I would like to know about the PF deduction process. I am working in an engineering company as an HR. We are deducting PF only on the basic salary at 12%, and we are not including DA in it. I want to know if there is any rule that requires adding DA compulsorily. Also, if we want to set a limit on PF deduction, what is the provision for it? Can you help me solve this query?
Awaiting your reply.
Regards,
Raju
From India, Aurangabad
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Awaiting your reply.
Regards,
Raju
From India, Aurangabad
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Yes, you have to add DA for deducting PF. Basic wage is nothing but Basic + DA.
PF Contribution Requirements
As per the PF Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A., and retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires, i.e., up to 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.
From India, Mumbai
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193PF Contribution Requirements
As per the PF Act, the member has to contribute at the rate of 10% or 12% of his basic pay, D.A., and retaining allowance if any. In case the member wants to contribute more than this, voluntarily he can do so at any rate he desires, i.e., up to 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate.
From India, Mumbai
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Voluntary PF.doc
SALARY with out PF Deduction.xls