Dear Radha,
The PF liability is calculated on Basic+DA amt which if equal to minimum wage will automatically be used to calculate PF .
If you pay 250 for 26 days - You need to check the following :
a) What is the min wage for Chennai In the area where the workers are hired.
b) If the min wage I the area is Rs.250/- pm ; Then you need to take Rs.250*26 as Basic+DA and calculate the PF on the same (250*26)
c) If the min wage is for eg . Rs.200/- pm; Then you can make the wage register showing Rs.200 per month as Basic +DA and Balance as HRA and calculate PF on only Basic +DA (200*26)
Thanks & Regards,
Deena Jagasia
From India, Mumbai
46The PF liability is calculated on Basic+DA amt which if equal to minimum wage will automatically be used to calculate PF .
If you pay 250 for 26 days - You need to check the following :
a) What is the min wage for Chennai In the area where the workers are hired.
b) If the min wage I the area is Rs.250/- pm ; Then you need to take Rs.250*26 as Basic+DA and calculate the PF on the same (250*26)
c) If the min wage is for eg . Rs.200/- pm; Then you can make the wage register showing Rs.200 per month as Basic +DA and Balance as HRA and calculate PF on only Basic +DA (200*26)
Thanks & Regards,
Deena Jagasia
From India, Mumbai
Dear Radha,
The PF liability is calculated on Basic+DA amt which if equal to minimum wage will automatically be used to calculate PF .
If you pay 250 for 26 days - You need to check the following :
a) What is the min wage for Chennai In the area where the workers are hired.
b) If the min wage I the area is Rs.250/- pm ; Then you need to take Rs.250*26 as Basic+DA and calculate the PF on the same (250*26)
c) If the min wage is for eg . Rs.200/- pm; Then you can make the wage register showing Rs.200 per month as Basic +DA and Balance as HRA and calculate PF on only Basic +DA (200*26)
And for ESIC = Full gross is taken for contribution. (Also include OT, any other allowances if given)
Thanks & Regards,
Deena Jagasia
From India, Mumbai
The PF liability is calculated on Basic+DA amt which if equal to minimum wage will automatically be used to calculate PF .
If you pay 250 for 26 days - You need to check the following :
a) What is the min wage for Chennai In the area where the workers are hired.
b) If the min wage I the area is Rs.250/- pm ; Then you need to take Rs.250*26 as Basic+DA and calculate the PF on the same (250*26)
c) If the min wage is for eg . Rs.200/- pm; Then you can make the wage register showing Rs.200 per month as Basic +DA and Balance as HRA and calculate PF on only Basic +DA (200*26)
And for ESIC = Full gross is taken for contribution. (Also include OT, any other allowances if given)
Thanks & Regards,
Deena Jagasia
From India, Mumbai
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