Our industry has more than 100 laborers and 30 white-collar employees. Can we have two different slabs for basic pay for employees? We propose to set the basic pay at 100% of the gross salary for laborers and 60% for white-collar jobs. Would the provident fund department raise any objections to this?
From India, Hyderabad
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1From India, Hyderabad
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PF contribution is not limited to the Basic Wages alone, but also allowances which are regular in nature. So, EPFO cannot be expected to toe your line.
From India, Mumbai
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From India, Mumbai
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There was a recent rule stating that the basic salary can't be less than 50% of the gross salary. My question is in the context of that rule. I understand that the EPFO can include certain allowances in the eligible amount.
From India, Hyderabad
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From India, Hyderabad
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There is no rule as of date that the Basic should be 50% of the Gross Salary. As per the definition of wages in all labor codes, it will be 50% of Total Remuneration calculated under the definition of wages.
The PF authority has nothing to do with the percentage of Basic with respect to the monthly gross. Moreover, after the verdict of the apex court, PF contribution will also be on other allowances (conditional).
Usually, in most organizations, the percentage of Basic is different in different grades with respect to the monthly gross. This will be common after the implementation of labor codes and as per the definition of wages.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] http://www.usdhrs.in
Regards, S K Bandyopadhyay
From India, New Delhi
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The PF authority has nothing to do with the percentage of Basic with respect to the monthly gross. Moreover, after the verdict of the apex court, PF contribution will also be on other allowances (conditional).
Usually, in most organizations, the percentage of Basic is different in different grades with respect to the monthly gross. This will be common after the implementation of labor codes and as per the definition of wages.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] http://www.usdhrs.in
Regards, S K Bandyopadhyay
From India, New Delhi
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf
Salary Sheet & PF PT Calculation & Challan Nov 2010.xls