PF is required to be paid on minimum wages (i.e include basic and special allowance). There are many judgments wherein courts (i think EPFo has issued circular also) have upheld that Minimum wages should not be further bifurcated (basic/da/hra whatever it may be) for payment of PF Contributions.
However, if Minimum wage paid are more than Rs 6500/- then payment of PF contributions may be limited to rs 6500 as per PF Act.
From United States
74However, if Minimum wage paid are more than Rs 6500/- then payment of PF contributions may be limited to rs 6500 as per PF Act.
From United States
Dear All, Please tell can it possible that in same company Basic % may differ person to person? and please let me know ESIC is calculated on basic salary or on gross salary. Regards, Shona
From India, Delhi
From India, Delhi
Dear Sir,
Is there any minimum wage limit for PF deduction of employee?
For example in Chhattishgarh minimum wages for unskilled are Rs. 8450/- p.m for unskilled Suppose if employer divide this wage into two heads i.e. Basic & HRA & Convence i.e. Rs.5070/- & Rs. 2535/- & 845/- respectively. Then on which amount employer is liable to deduct the amount, on basic or gross. Please consider this question as important because it is troubling me for quite some time.
Thanks & Regards,
Dolly sasmal
From India, Bhopal
Is there any minimum wage limit for PF deduction of employee?
For example in Chhattishgarh minimum wages for unskilled are Rs. 8450/- p.m for unskilled Suppose if employer divide this wage into two heads i.e. Basic & HRA & Convence i.e. Rs.5070/- & Rs. 2535/- & 845/- respectively. Then on which amount employer is liable to deduct the amount, on basic or gross. Please consider this question as important because it is troubling me for quite some time.
Thanks & Regards,
Dolly sasmal
From India, Bhopal
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls
Splitting of minimum wages for PF in abeyance (1).pdf