Does PF deduction include Special Allowances (Flexi Benefits)?
I have joined a new company and noticed ambiguity in my pay slip for 3 working days in the joining month.
According to my CTC employer contribution for PF is 1800/- per month
I have changed my PF deduction from default 1800/- to 12%
In my pay slip I noticed that the amount is equal to 24% (12% employee + 12% employer)
I took my concern to HR and they said PF deducted is 12% of basic pay and special allowance.
Unfortunately my basic pay and special allowance are nearly equal. So I'm not sure whether employer pf is also deducted or its my employee pf only when special allowance is also considered.
Because my 24% of my basic and 12% of my basic + special allowance - both are same
When i receive salary next month the 12% will be more than 1800/-
In this case the additional amount for employer contribution will be deducted from my flexi benefits?
From India, Chennai
I have joined a new company and noticed ambiguity in my pay slip for 3 working days in the joining month.
According to my CTC employer contribution for PF is 1800/- per month
I have changed my PF deduction from default 1800/- to 12%
In my pay slip I noticed that the amount is equal to 24% (12% employee + 12% employer)
I took my concern to HR and they said PF deducted is 12% of basic pay and special allowance.
Unfortunately my basic pay and special allowance are nearly equal. So I'm not sure whether employer pf is also deducted or its my employee pf only when special allowance is also considered.
Because my 24% of my basic and 12% of my basic + special allowance - both are same
When i receive salary next month the 12% will be more than 1800/-
In this case the additional amount for employer contribution will be deducted from my flexi benefits?
From India, Chennai
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
SC - PF applicable on special allowances PWC report (1).pdf
SALARY with out PF Deduction.xls