Hello All
Good day everybody. I am quite confused about PF deductions. I have read many posts on the internet and some claim that PF deductions has to be done for BASIC + DA (12%) and some tell that PF deductions have to be done only on BASIC (12%).
Which is exactly right ?????
I looked on to the PF rules PDF posted on the internet which clearly tells that it should be BASIC + DA. (12%). Our company does the same. However, employees still feel that their takehome is too low.
I recently looked on to other company's salary slip which was as follows:
BASIC 6700
HRA 4020
CCA 2208
Monthly bonus 292
Gross : 13220
Deductions PF : 804
ESI : 232
Professional Tax : 183
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I never see something like DA. Is this the right deduction. In my company there is BASIC, DA and HRA alone. So we are deducting 12% from basic + da. Please let me know what is the workout or tirck that can be done. Our company is in Chennai. Please advise.
Thanks for your time.
From India, Chennai
Good day everybody. I am quite confused about PF deductions. I have read many posts on the internet and some claim that PF deductions has to be done for BASIC + DA (12%) and some tell that PF deductions have to be done only on BASIC (12%).
Which is exactly right ?????
I looked on to the PF rules PDF posted on the internet which clearly tells that it should be BASIC + DA. (12%). Our company does the same. However, employees still feel that their takehome is too low.
I recently looked on to other company's salary slip which was as follows:
BASIC 6700
HRA 4020
CCA 2208
Monthly bonus 292
Gross : 13220
Deductions PF : 804
ESI : 232
Professional Tax : 183
-------------------------------------------------------------------------------
I never see something like DA. Is this the right deduction. In my company there is BASIC, DA and HRA alone. So we are deducting 12% from basic + da. Please let me know what is the workout or tirck that can be done. Our company is in Chennai. Please advise.
Thanks for your time.
From India, Chennai
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Employees' PF Appellate Tribunal Procedure Rules 1997.pdf
SALARY with out PF Deduction.xls