I agree with Mr Ashokelango. But we may have to get declaration form 11 under para 34 of the scheme.
From India, Madras
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5From India, Madras
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Dear Khushi,
As per the Minimum Wages Act, the basic salary of the employee should be Rs. 3896/-. If the basic salary of an employee falls between Rs. 3896 and Rs. 6500, the employee's PF contribution will be deducted based on 100% of the basic salary. If the basic salary exceeds Rs. 6500, PF will be deducted on Rs. 6500/-.
With Warm Regards,
Priyadarshini
From India, Bangalore
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As per the Minimum Wages Act, the basic salary of the employee should be Rs. 3896/-. If the basic salary of an employee falls between Rs. 3896 and Rs. 6500, the employee's PF contribution will be deducted based on 100% of the basic salary. If the basic salary exceeds Rs. 6500, PF will be deducted on Rs. 6500/-.
With Warm Regards,
Priyadarshini
From India, Bangalore
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Dear Khushi,
As far as I know, no law prescribes how much the basic pay should be for any employee, let alone the rest.
Of course, for industrial employees who follow a wholesale/Consumer Price Index-based DA system, there is a component called Fixed and Variable DAs (mostly Unionised Estts.). However, it is up to you to fix the basic pay. Why not make it 100%?
To address your concern - many establishments follow consolidated remuneration without breaking it into other components, in which case it will be considered as basic pay only. Am I correct?
Kumar S.
From India, Bangalore
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As far as I know, no law prescribes how much the basic pay should be for any employee, let alone the rest.
Of course, for industrial employees who follow a wholesale/Consumer Price Index-based DA system, there is a component called Fixed and Variable DAs (mostly Unionised Estts.). However, it is up to you to fix the basic pay. Why not make it 100%?
To address your concern - many establishments follow consolidated remuneration without breaking it into other components, in which case it will be considered as basic pay only. Am I correct?
Kumar S.
From India, Bangalore
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yes it can be 100% But it make a lot of diiference to the organisation in view of Gratuity and other beneficiary terms
From India, Warangal
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From India, Warangal
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In my opinion, Khushi can definitely keep 100% basic and exempt employees from EPF if the basic is above 15,000/-. In this case, EPF is not mandatory. There is no rule that prescribes the maximum percentage of basic. A company may choose to pay higher gratuity, but that would typically happen only after five years. Bonus is not mandatory for anyone drawing a basic salary above 10,000 PM.
Requesting elders to comment.
From India, Hyderabad
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Requesting elders to comment.
From India, Hyderabad
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls