared by state govt. Court also directed that the EPFO cannot take any action on the employer if they split the minimum wages to allowances.
b. In case of LOP, the basic salary also will be reduced proportionately. If the CTC or Gross salary of an employee is Rs. 10000/-, You can have the basic specified in the 1st point.
From India, Chennai
b. In case of LOP, the basic salary also will be reduced proportionately. If the CTC or Gross salary of an employee is Rs. 10000/-, You can have the basic specified in the 1st point.
From India, Chennai
You pay 12% of the wages the employee earned from the date of joining till the month end, as his epf contribution.
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear Deepika,
The salary is payabe to the employee depend upon the number days actually worked. If a employee has joined in the middle of the month, you have to pay his salary from the date of joining to last day of calender month. Salary means basic, DA/VDAm any other allowances all proportionate from the date of joining. Your query is LOP towards PF, First derive what is the number of days payable at that month say 30 days. In this you deduct the LOP. Balance days are payable. The PF contribution will be on the actal wages/salary earned Basic and DA..
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
The salary is payabe to the employee depend upon the number days actually worked. If a employee has joined in the middle of the month, you have to pay his salary from the date of joining to last day of calender month. Salary means basic, DA/VDAm any other allowances all proportionate from the date of joining. Your query is LOP towards PF, First derive what is the number of days payable at that month say 30 days. In this you deduct the LOP. Balance days are payable. The PF contribution will be on the actal wages/salary earned Basic and DA..
Adoni Suguresh
Labour Laws Consultant
From India, Bidar
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Basic wages & allw.-Madras High Court ruling on the applicability of Provident Fund.docx
Provident fund.zip
PROVIDENT FUND.rar