In view of this judgement there are a lot of apprehensions raised by employers and employees abiut their liability and the take home salary. I have put my views about the judgement as interpreted by me. Please follow the link.
https://madhu-t-k.blogspot.com/2019/...ary-and_6.html
Madhu T K
From India, Kannur
4249https://madhu-t-k.blogspot.com/2019/...ary-and_6.html
Madhu T K
From India, Kannur
Dear Mr. Madhu, Went through your blog. Good Read. One more point is that in case of employers" who mention the Employers contribution in their CTC structure, if the employers now decide to restrict the employers' contribution to Rs.15000 wages i.e to Rs.1800 per month, then the employees CTC will go down. Hence they would need to compensate the reduction in some other component, which again would attract PFcontribution. There is a limit to how much an employer can increase the HRA as there are % restrictions according to the HRA Act.
We still need a clarity as to when we need to start implementing the change as per the Supreme Court ruling.
Regards
From India, Mumbai
We still need a clarity as to when we need to start implementing the change as per the Supreme Court ruling.
Regards
From India, Mumbai
In the case of employees whose F contributing salary is already Rs 15000, any addition to special allowance will not make any difference. For example, Your total Salary is Rs 150,000 and your Basic pay on which PF is deducted is Rs 50000. That means Rs 6000 is your employer's contribution included in the CTC, ie, Rs 156000 per month. Now if the employer reduces it to 12% of 15000, then the share will be Rs 1800.Since the CTC of Rs 156000 is already agreed with you, the difference of Rs 4200 will be paid to you by the employer and this can be paid to you under any head because this will not attract PF because the PF is contributed on Rs 15000.
Now it is not necessary that the employer can only contribute on Rs 15000, he can contribute it on any amount and for that there is no limit, in fact.
From India, Kannur
Now it is not necessary that the employer can only contribute on Rs 15000, he can contribute it on any amount and for that there is no limit, in fact.
From India, Kannur
Good read...
I have a query that if an employee's gross is 19000 per month and the salary break up is as given below:
Basic - 10000
HRA - 3000 (30% of Basic)
All Allowances - 6000
How we can restructure or deposit the PF contribution for the above case in current scenario..
Regards
Ramandeep Singh
From India, Pune
I have a query that if an employee's gross is 19000 per month and the salary break up is as given below:
Basic - 10000
HRA - 3000 (30% of Basic)
All Allowances - 6000
How we can restructure or deposit the PF contribution for the above case in current scenario..
Regards
Ramandeep Singh
From India, Pune
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Supreme Court Judgement on LTA.pdf
Judgement by supreme court.zip