Dear Senior's
I am working with manufacturing company of Glass as mgr - hr, every company has a different norms for the hr policy. They are providing 40% of Gross as a basic, because PF is calculated on basic. But as i know basic is 60% of gross. Pls advice me what should be the % for the basic salary & how it should be calculated with the current norms.
Warms Regards
Kavita Pal
From India, Ghaziabad
I am working with manufacturing company of Glass as mgr - hr, every company has a different norms for the hr policy. They are providing 40% of Gross as a basic, because PF is calculated on basic. But as i know basic is 60% of gross. Pls advice me what should be the % for the basic salary & how it should be calculated with the current norms.
Warms Regards
Kavita Pal
From India, Ghaziabad
Dear Ms.Kavita,
Yes, Basic wages should be 60% of Gross Salary but the Govt. Fixed minimum wages should be the Basic Wages for which EPF has to be contributed. I.e. The Basic wages should not be lesser than the minimum wages as announced for the particular Zone and Industry Type.
From India, Madurai
15Yes, Basic wages should be 60% of Gross Salary but the Govt. Fixed minimum wages should be the Basic Wages for which EPF has to be contributed. I.e. The Basic wages should not be lesser than the minimum wages as announced for the particular Zone and Industry Type.
From India, Madurai
Since you cannot reduce the existing Basic, you can increase other component with Basic stagnant during increment which will decrease the % of Basic from Gross Salary
From India, Ahmadabad
From India, Ahmadabad
Ms Kavita
As of now there is no change in PF except ceiling increase to accomodate more employees. Pl don't be in a hurry till the Supreme Court decide on the splitting of minimum wages. Pl note that as per Sec 2 (h) of the Minimum Wages Act 1948, HRA is included as part of minimum wages. Govt of Punjab has notified that the minimum wages fixed by the Govt should be the basic rate of wages.
Regards
N Nataraajhan, Sakthi Management Services
From India, Bangalore
As of now there is no change in PF except ceiling increase to accomodate more employees. Pl don't be in a hurry till the Supreme Court decide on the splitting of minimum wages. Pl note that as per Sec 2 (h) of the Minimum Wages Act 1948, HRA is included as part of minimum wages. Govt of Punjab has notified that the minimum wages fixed by the Govt should be the basic rate of wages.
Regards
N Nataraajhan, Sakthi Management Services
From India, Bangalore
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