Dear Sir,
My query is shall we deduct PF on basic only if basic is higher than minimum wages declared by the authority, if yes then what happened if basic is less than minimum wages declared by the authority...pl guide
From India, Mumbai
1My query is shall we deduct PF on basic only if basic is higher than minimum wages declared by the authority, if yes then what happened if basic is less than minimum wages declared by the authority...pl guide
From India, Mumbai
Dear, Its illegally matter if ur employees who are getting PF deduction on below minimum wages........Company will be responsible to bear all kind of penalties like minimum wages & EPF.....
From India, Delhi
From India, Delhi
Thank you Sir for your prompt reply,
but if company giving salary higher than minimum wages and for saving employer's PF contribution showing Basic very low say 4000/- only and no DA , but all other emoluments such as HRA, CCA, Washing allowance etc. are paid very high to meet the requirements of Minimum Wages then is it lawful to deduct PF contribution on Rs.4000/- as happened in this case.
From India, Mumbai
but if company giving salary higher than minimum wages and for saving employer's PF contribution showing Basic very low say 4000/- only and no DA , but all other emoluments such as HRA, CCA, Washing allowance etc. are paid very high to meet the requirements of Minimum Wages then is it lawful to deduct PF contribution on Rs.4000/- as happened in this case.
From India, Mumbai
No, not at all 4000 basic should be come under minimum wages category other deduction does not lie to EPF.........
From India, Delhi
From India, Delhi
Dear Lucy,
I am not agree with you. Please don't interlink minimum wage rate and PF wage (basic + DA). Splitting of minimum wage for PE contribution is legally permitted. Some court cases also available for the same.
From India, Bhatinda
I am not agree with you. Please don't interlink minimum wage rate and PF wage (basic + DA). Splitting of minimum wage for PE contribution is legally permitted. Some court cases also available for the same.
From India, Bhatinda
If any one please provide PF ruling on the same.
What happened if Basic and DA are not more than 4000/- and other emoluments are very high which does not attract PF contribution then Rs 480/- on above mentioned amount is acceptable by PF Dept.
All rules and Sections regarding PF are silent on that.......
From India, Mumbai
What happened if Basic and DA are not more than 4000/- and other emoluments are very high which does not attract PF contribution then Rs 480/- on above mentioned amount is acceptable by PF Dept.
All rules and Sections regarding PF are silent on that.......
From India, Mumbai
than how can we decide Basic . how can we set structure of salary in which pf deduction will be minumum and all criteria legally fulfill ?
From India, Vapi
From India, Vapi
Dear Sir,
As per the discussion with some seniors I came to know that there is no specific rule or circular with respect of how much would be the minimum basic so PF can be calculated on it.
Normally PF authorities insist that basic should be not less than 50% of the Gross Salary.....but there is no specific order to support that...
However now its propose to increase PF liability on 50% of the gross salary or Rs. 15000/- whichever is less...circular would be published very soon...
From India, Mumbai
As per the discussion with some seniors I came to know that there is no specific rule or circular with respect of how much would be the minimum basic so PF can be calculated on it.
Normally PF authorities insist that basic should be not less than 50% of the Gross Salary.....but there is no specific order to support that...
However now its propose to increase PF liability on 50% of the gross salary or Rs. 15000/- whichever is less...circular would be published very soon...
From India, Mumbai
The latest info from Govt of India: To give clarity and to avoid confusion in the minds of young HR executives of India, GOI will include, for the purpose of PF, even those organisations where the number of employees are less than 20 and also PF will be calculated on the entire salary ie basic plus all allowances ! Your comfortable days are not far away (however, your take home-salary will come down drastically ! Be prepared !!!)
From India
From India
To add, there is also a proposal to relieve employees of their subscription of 12% retaining only Employers' contribution to PF a/cs. And may be employees' subscription changed to "optional" instead of compulsory as at present.
Other change in the pipeline is to remove the restriction of establishments where only 20 and above are employed, instead it's going to be every employee to be covered.
From India, Bangalore
Other change in the pipeline is to remove the restriction of establishments where only 20 and above are employed, instead it's going to be every employee to be covered.
From India, Bangalore
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Basic 4 pf.pdf