Hello,
I would like to know if the minimum wages should go in the basic head or can we divide them into basic+HRA+conveyance. In my previous company, we kept minimum wages in the basic head, but in the new company, they divide the minimum wages into three categories (i.e., 60% minimum wages in basic, 30% in HRA, and 10% in conveyance), which is not correct as per the law.
Also, the PF ceiling is 15000 now. So, if we divide a salary of 20000 in the above ratio, the basic would be 12000. Hence, the employee will be mandatory in PF. If we increase the basic by 15000, then PF would be optional. So, please advise on how to divide the salary into different heads.
Thanks,
Swati
From India, Delhi
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1I would like to know if the minimum wages should go in the basic head or can we divide them into basic+HRA+conveyance. In my previous company, we kept minimum wages in the basic head, but in the new company, they divide the minimum wages into three categories (i.e., 60% minimum wages in basic, 30% in HRA, and 10% in conveyance), which is not correct as per the law.
Also, the PF ceiling is 15000 now. So, if we divide a salary of 20000 in the above ratio, the basic would be 12000. Hence, the employee will be mandatory in PF. If we increase the basic by 15000, then PF would be optional. So, please advise on how to divide the salary into different heads.
Thanks,
Swati
From India, Delhi
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Dear Swati,
Once you have enrolled an employee in EPF, whether the salary crosses beyond Rs. 15,000/- is not considered. You must deduct the PF and remit it to EPFO with the Employer share. Whoever had the PF Number in their previous organization should also have PF deducted.
Only Freshers and those drawing above Rs. 15,000/- can be exempted after obtaining Form 11 filled and signed by the individual. For supporting the signature, please keep proof of ID (Passport, Driving License, or PAN Card) with the specimen signature.
Thank you.
From India, Kumbakonam
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Once you have enrolled an employee in EPF, whether the salary crosses beyond Rs. 15,000/- is not considered. You must deduct the PF and remit it to EPFO with the Employer share. Whoever had the PF Number in their previous organization should also have PF deducted.
Only Freshers and those drawing above Rs. 15,000/- can be exempted after obtaining Form 11 filled and signed by the individual. For supporting the signature, please keep proof of ID (Passport, Driving License, or PAN Card) with the specimen signature.
Thank you.
From India, Kumbakonam
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Thank you for your valuable reply. Please confirm me one thing that the minimum wages amount is mandatory to keep in basic head or can be divided in basic+HRA+conveyance. Please reply me on this.
From India, Delhi
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From India, Delhi
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Dear Swati,
We should not bifurcate Min. Wages into Basic + HRA + Conveyance. It can only be Basic + DA or only Basic. Bifurcating into other components leads to non-compliance of statutory regulations, as it is a common practice followed by companies to reduce costs.
Thanks & Regards,
Prathap
Senior Executive-HR
Narayana Health.
From India, Madras
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We should not bifurcate Min. Wages into Basic + HRA + Conveyance. It can only be Basic + DA or only Basic. Bifurcating into other components leads to non-compliance of statutory regulations, as it is a common practice followed by companies to reduce costs.
Thanks & Regards,
Prathap
Senior Executive-HR
Narayana Health.
From India, Madras
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I'm sorry, but the input provided seems to be a mix of characters that do not form coherent sentences in English. It appears to be in a different language or encoding format. If you can provide the text in English or clarify the content, I'd be happy to help correct any spelling or grammar errors.
From India, Rudarpur
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From India, Rudarpur
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