Dear Sir, We never can not do it ,my question was if anyone has some other ideas to maintain both side employer as wall as pf compliance then let me know
From India, Shimla
From India, Shimla
Though I am not quite clear about the thrust of the questions I am still trying to address #8 to #11 above making some assumptions. Payment of only HRA may sound a bit bizarre besides falling foul with some other statutes even assuming that the amount paid is above what is prescribed under the Minimum Wages Act that stipulates a Basic Wage and a Special Allowance. The authorities are sure to assume that the amount paid is camouflaged wages and they are not far from truth.
I am also assuming that the questionnaire has a problem with Dearness Allowance that is shown as excluded in the definition of basic wages under Sec. 2 (b). If you read further either the Act or the Case you will realise that DA is getting covered for PF under Sec 6. To my mind it is an anachronism found in the Act itself.
Post the SC judgment the thumb rule to apply is that if you pay any amount across the board without the recipient having to do anything special to earn it (like incentive bonus) it would amount to a "universal" allowance applicable to all attracting PF.
From India, Nasik
8I am also assuming that the questionnaire has a problem with Dearness Allowance that is shown as excluded in the definition of basic wages under Sec. 2 (b). If you read further either the Act or the Case you will realise that DA is getting covered for PF under Sec 6. To my mind it is an anachronism found in the Act itself.
Post the SC judgment the thumb rule to apply is that if you pay any amount across the board without the recipient having to do anything special to earn it (like incentive bonus) it would amount to a "universal" allowance applicable to all attracting PF.
From India, Nasik
Basic salary is the key factor for all components, and HRA can not exceed 40% of basic,
A well knowledge based HR will never allow HR component on just split basis, but will ask the employee to have a short discussion and submit some formal documents to get the benefit of exempted allowance.
HR job profile is not a cyclostyle copy to do, but it needs to get calibrated with all concerned departments, which are related to finance and labor both
A well knowledge based HR will never allow HR component on just split basis, but will ask the employee to have a short discussion and submit some formal documents to get the benefit of exempted allowance.
HR job profile is not a cyclostyle copy to do, but it needs to get calibrated with all concerned departments, which are related to finance and labor both
Dear All,
I am sharing herewith recent SC judgement copy description by EPFO Vadodara chapter, Gujarat for your ready reference.
Hope it will clear all your doubts.
Please contact your regional EPFO office for any doubts with this presentation from EPFO it self.
All the best!!!
From India, Pune
I am sharing herewith recent SC judgement copy description by EPFO Vadodara chapter, Gujarat for your ready reference.
Hope it will clear all your doubts.
Please contact your regional EPFO office for any doubts with this presentation from EPFO it self.
All the best!!!
From India, Pune
Dear All,
there is no way to save Employer and Employee liability
Only Basic : HRA Ratio is Maximum 60:40, or 70:30 if we increase HRA percentage more than 40 EPFO add the diffrence of HRA in Basic Wages and penal them.
there is no way to save Employer and Employee liability
Only Basic : HRA Ratio is Maximum 60:40, or 70:30 if we increase HRA percentage more than 40 EPFO add the diffrence of HRA in Basic Wages and penal them.
Respected All,
Thanks for your valuable suggestion on aforesaid matter . One of my HR know company changed his salary structure after the supreme court judgment which is as beneath .
They simply informed to all employees that w.e.f from 01/04/2019 "Special Allowance ' will be termed as " DEVELOPMENT ALLOWANCE " IN YOUR SALARY STRUCTURE "
Please advice or having the idea related to DEVELOPMENT ALLOWANCE
From India, Shimla
Thanks for your valuable suggestion on aforesaid matter . One of my HR know company changed his salary structure after the supreme court judgment which is as beneath .
They simply informed to all employees that w.e.f from 01/04/2019 "Special Allowance ' will be termed as " DEVELOPMENT ALLOWANCE " IN YOUR SALARY STRUCTURE "
Please advice or having the idea related to DEVELOPMENT ALLOWANCE
From India, Shimla
Dear All,
I also want to know about the development allowance . I saw many companies are doing the same thing if any one having any idea about it kindly share and what % of development allowance we can keep in our salary structure
From India
I also want to know about the development allowance . I saw many companies are doing the same thing if any one having any idea about it kindly share and what % of development allowance we can keep in our salary structure
From India
Hi
I had attended a grievance program in Bangalore regarding the recent changes in the PF and PF assistant commission was the key answer person in the program. He confirmed that HRA components will not attract the PF. Many has raised the question about fixing the HRA percentage. since there is no proper rule for salary structure, he said it will be case to case basis.
as per my knowledge, salary components vary case to case basis. i.e. Salary components will differ where a company located in cities, villages, hilly areas or costal areas. for example, HRA cannot be same for the company which is situated in City and villages. usually in towns Rent will be more. we have to fix HRA more in this places. we have to consider Income Tax treatment also. if HRA is less than the actual rent paid then it will be affected to claim HRA exemption in IT. all these issues only for those who is drawing salary less than 15K. My suggestion is you can fix HRA 20%-40% of gross (24% is safest since Govt organization in Bangalore maintain the same) if you are in town. frankly speaking, PF official has the power to raise the question about your salary components. you should have the proper justification about your policy.
From India, Bengaluru
I had attended a grievance program in Bangalore regarding the recent changes in the PF and PF assistant commission was the key answer person in the program. He confirmed that HRA components will not attract the PF. Many has raised the question about fixing the HRA percentage. since there is no proper rule for salary structure, he said it will be case to case basis.
as per my knowledge, salary components vary case to case basis. i.e. Salary components will differ where a company located in cities, villages, hilly areas or costal areas. for example, HRA cannot be same for the company which is situated in City and villages. usually in towns Rent will be more. we have to fix HRA more in this places. we have to consider Income Tax treatment also. if HRA is less than the actual rent paid then it will be affected to claim HRA exemption in IT. all these issues only for those who is drawing salary less than 15K. My suggestion is you can fix HRA 20%-40% of gross (24% is safest since Govt organization in Bangalore maintain the same) if you are in town. frankly speaking, PF official has the power to raise the question about your salary components. you should have the proper justification about your policy.
From India, Bengaluru
Dear Muhammed Asif,
Our company is situated at panchkula city of we can keep 60% basic of gross salary and 40% hra of gross salary it is admissible or not kindly share if you have any idea about development allowance . i am waiting for your valuable suggestion please
From India
Our company is situated at panchkula city of we can keep 60% basic of gross salary and 40% hra of gross salary it is admissible or not kindly share if you have any idea about development allowance . i am waiting for your valuable suggestion please
From India
Dear Gaurav,
whether the cost of living in your city is more.? as of my knowledge, the city Panchkula is a small city comparatively living cost also will be less(assumption). My suggestion is, you can fix HRA 30%. it is better to consult your PF office regarding HRA and development allowance for more clarity. because they are the authority to inspect your organization.
From India, Bengaluru
whether the cost of living in your city is more.? as of my knowledge, the city Panchkula is a small city comparatively living cost also will be less(assumption). My suggestion is, you can fix HRA 30%. it is better to consult your PF office regarding HRA and development allowance for more clarity. because they are the authority to inspect your organization.
From India, Bengaluru
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
SALARY SHEET CALCULATION.xls