Basic salary percentage

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Anil (Querist)
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09 August 2014 Does any law, specially PF Act, prescribe what should be the basic salary component percentage of Total gross salary?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 August 2014 Not defined in any law. For Government organisations Pay Commission fixes salary structure.

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Anil

Anil (Querist)
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09 August 2014 Dear Sir,

Please refer below article:

http://www.financialexpress.com/news/epfo-to-inspect-firms-deducting-pf-on-less-than-50-of-wage/1277517

Why is PF administration inspecting firms where the basic pay ( the amount on which PF is deductible)is less than 50% of total pay ? The PF Act itself is silent on this matter.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 August 2014 Yes Its true act is silent on this. I dont think even PF Authority can dictate anything on this without any rule. It is in the hand of organization to set the salary structure.

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