I agree with Mr Ashokelango. But we may have to get declaration form 11 under para 34 of the scheme.
From India, Madras
4From India, Madras
Dear Khushi,
As per minimum wages act basic salary of the employee should be Rs.3896/-
If basic salary of an employee lies in between 3896 to 6500; Employee PF contribution will be deducted on 100% Basic salary.
If basic salary of an employee is more than 6500, PF will be deducted on Rs.6500/-.
With Warm Regards,
Priyadarshini
From India, Bangalore
As per minimum wages act basic salary of the employee should be Rs.3896/-
If basic salary of an employee lies in between 3896 to 6500; Employee PF contribution will be deducted on 100% Basic salary.
If basic salary of an employee is more than 6500, PF will be deducted on Rs.6500/-.
With Warm Regards,
Priyadarshini
From India, Bangalore
Dear Khushi,
As far as I know no law prescribe how much should be the basic pay for any employee. Leave alone the rest.
Of course for Industrial employees who follow whole sale/Consumer Price Index based DA system there is a component called Fixed and Variable DAs. (Mostly Unionised Estts.) However it is upto you to fix the Basic pay, why not it could be 100 % ?
To support your problem- many estt. follow consolidated remuneration without breaking into other components in which case it will be considered as Basic pay only. Am I correct ?
kumar.s.
From India, Bangalore
As far as I know no law prescribe how much should be the basic pay for any employee. Leave alone the rest.
Of course for Industrial employees who follow whole sale/Consumer Price Index based DA system there is a component called Fixed and Variable DAs. (Mostly Unionised Estts.) However it is upto you to fix the Basic pay, why not it could be 100 % ?
To support your problem- many estt. follow consolidated remuneration without breaking into other components in which case it will be considered as Basic pay only. Am I correct ?
kumar.s.
From India, Bangalore
In my opinion Khushi can definitely keep 100% basic and keep employees exempted from EPF, if basic is above 15,000/- then EPF is not mandatory.
There is no rule which prescribes maximum percentage of basic. Yes Company may pay higher gratuity but that will happen only after five years. Bonus is not mandatory for any one drawing basic above 10,000 PM.
Request elders to comment.
From India, Hyderabad
There is no rule which prescribes maximum percentage of basic. Yes Company may pay higher gratuity but that will happen only after five years. Bonus is not mandatory for any one drawing basic above 10,000 PM.
Request elders to comment.
From India, Hyderabad
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls