Query on PF

Human Resources » Compensation & Benefits

	Message From: boman	Total Posts: 14	Join Date: 20/08/2006
Rank: Executive	Post Date: 09/09/2009 06:45:13	Points: 70	Location: United States

Dear HR Gurus,

A person is demoted on salary for non performance. When his salary comes down will his PF contribution also comes down or else should we maintain the same PF contribution. Kindly let me know ASAP.

With Warm Regards,

Boman

	Message From: srini	Total Posts: 120	Join Date: 20/08/2006
Rank: Leader	Post Date: 09/09/2009 06:46:56	Points: 600	Location: United States

Does his basic come down? PF contribution is a % of basic.

srini

	Message From: roshni ghosh	Total Posts: 15	Join Date: 20/08/2006
Rank: Executive	Post Date: 09/09/2009 06:49:11	Points: 75	Location: United States

boman, PF rules require the contribution should not be reduced but if the salary is reduced, then its appropriate to reduce the contribution. If you are able produce the documents, pf authorities will be satisfied.

hope this clarifies : )

Roshni

	Message From: Jyoti Rani	Total Posts: 65	Join Date: 20/08/2006
Rank: Manager	Post Date: 09/09/2009 10:59:06	Points: 325	Location: United States

Hi, As per me, basic can always be kept same as earlier also it need to be within minimum basic level prescribed for under graduate and graduate, you can try and adjust the difference with other components of the salary.

regards,
Jyoti

	Message From: savi989	Total Posts: 70	Join Date: 20/08/2006
Rank: Manager	Post Date: 10/09/2009 10:37:12	Points: 350	Location: United States

Hi,

Basic Salary should never be reduced irrespective of any fact. Basic should always fall in the range as anniunced time to time state wise according to skills & education Level.

Since you wish to reduce salary due to poor performance try to cut on other pay elements.

Savita

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