Minimum Basic for Deduction of EPF
This query is : Resolved
08 May 2010
I wanted to know whether there is any slab or ceiling to be considered as minimum amount as basic pay which can be considered for ascertaining pf contribution for an employee whose gross monthly salary is 6500 as per the existing minimum wages rules in Delhi.
is is permissible to fix basic as any amount like 500 or 1000 and rest amount be structured as DA, HRA, medical allowance, commuting allowance etc.?
pls. help me out to get clarity on the issue.
Regadrs,
Sushil Kumar
is is permissible to fix basic as any amount like 500 or 1000 and rest amount be structured as DA, HRA, medical allowance, commuting allowance etc.?
pls. help me out to get clarity on the issue.
Regadrs,
Sushil Kumar
08 May 2010
Yes it is permissible. Wages as defined for PF Calculation:
“Basic wages" means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him but does not include:
(i) the cash value of any food concession;
(ii) any dearness allowance, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance.
(iii) any presents made by the employer;
For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.
Retaining allowance means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working for retaining his services.
“Basic wages" means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him but does not include:
(i) the cash value of any food concession;
(ii) any dearness allowance, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance.
(iii) any presents made by the employer;
For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.
Retaining allowance means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working for retaining his services.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Unregistered suppliers utility
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- ITR 4 and Bank transactions
- TDS AND ITR ISSUE
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
