tell me one thing that what minimum rate of basic for pf deduction.Is their any rate chart of basic salary or wages for deduction of PF
From India, Ludhiana
From India, Ludhiana
IF MY ORGANIZATION WE PAY WAGES AS MIN WAGES 3000/MONTH OTHER ALLOW 2000/MONTH INCENTIVE RS 4000/MONTH Pls guide me how to calculate PF
From India, Madras
From India, Madras
Dear Sunil
You have deduct PF on Basic+DA part of the salary. There is no chart for this as the Basic+DA(if any) in your comapny would be guided by the States in which you have employed people. You will have to follow the Minimum Wages of each State where your people are employed. In the States Minimum Wages there would be this component of Basic + DA on which you have to pay PF (Employer + Employee share)
Note: In some States, DA component is merged in Basic hence you would only see Basic component. Please dont get confused.
regards
From India, Mumbai
5You have deduct PF on Basic+DA part of the salary. There is no chart for this as the Basic+DA(if any) in your comapny would be guided by the States in which you have employed people. You will have to follow the Minimum Wages of each State where your people are employed. In the States Minimum Wages there would be this component of Basic + DA on which you have to pay PF (Employer + Employee share)
Note: In some States, DA component is merged in Basic hence you would only see Basic component. Please dont get confused.
regards
From India, Mumbai
Dear Sunil
There is also a possibility of another view. You may pay total gross wages as per Minimum Wages Act 1948 and you can ideally keep the basic wages as 60% of Gross Salary. The provident Fund deduction must be @12% Basic + DA. The Provident Fund authorities may take a stand that you have deliberately reduced the basic wages than as prescribed under the Minimum Wages. This can be well answered with a recent judgement of Hon'ble Punjab & Haryana High Court in the matter of Asst. Provident Fund Commissioner V/S G4S Security Services India Ltd.
From India, Mumbai
There is also a possibility of another view. You may pay total gross wages as per Minimum Wages Act 1948 and you can ideally keep the basic wages as 60% of Gross Salary. The provident Fund deduction must be @12% Basic + DA. The Provident Fund authorities may take a stand that you have deliberately reduced the basic wages than as prescribed under the Minimum Wages. This can be well answered with a recent judgement of Hon'ble Punjab & Haryana High Court in the matter of Asst. Provident Fund Commissioner V/S G4S Security Services India Ltd.
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Splitting of minimum wages for PF in abeyance (1).pdf