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Minimum PF deduction or maximum deduction

Last post June 15, 2011 23:57 PM by pankajmehraliugong. 1 repiles.

March 12, 2010 05:46 AM 1
Total Posts: 10
Join Date: April 12, 2009
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Post Date: June 15, 2011
Posts: 10
Location: India

Minimum PF deduction or maximum deduction

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?

 

March 12, 2010 01:402
gopud5961
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Post Date: March 12, 2010
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Re: Minimum PF deduction or maximum deduction

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
June 15, 2011 11:573
pankajmehraliugong
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Post Date: June 15, 2011
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Re: Minimum PF deduction or maximum deduction

Dear Friends ,

 

Minimum PF Dedcution on the basis of Basic salary .Employer obilgation up to 6500 that is 780 .