If an employee draws a salary of Rs.25000/- with no other allowances it is necessary to deduct pf or option to him / her to have pf ccount or not
From India, Chennai
From India, Chennai
There is no such formal regulation imposing any specific %age of Basic + DA in a Monthly PaySlip Gross Salary. But at some places PF Inspectors are insisting for such %age ranging from 40% to 50%. It is a common practice adopted by many Employers and HR Managers, to keep the Basic + DA at a lowest possible level, as compared to rising monthly gross salary. Purpose is very simple, to keep the PF and other statutory liabilities (Gratuity, Bonus) at minimum. If we look at PF as a useful post retirement benefit and social security tool then such mindset needs to change. I am sure PF and Government Authorities have well noticed this and regulation prescribing specific %age of Basic + DA will be a reality, sooner or latter. Thanks.
From India, Pune
31From India, Pune
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Minimum wages- Basic.pdf