Dear All,
Basic salary means basic + da and pf is deductable on basic salary.
No other allowance comes under pf arena.
Max cap is 6500/- of basic salary.
Incase any employee got the increment and post increament his basic salary is greater than 6500/- the employee would have two option to contribute either contribute on whole basic salary or can advise employer to deduct the pf on basic salary upta 6500/-amount.
From United States
Basic salary means basic + da and pf is deductable on basic salary.
No other allowance comes under pf arena.
Max cap is 6500/- of basic salary.
Incase any employee got the increment and post increament his basic salary is greater than 6500/- the employee would have two option to contribute either contribute on whole basic salary or can advise employer to deduct the pf on basic salary upta 6500/-amount.
From United States
Dear all,
A worker is earning Rs. 225/- per day, and for a month he receives Rs. 5850/- per month for a 26 working days.
Here we are treating the gross salary into two parts i.e. 60% of total salary treating as basic & Da. remaining total 40% of salary treating as HRA & other allowances.
60% of total salary i.e. BAsic & DA is considering for PF calculation.
100% of total salary is considering for ESI calculation.
a) this method is correct or wrong?
b) according to minimum wages total salary is to be considered for PF calculation?
Thanks
Balamurugan
From India, Madras
A worker is earning Rs. 225/- per day, and for a month he receives Rs. 5850/- per month for a 26 working days.
Here we are treating the gross salary into two parts i.e. 60% of total salary treating as basic & Da. remaining total 40% of salary treating as HRA & other allowances.
60% of total salary i.e. BAsic & DA is considering for PF calculation.
100% of total salary is considering for ESI calculation.
a) this method is correct or wrong?
b) according to minimum wages total salary is to be considered for PF calculation?
Thanks
Balamurugan
From India, Madras
hi, Here we have to considered only Basic where other allowances will not comes under basic. Hence PF wages Rs.5000 only DASU.B
From India, Hyderabad
From India, Hyderabad
Dear All,
At presently we are deducting PF contribution for full Basic + DA (6500/- below and above) at 12% but now we are going to deduct only for 6500/- Basic+DA (6500/- above Basic+DA ceiling to 6500/- only) is there any legal obligations for this.
Please suggest me...
Regards,
Ashoka M S
From India, Bangalore
At presently we are deducting PF contribution for full Basic + DA (6500/- below and above) at 12% but now we are going to deduct only for 6500/- Basic+DA (6500/- above Basic+DA ceiling to 6500/- only) is there any legal obligations for this.
Please suggest me...
Regards,
Ashoka M S
From India, Bangalore
Dear Bala,
Please go through the recent judgement given by Madras High Court & Madhya Pradesh High Court regarding inclusion of component into Basic Wages. This would clear your queries.
As per earlier & existing practice only Basic & DA is considered for calculation of PF contribution.
Regards,
David
From India, Lanjigarh
Please go through the recent judgement given by Madras High Court & Madhya Pradesh High Court regarding inclusion of component into Basic Wages. This would clear your queries.
As per earlier & existing practice only Basic & DA is considered for calculation of PF contribution.
Regards,
David
From India, Lanjigarh
Dear Mr. David, This is not ruling till date. There are appeal against this. Please correct if I am wrong. Regards, Rahul Bagale
From Korea
2From Korea
Hi,
Can any one let me know about applicability of ESI to construction company?
As per my knowledge ESI is not applicable to construction workers working at site but some ESI inspector saying that ESI applicable to site worker who are working for painting, electrician etc. As per ESI inspector observation, he is saying that ESI is not applicable to civil worker only working at site.
Please provide me any notification.
Regards
Shyam
From India, Mumbai
Can any one let me know about applicability of ESI to construction company?
As per my knowledge ESI is not applicable to construction workers working at site but some ESI inspector saying that ESI applicable to site worker who are working for painting, electrician etc. As per ESI inspector observation, he is saying that ESI is not applicable to civil worker only working at site.
Please provide me any notification.
Regards
Shyam
From India, Mumbai
Dear Seniors
Example : This is my salary structure working in SW Company
3575 55.00% Basic
1300 20.00% HRA
488 7.50% Conveyance
162 2.50% Educational
325 5.00% Medical
325 5.00% Professional Development
325 5.00% LTC
6500 100.00%
Now employeer is deducting PF on Basic i.e 12% on 3575 is Rs. 429,
now new provided fund rule is expect HRA ? or any other
Please Advise
Regards
Praveen
From India, Hyderabad
Example : This is my salary structure working in SW Company
3575 55.00% Basic
1300 20.00% HRA
488 7.50% Conveyance
162 2.50% Educational
325 5.00% Medical
325 5.00% Professional Development
325 5.00% LTC
6500 100.00%
Now employeer is deducting PF on Basic i.e 12% on 3575 is Rs. 429,
now new provided fund rule is expect HRA ? or any other
Please Advise
Regards
Praveen
From India, Hyderabad
Hi,
The recent court judgments are favorably towards establishing a fair social security as their is a perception that Pf should be deducted on 12% of basic salary. To bear minimum implications many companies have kept basic as low as 1000 INR thus contributing a pittance to social security.
Both the court judgments are very positive for ensuring a strong social security system. The judgment can be summed up as what so ever your break up Pf should be deducted atleast at PF base( Basic+ Spl All) of minimum wages of the state and category ie ( skilled / Semiskilled/ Unskilled).
It is rumored that PF exemption limit may be raised to 10000 INR initially and bring it par with ESIC cut off.
Shibu Krishnan
From India, Pune
The recent court judgments are favorably towards establishing a fair social security as their is a perception that Pf should be deducted on 12% of basic salary. To bear minimum implications many companies have kept basic as low as 1000 INR thus contributing a pittance to social security.
Both the court judgments are very positive for ensuring a strong social security system. The judgment can be summed up as what so ever your break up Pf should be deducted atleast at PF base( Basic+ Spl All) of minimum wages of the state and category ie ( skilled / Semiskilled/ Unskilled).
It is rumored that PF exemption limit may be raised to 10000 INR initially and bring it par with ESIC cut off.
Shibu Krishnan
From India, Pune
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Splitting of minimum wages for PF in abeyance (1).pdf
Minimum Wages, ESI & PF.pps