Dear All,
Since the latest limit for PF is Rs. 15,000, PF contributions stand at 12% of basic and DA. I am interested in understanding if there is a recommended percentage of basic salary to the overall Cost to Company (CTC). For instance, should the basic salary constitute 40% or 50% of the CTC? Your assistance on this matter would be greatly appreciated.
Please help.
From India, Mumbai
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2Since the latest limit for PF is Rs. 15,000, PF contributions stand at 12% of basic and DA. I am interested in understanding if there is a recommended percentage of basic salary to the overall Cost to Company (CTC). For instance, should the basic salary constitute 40% or 50% of the CTC? Your assistance on this matter would be greatly appreciated.
Please help.
From India, Mumbai
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As per PF notification, Basic should be 55% to 60%, not less than this. Pl make sure when you prepare CTC, basic should be in above criteria.
From India, Mumbai
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From India, Mumbai
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Dear Arpan Naik, Pl provide PF if any for basic fixation of 55 to 60% , or any citations from court to that effect, it will be useful fro our professionals
From India
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From India
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Dear All, Here is attached file for PF amendments which may be useful to everyone.
From India, Mumbai
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From India, Mumbai
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Dear Sir, The attached information is our personal opinions , If have any official circular or any notification from PF dept or Govt we be more useful.
From India
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From India
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which PF notification is being referred that prescribes 55%-60% Basic salary in CTC ?
From Australia
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From Australia
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It appears that a lot of changes may be brought about in the labor legislations including ESI and others. I came across a PF directive in Rajasthan asking inspectors to compile a list of all who have deducted PF on Basic Salary of 50% or less of CTC. Though there is no legislation on how much the Basic salary should be as a % of CTC, the above could be indicative of the probability of legislation coming about in the future. Keeping Basic salary above 51% of CTC should be fine.
Raana Jitendra Pratap Singh Head HR, Girnar Software Pvt Ltd
From India, New Delhi
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Raana Jitendra Pratap Singh Head HR, Girnar Software Pvt Ltd
From India, New Delhi
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There is no specific direction in the act that a certain percentage should be kept for basic salary, but bifurcation is done only on the basis of taxation liability. However, it is the accepted and factual view that the basic salary should not be less than the prescribed minimum wage of the state.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Dear Mr. Arpan Ji,
There is no specific percentage of basic, etc., for PF. But there is only a notification stating, "Minimum Wages should not be split," i.e. (Basic + VDA) as notified by the appropriate Government.
Regards,
PBS KUAR
From India, Kakinada
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There is no specific percentage of basic, etc., for PF. But there is only a notification stating, "Minimum Wages should not be split," i.e. (Basic + VDA) as notified by the appropriate Government.
Regards,
PBS KUAR
From India, Kakinada
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Minimum wages- Basic.pdf