P.f act query
This query is : Open
01 December 2012
Hi,
If the employees salary exceeds Rs.6500 and if he is existing employee for P.F deduction, then he can have a choose of deducting P.F on whole Basic Wages or Rs.6500.
but in case he chooses to deduct on only Rs.6500 then what will be the P.F amount deduction in following case,
Normal Basic Salary Rs.20000
Month Basic Salary (due to leave taken) Rs. 18000
So my Query is since he pays on only Rs. 6500 his P.F would be 6500*12%=780
OR
18000/20000*6500=5850*12%=702
Thanks in advance
Sweta
If the employees salary exceeds Rs.6500 and if he is existing employee for P.F deduction, then he can have a choose of deducting P.F on whole Basic Wages or Rs.6500.
but in case he chooses to deduct on only Rs.6500 then what will be the P.F amount deduction in following case,
Normal Basic Salary Rs.20000
Month Basic Salary (due to leave taken) Rs. 18000
So my Query is since he pays on only Rs. 6500 his P.F would be 6500*12%=780
OR
18000/20000*6500=5850*12%=702
Thanks in advance
Sweta
03 December 2012
As per law PF factor shall be applied on Rs. 6500/-.
However, it is the sweat wish of both (employee and employer) to contribute on total basic salaries. PF Act allows so. In many cases it is being done.
contact@vkbajaj.co.in
However, it is the sweat wish of both (employee and employer) to contribute on total basic salaries. PF Act allows so. In many cases it is being done.
contact@vkbajaj.co.in
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