PF Calculation is based upon only Basic Salary & not on Gross. Under PF Act we have a ceiling of Rs.6500 on basic, for every employe whose salary is more than Rs.6500 have option/choise to avail the facility of PF deduction by filling for 11.
hence, it depends on the employee 's basic salary .
From India, Gurgaon
hence, it depends on the employee 's basic salary .
From India, Gurgaon
Is there a rule that Basic Salary should be 50% of Gross? Can it be 25% of Gross Salary? Has it got a connection with Minimum wages act? If yes pl let me know. Thanks Preetam Mehta 97409 54666
From India, Bangalore
From India, Bangalore
There is no rule fixing the ratio of basic and other allowances. But this 50% is insisted by the authorities so that the benefit will be passed on to the employees. Otherwise the very purpose of this social security legislation will be defeated by some employers by showing a major portion as allowances and thus deceiving the employees, for whose benefit the act is enacted.
Hope I made you clear
rgds
leela. . .
From India, Coimbatore
1Hope I made you clear
rgds
leela. . .
From India, Coimbatore
For HR managers, the site of 'ramadvice.wordpress.com' is good one to know financial and admin details
From India, Madras
From India, Madras
hello professionals im new in this site,
i just want to know that what are benefits of salary structure in a manufacturing company as there is no salary structure at present in my company and sir told me that find out benefits of salary structure for employee and for employer.
From India, Pune
i just want to know that what are benefits of salary structure in a manufacturing company as there is no salary structure at present in my company and sir told me that find out benefits of salary structure for employee and for employer.
From India, Pune
Dear Queriest,
Pl.be aware, PF deduction has to be made for employees drawing upto Rs.6,500/- as salary/wages. (Pl.refer attachments for your guidance as to what is wages ?)
Once an employee crossess Rs.6500/- it is the discretion of the employee & employer whether or not to deduct PF subs. There is no compulsion of either side. But many employers continue the deduction of subscrition from emp. & employer's contribution even beyond Rs.6500/- voluntarily as a gesture and there is NO statutory liability.
There are companies which permits subs.from employees to their PF A/cs. even more than the permissible limits voluntarily and also allow them either to increase or decrease their subs. on adhoc basis once or twice in a year.
These extra subs/contributions generally happens in employers who have set up their own PF Trust to manage the PF as 'Exempted'.
kumar.s.
bg.
From India, Bangalore
Pl.be aware, PF deduction has to be made for employees drawing upto Rs.6,500/- as salary/wages. (Pl.refer attachments for your guidance as to what is wages ?)
Once an employee crossess Rs.6500/- it is the discretion of the employee & employer whether or not to deduct PF subs. There is no compulsion of either side. But many employers continue the deduction of subscrition from emp. & employer's contribution even beyond Rs.6500/- voluntarily as a gesture and there is NO statutory liability.
There are companies which permits subs.from employees to their PF A/cs. even more than the permissible limits voluntarily and also allow them either to increase or decrease their subs. on adhoc basis once or twice in a year.
These extra subs/contributions generally happens in employers who have set up their own PF Trust to manage the PF as 'Exempted'.
kumar.s.
bg.
From India, Bangalore
Hi Arti,
PF Calculation is based on Basic Salary & not on Gross, ESI Calculation is based on The Gross salary. Under PF Act we have a ceiling of Rs.6500 on basic, for every employe whose salary is more than Rs.6500 can opt for pf deduction by filling for 11.
From India, Chandigarh
PF Calculation is based on Basic Salary & not on Gross, ESI Calculation is based on The Gross salary. Under PF Act we have a ceiling of Rs.6500 on basic, for every employe whose salary is more than Rs.6500 can opt for pf deduction by filling for 11.
From India, Chandigarh
sir pls solve my problem A employees join a company and after one month he died in a road accident, he is eligible for gratuity or not, if yes pls send a notification or circular related gratuity.
thanks
From India, New Delhi
thanks
From India, New Delhi
Hi Hitesh, He is not eligible for gratuity because gratuity start after serving of One year to the Compnay.
From India, Chandigarh
From India, Chandigarh
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