Dear seniors
My question is , PF should be calculated on Basic , how do we ascertain Basic, whether it should be equal to Minimum Wages as per MW notification of the State , or employer can split the MW , one part for Basic other for DA/ Other allowance and PF deduction will be happened on Basic part. I have got one notification on 2011 May, same has been abeyance on 2011, December. Please advice.
From India, Kolkata
161My question is , PF should be calculated on Basic , how do we ascertain Basic, whether it should be equal to Minimum Wages as per MW notification of the State , or employer can split the MW , one part for Basic other for DA/ Other allowance and PF deduction will be happened on Basic part. I have got one notification on 2011 May, same has been abeyance on 2011, December. Please advice.
From India, Kolkata
Yes, that is correct , but if a contractor can split the MW in two parts for calculation of PF liability.
Say, the MW is 6000, Contractor split it in Basic 4000 + Other Allowances 2000 .
He is satisfying MW criteria , but in case of PF , the liability is calculated on 4000 X 12% . Contractor is taking the advantage of PF Act , noting is mentioned.
Regards
From India, Kolkata
Say, the MW is 6000, Contractor split it in Basic 4000 + Other Allowances 2000 .
He is satisfying MW criteria , but in case of PF , the liability is calculated on 4000 X 12% . Contractor is taking the advantage of PF Act , noting is mentioned.
Regards
From India, Kolkata
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc