Ours in an industry having above 100 labours and 30 white collar employees.
Can we keep two slabs of basic for employee. We wish to keep 100 % basic of Gross salary for labours and 60 % basic for white color jobs.
Will provident fund department object to this?
From India, Hyderabad
1Can we keep two slabs of basic for employee. We wish to keep 100 % basic of Gross salary for labours and 60 % basic for white color jobs.
Will provident fund department object to this?
From India, Hyderabad
There was a latest rule that basic can't be lesser than 50% of Gross salary. My question was in context of that rule.
I understand that EPFO can include certain allowances also in eligible amount.
From India, Hyderabad
I understand that EPFO can include certain allowances also in eligible amount.
From India, Hyderabad
There is no rule as on date that Basic should be 50% of Gross Salary. As per definition of wages in all labor codes it will 50% of Total Remuneration calculated under the definition of wages.
PF authority has nothing to do with % of Basic with respect to monthly gross. Moreover after the verdict of apex court, PF contribution will also be on other allowances (conditional).
Usually in most of the organization, the % of Basic is different in different grade with respect to monthly gross. This will be common after implementation of labor codes and as per definition of wages.
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
PF authority has nothing to do with % of Basic with respect to monthly gross. Moreover after the verdict of apex court, PF contribution will also be on other allowances (conditional).
Usually in most of the organization, the % of Basic is different in different grade with respect to monthly gross. This will be common after implementation of labor codes and as per definition of wages.
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
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