In the company I am associated with, we have been contributing to employees' provident fund at a rate of 12% of the basic salary. The basic salary is calculated at 30% of the gross salary. Thus, if an employee's gross salary is 10000, the PF contribution would be 10000*30%*12% = 360 INR.
However, we have been informed by our PF office that the contribution should be 12% of the Gross salary minus HRA. So, if the gross salary is 10000, and the HRA is 1200, the PF contribution would be (10000-1200)*12% = 1056.
Please advise if the above calculation using gross salary minus HRA is correct.
From India, Shillong
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1However, we have been informed by our PF office that the contribution should be 12% of the Gross salary minus HRA. So, if the gross salary is 10000, and the HRA is 1200, the PF contribution would be (10000-1200)*12% = 1056.
Please advise if the above calculation using gross salary minus HRA is correct.
From India, Shillong
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Gross-hra limited to 15k is generally accepted by PF Office.
From India, Chennai
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From India, Chennai
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The law requires you to pay on basic and DA.
Allahabad High Court gave a decision saying that all other allowances, excluding overtime and HRA, are covered in the definition. However, the Supreme Court is hearing an appeal, and the government has put the implementation on hold.
So you are not required to change your procedure at the moment.
From India, Mumbai
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Allahabad High Court gave a decision saying that all other allowances, excluding overtime and HRA, are covered in the definition. However, the Supreme Court is hearing an appeal, and the government has put the implementation on hold.
So you are not required to change your procedure at the moment.
From India, Mumbai
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Pls read following reference which I have come across-
Gujarat, Madhya Pradesh and Madras High Courts have held that all the allowances other than House Rent Allowance will be treated as part of basic wages to attract provident fund contributions. Being aggrieved, some of the employers have filed Special Leave Petition in the Supreme Court vide SLP (C) No.8781-8782/12 under the caption of Surya Roshni Limited. After about 6 years, now the appeals are fixed for final hearing on 03.07.2018. It is pertinent to state here that the Madras High Court in its judgment dated 17.04.2018 in W.P.No.22127 of 2014 titled as M/s.Techset Composition India (P) Ltd., v. The Regional Provident Fund Commissioner-(C&R) has concluded as under:
“The learned counsel for the petitioner states that the 7(A) proceedings had been concluded and a final order has been passed. However, the order so passed need not be implemented till the final disposal of the case pending before the Hon'ble Supreme Court of India cited supra.”
Accordingly, those who are facing such proceedings under sec. 7-A of the Employees Provident Fund and MP Act can take up the plea that till the matters as pending is disposed of by the Supreme Court, no order (when adverse) be implemented.
From India, Pune
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Gujarat, Madhya Pradesh and Madras High Courts have held that all the allowances other than House Rent Allowance will be treated as part of basic wages to attract provident fund contributions. Being aggrieved, some of the employers have filed Special Leave Petition in the Supreme Court vide SLP (C) No.8781-8782/12 under the caption of Surya Roshni Limited. After about 6 years, now the appeals are fixed for final hearing on 03.07.2018. It is pertinent to state here that the Madras High Court in its judgment dated 17.04.2018 in W.P.No.22127 of 2014 titled as M/s.Techset Composition India (P) Ltd., v. The Regional Provident Fund Commissioner-(C&R) has concluded as under:
“The learned counsel for the petitioner states that the 7(A) proceedings had been concluded and a final order has been passed. However, the order so passed need not be implemented till the final disposal of the case pending before the Hon'ble Supreme Court of India cited supra.”
Accordingly, those who are facing such proceedings under sec. 7-A of the Employees Provident Fund and MP Act can take up the plea that till the matters as pending is disposed of by the Supreme Court, no order (when adverse) be implemented.
From India, Pune
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