Dear Sir,
I am writing to request clarification regarding the splitting of gross salary, particularly in the context of individuals earning:
1. Rs. 21,000 per month as gross salary
2. Rs. 90,000 per month as gross salary
This query pertains to the consideration of EPFO regulations in such scenarios.
Thank you for your assistance.
Sincerely, [Your Name]
From India, Hyderabad
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I am writing to request clarification regarding the splitting of gross salary, particularly in the context of individuals earning:
1. Rs. 21,000 per month as gross salary
2. Rs. 90,000 per month as gross salary
This query pertains to the consideration of EPFO regulations in such scenarios.
Thank you for your assistance.
Sincerely, [Your Name]
From India, Hyderabad
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Person earning a gross salary of Rs 21,000 per month. Break up:
Basic salary: 10,000
HRA: 5,000
Conveyance allowance: 1,600 (maximum permissible limit for IT exemption purposes)
Other allowances: 4,400
Total: 21,000
In terms of CTC, additionally, you need to contribute 12% of basic salary as the employer's contribution towards EPF (to be bifurcated into EFP and EPF at appropriate rates), plus bonus, plus LTA if applicable. Gratuity, in any case, is payable once an employee completes 5 years of service and should not be shown in CTC to avoid complications.
A similar exercise should be done for a person earning a gross salary of Rs 90,000.
P. Senthilkumar
From India, Chennai
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51Basic salary: 10,000
HRA: 5,000
Conveyance allowance: 1,600 (maximum permissible limit for IT exemption purposes)
Other allowances: 4,400
Total: 21,000
In terms of CTC, additionally, you need to contribute 12% of basic salary as the employer's contribution towards EPF (to be bifurcated into EFP and EPF at appropriate rates), plus bonus, plus LTA if applicable. Gratuity, in any case, is payable once an employee completes 5 years of service and should not be shown in CTC to avoid complications.
A similar exercise should be done for a person earning a gross salary of Rs 90,000.
P. Senthilkumar
From India, Chennai
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Dear P. Senthilkumar,
I would like to draw your attention to the following points regarding the Code on Wages:
1. As per the Code on Wages, the Basic component should not be less than 50% of the gross.
2. The Basic component should not be less than the minimum wage rate as applicable.
Thank you.
From India, Mumbai
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I would like to draw your attention to the following points regarding the Code on Wages:
1. As per the Code on Wages, the Basic component should not be less than 50% of the gross.
2. The Basic component should not be less than the minimum wage rate as applicable.
Thank you.
From India, Mumbai
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Dear GSN1969,
No matter how you split the salary, PF will be attracted on all the components that are paid universally, necessarily, and ordinarily across the board, except for HRA, subject to a maximum of Rs. 15,000. The percentage or quantum of HRA should not raise suspicions of being a camouflage. The allowances should not be disproportionately high compared to the salary.
Thank you.
From India, Mumbai
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No matter how you split the salary, PF will be attracted on all the components that are paid universally, necessarily, and ordinarily across the board, except for HRA, subject to a maximum of Rs. 15,000. The percentage or quantum of HRA should not raise suspicions of being a camouflage. The allowances should not be disproportionately high compared to the salary.
Thank you.
From India, Mumbai
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Splitting of minimum wages for PF in abeyance (1).pdf