Salary breakup - Can salary of 15500/- be shown as Basic+DA = 15000/- and HRA = 500/-?

Can salary of 15500/- be shown as Basic+DA = 15000/- and HRA = 500/-?
Will there be any issues from any authorities regarding the breakup. The employer wants to do it this way so that she does not get PF liability.
5th November 2020 From India, Bengaluru

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nanu1953

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15,000/- Basic will be covered under PF Act. Better to do it 15,100/- Basic+DA and 400/- as HRA. Please check whether there is any HRA Act ( State Act) or not. In some States there is House Rent Allowance Act -minimum 5% of Basic + DA.
ESI will be applicable in this case.
5th November 2020 From India, New Delhi

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