Hi,
At present in our company, the PF is calculated on BASIC (50%) + DA (34%), totaling 84% on gross.
Now, we would like to change the PF calculation only on basic, i.e., 50%, and adjust the pay scale structure.
Please advise me on how to proceed. Can we change our pay scale structure in the middle of the year, or do we need to wait until the next financial year?
I kindly request your assistance in resolving this matter.
Regards,
Sreedevi
From India, Hyderabad
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At present in our company, the PF is calculated on BASIC (50%) + DA (34%), totaling 84% on gross.
Now, we would like to change the PF calculation only on basic, i.e., 50%, and adjust the pay scale structure.
Please advise me on how to proceed. Can we change our pay scale structure in the middle of the year, or do we need to wait until the next financial year?
I kindly request your assistance in resolving this matter.
Regards,
Sreedevi
From India, Hyderabad
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You cannot reduce the PF qualifying salary (salary on which you contribute PF). But if you have been contributing to the PF on an amount above Rs. 15,000, you can bring it down to Rs. 15,000. Below this, you cannot reduce the contributions.
From India, Kannur
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4769From India, Kannur
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What Mr. Madhu T K has been posted, I would like to add that you can change your remuneration structure in the middle of the year, keeping in mind Mr. Madhu's advice.
Instead of Basic and DA, you may consider only Basic (if there is no union agreement or other compulsion) and then other allowances to decide the monthly gross without bringing it below the existing level to dissatisfy the employees.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
USD HR Solutions – To strive towards excellence with effort and integrity
From India, New Delhi
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Instead of Basic and DA, you may consider only Basic (if there is no union agreement or other compulsion) and then other allowances to decide the monthly gross without bringing it below the existing level to dissatisfy the employees.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
From India, New Delhi
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You cannot reduce the wages or salaries of employees for the purpose of computing PF contributions once you have started paying higher wages.
In this connection, please also refer to Section 12 of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952.
From India, Aizawl
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In this connection, please also refer to Section 12 of the Employees' Provident Fund & Miscellaneous Provisions Act, 1952.
From India, Aizawl
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls