Dear Amit,
It is advised to have a Minimum wages (Basic+DA) Rs 6500/- for PF calculation.
As per the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 , called the PF Act, the statute which governs Provident Fund (PF) contribution, the PF contribution should be calculated as 12%** of the basic wages plus DA plus cash value of food concession plus retaining allowance, if any, subject to a maximum of Rs.6500/- per month. In case an employee earns more than Rs 6500, they can opt for a higher PF deduction (greater than 12% of Rs 6500) at the joint request of the employee and the employer.
In addition, the PF department contends that the salary for the purpose of PF calculation cannot be lesser than the minimum wages as mandated by the Minimum Wages Act.
Thanks
Srinivasan
Resolve Business Services
From India, Bangalore
4It is advised to have a Minimum wages (Basic+DA) Rs 6500/- for PF calculation.
As per the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 , called the PF Act, the statute which governs Provident Fund (PF) contribution, the PF contribution should be calculated as 12%** of the basic wages plus DA plus cash value of food concession plus retaining allowance, if any, subject to a maximum of Rs.6500/- per month. In case an employee earns more than Rs 6500, they can opt for a higher PF deduction (greater than 12% of Rs 6500) at the joint request of the employee and the employer.
In addition, the PF department contends that the salary for the purpose of PF calculation cannot be lesser than the minimum wages as mandated by the Minimum Wages Act.
Thanks
Srinivasan
Resolve Business Services
From India, Bangalore
After reading all above informations, I analyze that PF can be deduct on both cases:
1. When basic salary is 6500
2. As well as in case of , less than 6500.
But still it is like a debate some professionals are agree for above points, and some are totally disagree.
Regards,
Amit
From India, Delhi
1. When basic salary is 6500
2. As well as in case of , less than 6500.
But still it is like a debate some professionals are agree for above points, and some are totally disagree.
Regards,
Amit
From India, Delhi
Dear Amit,
As Per EPFO MP Act 1952 Section 26 Para 2(b), 70% of your gross to be added as Basic for PF deduction and 30% HRA can be levied irrespective of your pay component. However if the employee earning is 6500 0r below, then the entire gross to be deducted as basic for PF Deduction. You can call me for any clarification if you need on this. 9940126880. I have personally attended many PF meetings on this.
G Sathish
From India, Chennai
As Per EPFO MP Act 1952 Section 26 Para 2(b), 70% of your gross to be added as Basic for PF deduction and 30% HRA can be levied irrespective of your pay component. However if the employee earning is 6500 0r below, then the entire gross to be deducted as basic for PF Deduction. You can call me for any clarification if you need on this. 9940126880. I have personally attended many PF meetings on this.
G Sathish
From India, Chennai
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