Minimum PF deduction or maximum deduction

Human Resources » Compensation & Benefits

	Message From: shriram_b1	Total Posts: 8	Join Date: 12/04/2009
Rank: Beginner	Post Date: 12/03/2010 05:46:19	Points: 40	Location: India

Dear Professionals,

Which is advantageous to the people, a minimum deduction in PF by fixing a lowest possible Basic of their CTC, or a decent basic?

Few employees suggest, minimum is okay since they know how to invest in other non-statutory schemes and confident of getting a higher returns. Management also will be benefited by this.

In the contrary, few suggest to keep atleast 50% of CTC as basic so that management contribution is more.

Can team suggest the balancing situation?

	Message From: gopud5961	Total Posts: 9	Join Date: 12/04/2009
Rank: Beginner	Post Date: 12/03/2010 13:40:20	Points: 45	Location: India

Dear

There is no specific guideline to fix basic. However PF authorities insist that the retiral components (viz PF, Gratuity) has to be atleast 40% of the CTC. My view is based on the inspection I have undergone during the PF. If you reduce the % the employee is getting affected.

Gopu

	Message From: pankajmehraliugong	Total Posts: 1	Join Date: 12/04/2009
Rank: Beginner	Post Date: 15/06/2011 23:57:47	Points: 5	Location: India