Dear Sir,
Is there any minimum wage limit for deduction of PF? Suppose I am paying Rs. 3300/- Gross to my employee which is the minimum wage in Himachal Pradesh. Is there any limit of fixing basic salary and PF deduction on it? If so then please mail.
Thanks & Regards,
Avinash Kumar Sharma
Email-
From India, Mumbai
1Is there any minimum wage limit for deduction of PF? Suppose I am paying Rs. 3300/- Gross to my employee which is the minimum wage in Himachal Pradesh. Is there any limit of fixing basic salary and PF deduction on it? If so then please mail.
Thanks & Regards,
Avinash Kumar Sharma
Email-
From India, Mumbai
As per Employees Provident Fund and Misc. Provisions Act there is no minimum salary on which the PF should be contributed. The Act insists that PF should be contributed on the Basic salary, Dearness Allowance and Retaining allowance (allowance paid to retain man power when there is no work) However, the EPF authorities have come out with a decision that PF should be contributed at least on such wage which is not lesser than the minimum wages fixed by the government. This is to ensure that the employers do not bring the basic salary of their employees to a lower amount so as to reduce PF burden. Therefore, if the minimum wages is Rs 3300, you will have to pay PF at least on Rs 3300.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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