Hi, Recently there was a news in the Economic Times about EPFO to inspect companies splitting wages to reduce PF liability.
Refer the link below for more details on this news-
EPFO to inspect firms splitting wages to reduce Provident Fund liability - Economic Times
All organizations have certain salary structures to benefit the employees while fulfilling the statutory requirements.
Can somebody guide me on how should we structure the salary so that the PF requirements are fulfilled?
Regards,
Sarika
From India, Mumbai
Refer the link below for more details on this news-
EPFO to inspect firms splitting wages to reduce Provident Fund liability - Economic Times
All organizations have certain salary structures to benefit the employees while fulfilling the statutory requirements.
Can somebody guide me on how should we structure the salary so that the PF requirements are fulfilled?
Regards,
Sarika
From India, Mumbai
Madam,
As per PF act sec 2b, basic wages definition is given.
Now the limit of PF wage is increased from 6500 to 15000 ( Notification yet to receive ).
If you are deduction PF below Rs 15000/- and the salary of the member is higher than the wages you have shown, you have to certify that how the same is not PF wages.
PF wages are only excluded with HRA, Bonus, Overtime Allowance, Commission or any other similar allowance payable to employee.
Means all emoluments are covered under PF wages except above items.
Mostly Companies are deducting PF on Basic and DA. Education all, Conveyance, Medical all etc allowance are not taken under PF wages. Until the Mater was limited to Rs. 6500/- wages, and you were deducting on Rs. 6500/-, no query raised from PF office.
Hence be careful to on excluded allowances, why they are not included in PF wages if it is below Rs. 15000/-
Thanks,
Bhat
From India, Pune
73As per PF act sec 2b, basic wages definition is given.
Now the limit of PF wage is increased from 6500 to 15000 ( Notification yet to receive ).
If you are deduction PF below Rs 15000/- and the salary of the member is higher than the wages you have shown, you have to certify that how the same is not PF wages.
PF wages are only excluded with HRA, Bonus, Overtime Allowance, Commission or any other similar allowance payable to employee.
Means all emoluments are covered under PF wages except above items.
Mostly Companies are deducting PF on Basic and DA. Education all, Conveyance, Medical all etc allowance are not taken under PF wages. Until the Mater was limited to Rs. 6500/- wages, and you were deducting on Rs. 6500/-, no query raised from PF office.
Hence be careful to on excluded allowances, why they are not included in PF wages if it is below Rs. 15000/-
Thanks,
Bhat
From India, Pune
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