If an employee draws a salary of Rs.25000/- with no other allowances it is necessary to deduct pf or option to him / her to have pf ccount or not
From India, Chennai
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From India, Chennai
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There is no such formal regulation imposing any specific percentage of Basic + DA in a Monthly PaySlip Gross Salary. However, at some places, PF Inspectors are insisting on such percentages ranging from 40% to 50%. It is a common practice adopted by many Employers and HR Managers to keep the Basic + DA at the lowest possible level compared to the rising monthly gross salary. The purpose is very simple: to minimize PF and other statutory liabilities (Gratuity, Bonus). If we view PF as a useful post-retirement benefit and a social security tool, then this mindset needs to change. I am sure PF and Government Authorities have taken notice of this, and regulations prescribing specific percentages of Basic + DA will become a reality sooner or later. Thanks.
From India, Pune
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40From India, Pune
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Minimum wages- Basic.pdf