Dear members,
Is there any rule to determine the minimum basic for pf contribution under PF act ? what rule says ? If an employee has 15,000/- gross salary per month, what should be the minimum basic so that PF authority does not object during inspection.
Regards,
From India, Delhi
7Is there any rule to determine the minimum basic for pf contribution under PF act ? what rule says ? If an employee has 15,000/- gross salary per month, what should be the minimum basic so that PF authority does not object during inspection.
Regards,
From India, Delhi
Dear Babanaresh & Ruby,
There is no rule for breakup of Gross salary under EPF & MP Act 1952, Breakup of Gross salary will be depend upon your Company policy. How will your company do the breakup of Gross salary?
As per breakup of Gross salary if Basic is upto Rs. 6500/- then you should deduct PF.
If Basic is above Rs. 6500/- then if will be depend upon your Company, whether they want to deduct or not. If company want to deduct on Full basic then they can deduct on full basic or they can deduct upto Rs. 6500/-.
Hope your doubt should be clear by the above explanation.
Regards
Sunil Sharma
From India, New Delhi
There is no rule for breakup of Gross salary under EPF & MP Act 1952, Breakup of Gross salary will be depend upon your Company policy. How will your company do the breakup of Gross salary?
As per breakup of Gross salary if Basic is upto Rs. 6500/- then you should deduct PF.
If Basic is above Rs. 6500/- then if will be depend upon your Company, whether they want to deduct or not. If company want to deduct on Full basic then they can deduct on full basic or they can deduct upto Rs. 6500/-.
Hope your doubt should be clear by the above explanation.
Regards
Sunil Sharma
From India, New Delhi
hi,
Thanks for the detailed reply. It means just avoid the PF, we can keep the basic more than 6500/-. Pl correct if i am wrong as most of the compnay does not want to pay pf contribution.
thanks & Best Regards
Ruby Sharma
From India, Delhi
Thanks for the detailed reply. It means just avoid the PF, we can keep the basic more than 6500/-. Pl correct if i am wrong as most of the compnay does not want to pay pf contribution.
thanks & Best Regards
Ruby Sharma
From India, Delhi
Hi Ruby, You are correct. If you don’t want to deduct PF then you should keep basic more then Rs. 6500/- to avoid the PF liability from the Employer. Regards Sunil Sharma V3S Group
From India, New Delhi
From India, New Delhi
i think even basic + vda crosses Rs6500/- we need not cover under epf.
because we are being asked to pay pf on both basic and vda. so if both put together crosses 6500/- i think we may stop covering under epf.
From India, Vijayawada
because we are being asked to pay pf on both basic and vda. so if both put together crosses 6500/- i think we may stop covering under epf.
From India, Vijayawada
Hi all ..
Before two months i have joined an IT company and i was working as an HR & BDE.i was perfoming well or not i can not say but yes i was trying for the growth of the company.i was facing some issues there as there employee used to pass comments whole working day that what an HR does ?? nothing.one employee who use to come late i dropped a mail him regarding coming late.. yesterday and my Boss did not like it.and today my Boss asked me to leave the comapny.secondly my Boss uesd to pay very low salary to the employees.
i have not get my offer letter and appoinment letter till now and i really could not understand why they asked me to leave company suddenly.They are giving me reason that i am a poor performer and i am the liability of comapny.if it was so then why before this issue everything was fine.and if i dropped a mail then it was my duty.Before this my Boss used to say take care of employee's attendence in Excel sheet,i did the same.but yesterday he said that i said you to keep it in Register.then could somebody suggest me what is the matter..
From India, Gurgaon
Before two months i have joined an IT company and i was working as an HR & BDE.i was perfoming well or not i can not say but yes i was trying for the growth of the company.i was facing some issues there as there employee used to pass comments whole working day that what an HR does ?? nothing.one employee who use to come late i dropped a mail him regarding coming late.. yesterday and my Boss did not like it.and today my Boss asked me to leave the comapny.secondly my Boss uesd to pay very low salary to the employees.
i have not get my offer letter and appoinment letter till now and i really could not understand why they asked me to leave company suddenly.They are giving me reason that i am a poor performer and i am the liability of comapny.if it was so then why before this issue everything was fine.and if i dropped a mail then it was my duty.Before this my Boss used to say take care of employee's attendence in Excel sheet,i did the same.but yesterday he said that i said you to keep it in Register.then could somebody suggest me what is the matter..
From India, Gurgaon
Dear Sir,
The Basic Salary shall be fixed by the Co.
The P.F. Authorities will nothing to do with it. They won"t question anything about Basic salary.
They will see whether the Co. is following the Act and Rules or not.
The maximum Salary for P.F. deduction is Rs.6500 as per Act.
But the management can contribute more also if any understanding is there with union and the
management. There is no bar.
D.Gurumurthy
LL.HR & IR Coknsultant
From India, Hyderabad
The Basic Salary shall be fixed by the Co.
The P.F. Authorities will nothing to do with it. They won"t question anything about Basic salary.
They will see whether the Co. is following the Act and Rules or not.
The maximum Salary for P.F. deduction is Rs.6500 as per Act.
But the management can contribute more also if any understanding is there with union and the
management. There is no bar.
D.Gurumurthy
LL.HR & IR Coknsultant
From India, Hyderabad
No Ruby,
if anybody who is a member of PF, means if he contibuted to pf, you can not stop his PF even if basic+DA+VDA crosses Rs. 6500, you have to deduct upto Rs. 6500.00 it is mandatory as per law, in rajasthan, the minimum pf wage is Rs. 3510.00 as per latest ammendment of labour department, you may check it out from your labour department if there is any provision of mininum pf wage.
Sunil
From India, Bangalore
if anybody who is a member of PF, means if he contibuted to pf, you can not stop his PF even if basic+DA+VDA crosses Rs. 6500, you have to deduct upto Rs. 6500.00 it is mandatory as per law, in rajasthan, the minimum pf wage is Rs. 3510.00 as per latest ammendment of labour department, you may check it out from your labour department if there is any provision of mininum pf wage.
Sunil
From India, Bangalore
Sunil, i got confused becz yesterday I was asking with someone and he told me that if salary of any employee got increased within 1 or 2 years or may be in 2 or 3 months and his basic is more than 6500/- then he can stop to paying the PF contribution as PF liability is upto basic + DA Rs.6500/- (after discussing the mutual understanding) and we can show his details in resigned employees and then again continue in his employment in record, can we do like that. pl advise.
From India, Delhi
From India, Delhi
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Minimum wages- Basic.pdf