Hello Everyone,
I am Jay, As per the recent supreme court judgement we are restructuring the salary structure.
As per the judgement PF will attract on all components other than HRA, VDA, Over time, Production or Incentive Bonus, Leave Encashment, Statutory Bonus.
Now my query is:
1) LTA will attract PF or Not??
2) Example: If Employee A is getting the gross salary of 50,000/-,
3) If I continue the present basic i.e) Rs.20,000/- and remaining salary can I keep it in HRA – Is there any problem as per PF Ac t??, If any one is having any document pertaining to Percentage of Basic & other allowance As Per Act – Please share.
.Components Existing Revised from April
Basic 20,000 20,000
HRA 10,000 30,000
Conveyance 1,600
CCA 13,900
LTA 2,000
Medical 2,000
Education 500
Grand Total 50,000/- 50,000/
4) Example 2:
Employee whose salary is less say 20,000/-
.Components Existing Revised from April
Basic 10,000 15,000
HRA 3,600 5,000
Conveyance 1,600
Other Allowances 4,300
LTA
Medical
Education 500
Grand Total 20,000/- 20,000/
In this example, I will put the minimum wage as basic and remaining as HRA??? (if minimum wage is less than basic I will not change)
Kindly suggest your valuable suggestions on the above and correct me if any of my understanding of the act.
With Best Regards,
Jay
From India, Hyderabad
I am Jay, As per the recent supreme court judgement we are restructuring the salary structure.
As per the judgement PF will attract on all components other than HRA, VDA, Over time, Production or Incentive Bonus, Leave Encashment, Statutory Bonus.
Now my query is:
1) LTA will attract PF or Not??
2) Example: If Employee A is getting the gross salary of 50,000/-,
3) If I continue the present basic i.e) Rs.20,000/- and remaining salary can I keep it in HRA – Is there any problem as per PF Ac t??, If any one is having any document pertaining to Percentage of Basic & other allowance As Per Act – Please share.
.Components Existing Revised from April
Basic 20,000 20,000
HRA 10,000 30,000
Conveyance 1,600
CCA 13,900
LTA 2,000
Medical 2,000
Education 500
Grand Total 50,000/- 50,000/
4) Example 2:
Employee whose salary is less say 20,000/-
.Components Existing Revised from April
Basic 10,000 15,000
HRA 3,600 5,000
Conveyance 1,600
Other Allowances 4,300
LTA
Medical
Education 500
Grand Total 20,000/- 20,000/
In this example, I will put the minimum wage as basic and remaining as HRA??? (if minimum wage is less than basic I will not change)
Kindly suggest your valuable suggestions on the above and correct me if any of my understanding of the act.
With Best Regards,
Jay
From India, Hyderabad
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