Pf deduction
Rizwan Pathan
(Querist) 22 September 2011
This query is : Resolved
Dear Experts,
Yesterday i met with PF Enforcement officer and when i shown him our salary structure he told that the PF must be deducted on dearness allowance,retaining allowance, + food allowance too. but when i gone through the act i did not found that the food allowances too deducted in PF calculation along with dearness allowance,retaining allowance
I do not having knowledge regarding the said amendment in PF act so please guide me on above subject matte.
Thanks & regards,
Rizwan Pathan
Raj Kumar Makkad
(Expert) 22 September 2011
Wages for the deduction of PF consists following 4 components:
1. Basic pay
2. DA
3. Food Concession, if any
4. Retaining Allowance, if any.
The total amount of aforesaid 4 components shall be restricted to Rs. 6500/- upon which 12% deduction means Rs. 780/- shall be made and equal amount shall be contributed by employer.
Sailesh Kumar Shah
(Expert) 23 September 2011
you have to contribute at the rate of 12% of basic pay, D.A., retaining allowance and food allowance.
Kamal Prasoon Sinha
(Expert) 23 September 2011
I fully endorse the views expressed by Mr.Raj kumar makkad.
Only point I would like to mention is restricting PF contribution to 6500/- depends on the employer and its not a statutory binding and employer can contribute PF on actual basic+DA, which may be more than 6500/-.
Other point is the basic+DA+Food Allw+Retaining Allw. should not be less than the minimum wages as declared by the concerned state govt.
Thanks
Kamal
Kamal Prasoon Sinha
(Expert) 23 September 2011
My message has been submitted twice so deleting 2nd one
Guest
(Expert) 23 September 2011
I agree with Shri Raj Kumar makkad.
