Hi, as per our current salary structure basic/hra/cca/conveyance/other allowances are the salary components and PF 12% is deducted only from basic salary. As per the understanding PF is to be deducted fro basic and DA whereas we don't have DA component, it is deducted from only basic. Basic salary as per the structure is approx 35-40% of total earning.
Recently we had inspection by PF office and raised a query why we are deducting PF only from basic and not from other allowances.
In this regards the following information could help in dealing with PF office, request to please provide your inputs.
1) Is there any stipulated method / % of total earning etc for Basic salary calculation
2) Is there any rule that PF to be deducted from all salary components and not only from basic and DA
3) is there any ruling etc to substantiate claim of PF deduction applicable only from basic and DA etc
Kindly help.
From India, Bangalore
3Recently we had inspection by PF office and raised a query why we are deducting PF only from basic and not from other allowances.
In this regards the following information could help in dealing with PF office, request to please provide your inputs.
1) Is there any stipulated method / % of total earning etc for Basic salary calculation
2) Is there any rule that PF to be deducted from all salary components and not only from basic and DA
3) is there any ruling etc to substantiate claim of PF deduction applicable only from basic and DA etc
Kindly help.
From India, Bangalore
any payout to employee which is regular in nature, Excluding HRA and medical is considered eligible for EPF,
My gross salary is 25000 what is my basic salary and can i. Will eligible for pf deduction
From India , Gurgaon
From India , Gurgaon
@ashok
how can a third party make analyse the salary structure of any company or it's employees? it depends on the company polilcy, department can ask for the rules to be complied only.
if you have any specific query on the issue, post here to get reply
how can a third party make analyse the salary structure of any company or it's employees? it depends on the company polilcy, department can ask for the rules to be complied only.
if you have any specific query on the issue, post here to get reply
Sir The easy way to calculate PF would be Consider 70% gross as eligibility. Example: If 10000 Rupees is the salary 70% would be 7000 Rupees. Calculate 12% on 7000 Rupees only.
From India, Chennai
From India, Chennai
Hi,
PF is deducted not only basic salary which includes of other components like /food/conveyance/other allowances except HRA up to maximum of 15000/- as per the PF rules. PF inspection has been done in our company and PF authority has directed us to follow the same rule which has been following thereafter.
Satya Nagaboyana
From India, Hyderabad
PF is deducted not only basic salary which includes of other components like /food/conveyance/other allowances except HRA up to maximum of 15000/- as per the PF rules. PF inspection has been done in our company and PF authority has directed us to follow the same rule which has been following thereafter.
Satya Nagaboyana
From India, Hyderabad
Please refer to < http://esewa.epfoservices.in/faq.php> to get a comprehensive idea about Employees Provident Fund. The spirit of this scheme also must be applicable to any other PF scheme the company may choose to subscribe to.
The following extract from the webpage may answer the question:
"43. WC.7: What is the amount of wages to be considered for PF contributions?
PF Contribution is payable on all emoluments payable in cash to an employee during the month excluding the following:- (i) House Rent Allowance (ii) Over Time Allowance (iii) Bonus (iv) Commission or any other similar allowance; and (v) Any presents made by the employer"
You can avoid a lot of headaches with PF inspection, if you keep as many employees as possible above the PF ceiling of
Rs 15000/-. The agenda of the government is to turn PF into some kind of social security scheme by somehow including all citizen into its ambit. We cant fight the system too long. The best option is to include employer contribution into CTC. Also HR managers tend to help employees get income tax exemptions by showing as much HRA as possible in the salary breakup. That may help the employee, but not the employer. Let employees do their own tax planning.
From India, Bangalore
The following extract from the webpage may answer the question:
"43. WC.7: What is the amount of wages to be considered for PF contributions?
PF Contribution is payable on all emoluments payable in cash to an employee during the month excluding the following:- (i) House Rent Allowance (ii) Over Time Allowance (iii) Bonus (iv) Commission or any other similar allowance; and (v) Any presents made by the employer"
You can avoid a lot of headaches with PF inspection, if you keep as many employees as possible above the PF ceiling of
Rs 15000/-. The agenda of the government is to turn PF into some kind of social security scheme by somehow including all citizen into its ambit. We cant fight the system too long. The best option is to include employer contribution into CTC. Also HR managers tend to help employees get income tax exemptions by showing as much HRA as possible in the salary breakup. That may help the employee, but not the employer. Let employees do their own tax planning.
From India, Bangalore
Hi, thanks to all for the inputs on the above discussion. It was to re-confirm how it can be followed in a better way with less employer liability. Thanks a lot.
From India, Bangalore
From India, Bangalore
Dear Sir,
25000/- is gross or CTC
Basic ratio is 40-60%
What is ratio of your company, if your company basic ratio is 40% than =25000*40%= 10,000/-
if any query, you can call any time.
8901103089
Regards
Suresh Sharma
From India, Pune
25000/- is gross or CTC
Basic ratio is 40-60%
What is ratio of your company, if your company basic ratio is 40% than =25000*40%= 10,000/-
if any query, you can call any time.
8901103089
Regards
Suresh Sharma
From India, Pune
Dear All
Our salary structure contain the following
Component...
basic 40% of CTC
DA 10% of Basic
HRA 40% of Basic
Medical 1500 PM
Conveyance 1600 PM
Education Allowance 200 PM
And rest in other Allowance
Pls clarify on which above stated component the PF would be chargable
Regds
Amit
From India, Jaipur
Our salary structure contain the following
Component...
basic 40% of CTC
DA 10% of Basic
HRA 40% of Basic
Medical 1500 PM
Conveyance 1600 PM
Education Allowance 200 PM
And rest in other Allowance
Pls clarify on which above stated component the PF would be chargable
Regds
Amit
From India, Jaipur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf