Hi!! I have one query - if an employee has a total salary of 18000 and his basic is supposed 8000 is he eligible to opt out from PF?
PF is considered on total salary or on the basic like the total is above 15K so he can opt-out from PF but basic is only 8K so PF should be there I am confused in this part kindly suggest with solution.
From India, Indore
PF is considered on total salary or on the basic like the total is above 15K so he can opt-out from PF but basic is only 8K so PF should be there I am confused in this part kindly suggest with solution.
From India, Indore
As per sec 2 of EPF & MP (Amendment) proposed Bill 2019, PF to be computed from Basic, DA & Retaining Allowance and do not compute from Bonus, Conveyance, HRA, Overtime Allowance & Gratuity. Further refer the bill for more clarification, herewith enclosed.
M. Palani
1M. Palani
In the proviso of the said amendment it has been mentioned that other allowances if more than 50% of wage (basic wage) that will add back to wage . The concept is 2/3 rd wage and 1/3rd other allowances of the monthly gross. Say for example on a monthly gross of 10,000/- better to have wage 70% i.e 7000/- and other allowances 30% i.e 3000/-. Let suppose it is reversed and wage is 3000/- and other allowances is 7000/-, then others allowance will be 50% of wage i.e 1500/- and wage will be 3000/- + 5500/-( 7000/- - 1500/- ) = 8500/-.
S K Bandyopadhyay (Howrah, WB)
From India, New Delhi
S K Bandyopadhyay (Howrah, WB)
From India, New Delhi
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