Dear ppl,
i'm in chennai and i'm paying to my employees gross salary ranging from 4900- 11350/-.which is being split into 60% basic, 30% HRA and 10% conveyances. Only recently i registered under factories act.now as per my lawyer the minimum wages payable under tamil nadu govt is 4790/- which is (basic + D.A.) but my P.F consultant has split gross salary(basic60%+hra30% and converyance10%) in the following way saying this is how calculation has to be done for p.f. only recently did i come to know such bifurcations will lead to legal complications. i'm prepared to pay p.f and minimum wages according to gov rules. now i've few que here.
1. if we calculate only Basic i donot comply with minimum wages.
2. will there be a problem in p.f.dept regarding this matter.
3.is it legal to say my gross salary is more than the total of minimum wages(basic+D.A) prescribed by the govt.
apart from the gross salary i pay conveyance also i.e if a person's salary is 11350/-(basic+hra+conveyance)+ 350/- as conveyance+ tea expenses 400/- month.
thus even after paying so much money i'm still under legal complications. pl help me out. wat is the remedy in this situation.
with regards
vivek
From India, Bangalore
i'm in chennai and i'm paying to my employees gross salary ranging from 4900- 11350/-.which is being split into 60% basic, 30% HRA and 10% conveyances. Only recently i registered under factories act.now as per my lawyer the minimum wages payable under tamil nadu govt is 4790/- which is (basic + D.A.) but my P.F consultant has split gross salary(basic60%+hra30% and converyance10%) in the following way saying this is how calculation has to be done for p.f. only recently did i come to know such bifurcations will lead to legal complications. i'm prepared to pay p.f and minimum wages according to gov rules. now i've few que here.
1. if we calculate only Basic i donot comply with minimum wages.
2. will there be a problem in p.f.dept regarding this matter.
3.is it legal to say my gross salary is more than the total of minimum wages(basic+D.A) prescribed by the govt.
apart from the gross salary i pay conveyance also i.e if a person's salary is 11350/-(basic+hra+conveyance)+ 350/- as conveyance+ tea expenses 400/- month.
thus even after paying so much money i'm still under legal complications. pl help me out. wat is the remedy in this situation.
with regards
vivek
From India, Bangalore
12
you can use Basic (Basic + DA) in one term
like if 4000 ts basic and 300 rs is DA so you take 4300 rs basic and Use alwes Basic = CTc's 50% for metro & 40 % for ther location
HRA =Basic's 50 % metro and other 40%
convence 800 rs
and you can use CCA,Spc Allw etc
From India, Bangalore
Contributing Member
like if 4000 ts basic and 300 rs is DA so you take 4300 rs basic and Use alwes Basic = CTc's 50% for metro & 40 % for ther location
HRA =Basic's 50 % metro and other 40%
convence 800 rs
and you can use CCA,Spc Allw etc
From India, Bangalore
Contributing Member
Thanks Anish,
Now my que is
1. as per rule is the labor dept taking the ctc (gross salary) as the minimum wages or only the basic is taken into account.
2. should i pay PF for the gross salary or is bifurcation of gross salary ok.
and thanks for your valuable advice sir.
with regards
vivek
From India, Bangalore
Now my que is
1. as per rule is the labor dept taking the ctc (gross salary) as the minimum wages or only the basic is taken into account.
2. should i pay PF for the gross salary or is bifurcation of gross salary ok.
and thanks for your valuable advice sir.
with regards
vivek
From India, Bangalore
Hi Vivek:
It does not matter what break up you have given, as long as :
(a) The gross wages paid are more than the government declared minimum wages.
(b) In case HRA is applicable to you, then please add 5% HRA to the Basic + Spl. All (DA) declared by the government, and then match the wages.
(c) Basic wages are in the range of 40% to 60% - depending upon your location, company policy and trends in the area. Please take care that OT rate is double of gross.
Please read the articles available on this forum on this subject.
Regards,
Kalpana Iyer
From India, Pune
Contributing Member
It does not matter what break up you have given, as long as :
(a) The gross wages paid are more than the government declared minimum wages.
(b) In case HRA is applicable to you, then please add 5% HRA to the Basic + Spl. All (DA) declared by the government, and then match the wages.
(c) Basic wages are in the range of 40% to 60% - depending upon your location, company policy and trends in the area. Please take care that OT rate is double of gross.
Please read the articles available on this forum on this subject.
Regards,
Kalpana Iyer
From India, Pune
Contributing Member
Dear Vivek
What yr PF consultant has said is almost correct.... at the worst u may hv to add 10% conv for the purpose of EPF contribution...30% of HRA can continue.... HRA does not attract EPF and can still form the part of wages to be included in MW.
regards
From India, Bangalore
Contributing Member
What yr PF consultant has said is almost correct.... at the worst u may hv to add 10% conv for the purpose of EPF contribution...30% of HRA can continue.... HRA does not attract EPF and can still form the part of wages to be included in MW.
regards
From India, Bangalore
Contributing Member
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