hello sir,
i am an mgmt hr trainee...
i just wanna know that if for eg the salary of a person is 5000..
hw much amount we can put in hra and basic..
is dere any specific limit for that under the esi n pf regulations...
kindly repl asap..
thanks & regads
sakshi sachdeva
From India, Delhi
i am an mgmt hr trainee...
i just wanna know that if for eg the salary of a person is 5000..
hw much amount we can put in hra and basic..
is dere any specific limit for that under the esi n pf regulations...
kindly repl asap..
thanks & regads
sakshi sachdeva
From India, Delhi
Dear Sonica We can’t reduce the Basic of an employee . It will affect in several aspects like, PF , Gratuity , Bonus , WC ,and also HRA exemption in IT. In employee view it is unfair . rds Bala
From India, Madras
From India, Madras
Hi
We can do so in some cases. For example, if we engage trainees for a period of 1 year with a stipend of Rs. 12,000/- per month, the PF contribution for that period would be with a limit of Rs.6,500/-. On completion of training and on confirmation, if he if fit in a salary wherein basic is less than 6,500/-, the PF contribution will get automatically reduced.
But, all the above details should be incorporated as a terms & condition in the Training letter issued.
From India, Pune
We can do so in some cases. For example, if we engage trainees for a period of 1 year with a stipend of Rs. 12,000/- per month, the PF contribution for that period would be with a limit of Rs.6,500/-. On completion of training and on confirmation, if he if fit in a salary wherein basic is less than 6,500/-, the PF contribution will get automatically reduced.
But, all the above details should be incorporated as a terms & condition in the Training letter issued.
From India, Pune
yes, it is true that the for an employee comes under the PF if his basic plus DA is within 6500/= but it has become the policy or practice to cover all employee irrespective of the salary.
so reduction of basic cannot be done. only way is by way of punishment, basic can be reduced.
that is the reason always i tell the employers not to extend the pf benefits, instead there are some schemes the employee can be covered if there basic plus da is more than 6500. they are public provident fund, superannuation fund, some more schmes can be extended like education, uniform, housing advance etc
nagaraj
From India, Bangalore
1so reduction of basic cannot be done. only way is by way of punishment, basic can be reduced.
that is the reason always i tell the employers not to extend the pf benefits, instead there are some schemes the employee can be covered if there basic plus da is more than 6500. they are public provident fund, superannuation fund, some more schmes can be extended like education, uniform, housing advance etc
nagaraj
From India, Bangalore
Dear Folks, Yes, the company may revise its salary structure. No, the amount of basic pay cannot be reduced. best regards Ajay Chaudhari
From India, New Delhi
From India, New Delhi
Dear Sonica,
Minimum wages is apllicable on gross salary not to CTC or in hand salary. Basic & DA can not be reduced in any condition.
But in a special case you can terminate that individual for 2 or 3 months and again restructurise his salary. But its is only solution not any legal opinion.
From India, Calcutta
Minimum wages is apllicable on gross salary not to CTC or in hand salary. Basic & DA can not be reduced in any condition.
But in a special case you can terminate that individual for 2 or 3 months and again restructurise his salary. But its is only solution not any legal opinion.
From India, Calcutta
Practically, while structuring the salary breakup his basic should not be less than the minimum wage rates or basic shall not be less than basic+DA, as per mini wage. The HRA must be above the 5% of Basic+DA.
From India
From India
Dear Sonica !!! Minimum wages is the gross monthly wages paid to an employee whereas the CTC would include various other directly financial and indirect fringe benefits(For eg. Cost of uniform or the average medical reimbursement etc) cash in hand refers to the salary received after statutory deductions. The statutory deductions are to be made from Minimum wages too. Hence cash in hand is less than Minimum wages whereas CTC is more encompassing than Min. wages.
As regards any reduction in Basic Pay due to restructuring, PF authorities cannot object so long as you continue to subscribe to the PF. But looking to the rigors of Section 12 you will have to demonstrate that the reduction of Basic wages was necessary and that the total wages are maintained at the same level or more. May be agreement with the union would help you to prove the point that the restrctuting was genuine
Regards
KK
As regards any reduction in Basic Pay due to restructuring, PF authorities cannot object so long as you continue to subscribe to the PF. But looking to the rigors of Section 12 you will have to demonstrate that the reduction of Basic wages was necessary and that the total wages are maintained at the same level or more. May be agreement with the union would help you to prove the point that the restrctuting was genuine
Regards
KK
You can not reconstruct the salary stracture of employees without their consent, it effect P.F,ESI, and as well as Gratuity. shish uniyal
From India, New Delhi
From India, New Delhi
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