In our company allowance are basic, da, hra, conveyance, medical, child, and special allowance. Pl. Guide me which of allow. Are considered for pf deduction
From India, Mohali
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1From India, Mohali
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Dear Friend, Except HRA, all other allowances considered as Basic.
From India, Mumbai
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From India, Mumbai
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Thanks sir for your prompt reply Can we exclude employee from epf if basic and other allowances more than 15000
From India, Mohali
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From India, Mohali
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Pl. see below example Basic 11125 DA 3894 Conv 890 Special Allow 1720 Gross 17629 Pl. tell me in above case PF applicable or not
From India, Mohali
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From India, Mohali
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if all allowances are more than 15000, in that case PF is to deducted or not
From India, Mohali
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From India, Mohali
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If this is the salary on his joining, then he can be excluded. On the other hand, if he has been a member of PF (existing member), you should continue contributing at least Rs 15,000. This applies to a new joiner whose salary at the time of joining your establishment is more than Rs 15,000 but was a PF member with his previous company and has not withdrawn that PF upon leaving that company.
From India, Kannur
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From India, Kannur
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In the appointment letter, we are mentioning only the Basic salary and Basket. Here, basket means allowances in which employees are claiming as per the convenience of income tax rules, like HRA, Conv., etc.
In this scenario, although we are paying different components (HRA, Conv.) in the salary slip, the same are not mentioned in the appointment letter as we stated above.
Please let us know for the existing employees, can we increase HRA (here basic will remain the same) and merge all other allowances in HRA subject to a maximum of 50% or 40% to overcome the liability of PF.
Regards,
R K Dixit
From India, New Delhi
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In this scenario, although we are paying different components (HRA, Conv.) in the salary slip, the same are not mentioned in the appointment letter as we stated above.
Please let us know for the existing employees, can we increase HRA (here basic will remain the same) and merge all other allowances in HRA subject to a maximum of 50% or 40% to overcome the liability of PF.
Regards,
R K Dixit
From India, New Delhi
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My advice is NO because even HRA, as a component of salary, which is also part of the gross salary earned by an employee while on duty or on leave, should be part of PF qualifying salary. What we have to note is that it is the salary including HRA that is considered for deducing salary if one has taken a few days leave without pay. Or it is the same gross salary including HRA that is paid if he is on leave with pay. That means if he is paid HRA outside the salary, based on the category of city of residence and employee grade, like what is being given to officers of public sector banks, then only it can be excluded from PF qualifying salary.
From India, Kannur
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From India, Kannur
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SUPREME COURT ORDER ON EPF - GWALIOR HIGH COURT.pdf