For a small private/partnership firm with 15 employees, is it compulsory to set aside PF, medical allowances, and other allowances? Will it be okay if the owner only pays basic salary and the traveling allowance, and only these two are mentioned in the salary slips of employees?
From India, Mumbai
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From India, Mumbai
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Dear Friend,
It is certainly mandatory to deduct PF and other benefits, provided all are within the criteria of laid-down rules. It is not okay to simply pay basic salary and travelling allowance to the employees. The employees should be treated as a part of the organization. As for salary slips, it is proper to issue basic salary, DA, city allowance/HRA, TA particulars if necessary, CCA, Medical allowance, and in some cases, worked out uniform allowance, education allowance, etc. Deductions like EPF, loan deduction, etc., should be reflected. When you are referring to a small private/partnership firm, these items should be reflected. Yet, it is better to be good rather than a mockery.
A typical small firm reflecting exploitation of employees for the benefit of the firm.
Best of luck.
From India, Arcot
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177It is certainly mandatory to deduct PF and other benefits, provided all are within the criteria of laid-down rules. It is not okay to simply pay basic salary and travelling allowance to the employees. The employees should be treated as a part of the organization. As for salary slips, it is proper to issue basic salary, DA, city allowance/HRA, TA particulars if necessary, CCA, Medical allowance, and in some cases, worked out uniform allowance, education allowance, etc. Deductions like EPF, loan deduction, etc., should be reflected. When you are referring to a small private/partnership firm, these items should be reflected. Yet, it is better to be good rather than a mockery.
A typical small firm reflecting exploitation of employees for the benefit of the firm.
Best of luck.
From India, Arcot
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SALARY SHEET CALCULATION.xls