Dear all,
The upper limit for the basic salary at 6500 allows the option to deduct PF at 6500*12%. The 6500 is the eligibility threshold for the PF fund. If an employee's basic salary is less than 6500, they need to contribute to the PF, as it is mandatory. However, for salaries above this threshold, the contribution is optional.
Thank you,
Parveen
From India, Bahadurgarh
Acknowledge(0)
Amend(0)
The upper limit for the basic salary at 6500 allows the option to deduct PF at 6500*12%. The 6500 is the eligibility threshold for the PF fund. If an employee's basic salary is less than 6500, they need to contribute to the PF, as it is mandatory. However, for salaries above this threshold, the contribution is optional.
Thank you,
Parveen
From India, Bahadurgarh
Acknowledge(0)Amend(0)
What if the PF is included in CTC on both sides (Employee and Employers) from our Salary? My salary structure is as follows. Please guide. Is it OK? Or not.
BASIC 5670.00
DA 2835.00
HRA 4253.00
CONVEYANCE ALLOWANCE 1600.00
MEDICAL ALLOWANCE 1250.00
SPECIAL ALLOWANCE 3643.00
CTC BONUS 1749.00
GROSS SALARY (A) Total CTC 21000.00
EMPLOYEE DEDUCTION
EMPLOYEE PF 1021.00
EMPLOYER PF (Deduct from Employee) 1021.00
EMPLOYEE PROFESSIONAL TAX 200.00
TOTAL EMPLOYEE DEDUCTION (B) 2242.00
NET TAKE HOME (A - B) 18758.00
From India, Ahmedabad
Acknowledge(0)Amend(0)
BASIC 5670.00
DA 2835.00
HRA 4253.00
CONVEYANCE ALLOWANCE 1600.00
MEDICAL ALLOWANCE 1250.00
SPECIAL ALLOWANCE 3643.00
CTC BONUS 1749.00
GROSS SALARY (A) Total CTC 21000.00
EMPLOYEE DEDUCTION
EMPLOYEE PF 1021.00
EMPLOYER PF (Deduct from Employee) 1021.00
EMPLOYEE PROFESSIONAL TAX 200.00
TOTAL EMPLOYEE DEDUCTION (B) 2242.00
NET TAKE HOME (A - B) 18758.00
From India, Ahmedabad
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.