If the Minimum wage for the state is 15000 and we create the package with a Basic of 8000, HRA 4000 & SPL Allowance of 3000, how much PF are we required to pay to the resource for the month?
From India, Delhi
From India, Delhi
Rs 1800 being 12% of the total wages should be paid as PF. This is because of the following reasons:
1. PF is payable on total wages as per contract of employment with the employee.
2. Total wages as per contract of employment can not be less than the statutory minimum wages fixed by the government
3. HRA to be excluded from the scope of wages should be a compensatory allowance. a compensatory allowance is payable only to those employees who are eligible to it. An employee who is residing in a rented house, and whose spouse is not in receipt of similar HRA from his/ her employer only is entitled to get HRA. Therefore, if you pay HRA to all employees then that amount will be treated as part of wages only.
4. When an employee is paid HRA, the same is not paid along with wages but it will be paid as allowance either directly to the landlord or as reimbursement. Moreover, the amount of HRA is fixed for a period and is paid in full even if the employee has been absent for a few days in the month. In private companies, when an employee takes a single day leave without pay, the HRA is also proportionately deducted. hence it is part of wages.
5, Same thing applies to special allowance also. Special allowance paid to some special category of workers who have to put some special skill or take some risk in performing their duties only shall be given special allowance. If it is given to all employees, the same will be part of wages.
Therefore, pay PF on the entire amount of salary if it is not more than Rs 15000
From India, Kannur
42931. PF is payable on total wages as per contract of employment with the employee.
2. Total wages as per contract of employment can not be less than the statutory minimum wages fixed by the government
3. HRA to be excluded from the scope of wages should be a compensatory allowance. a compensatory allowance is payable only to those employees who are eligible to it. An employee who is residing in a rented house, and whose spouse is not in receipt of similar HRA from his/ her employer only is entitled to get HRA. Therefore, if you pay HRA to all employees then that amount will be treated as part of wages only.
4. When an employee is paid HRA, the same is not paid along with wages but it will be paid as allowance either directly to the landlord or as reimbursement. Moreover, the amount of HRA is fixed for a period and is paid in full even if the employee has been absent for a few days in the month. In private companies, when an employee takes a single day leave without pay, the HRA is also proportionately deducted. hence it is part of wages.
5, Same thing applies to special allowance also. Special allowance paid to some special category of workers who have to put some special skill or take some risk in performing their duties only shall be given special allowance. If it is given to all employees, the same will be part of wages.
Therefore, pay PF on the entire amount of salary if it is not more than Rs 15000
From India, Kannur
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Basic 4 pf.pdf