Pf

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manju

manju (Querist)
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31 December 2014 In April 2014 A Employee's basic salary is Rs. 8380/-. Should his pf be deduct? plz rply soon

Guest

Guest (Expert)

31 December 2014 What is his total salary..In PF 'basic wage' means total earning of the employee..So dont get confused with Basic Salary

manju

manju (Querist)
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31 December 2014 sir,but pf is deducted on basic salary

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Guest

Guest (Expert)

31 December 2014 What is ‘Basic Wages’ for the purpose of PF
contributions?
The definition of ‘Basic Wages’ has been defined under Section
2(b) of the EPF & MP Act, 1952 as below:
Section 2(b) “basic wages” means all emoluments which are earned by an employee
while on duty or on leave or on holidays with wages in either case in accordance
with the terms of the contract of employment and which are paid or payable in cash
to him, but does not include
i. the cash value of any food concession;
ii. any dearness allowance (that is to say, all cash payments by whatever name
called paid to an employee on account of a rise in the cost of living), houserent
allowance, overtime allowance, bonus, commission or any other
similar allowance payable to the employee in respect of his employment or
of work done in such employment;
iii. any presents made by the employer;
From the above definition it is clear that all the emoluments which
are earned by an employee other than those specifically excluded components
given under clause i, ii & iii, would be the basic wages for the purposes of
contribution under the Act.

manju

manju (Querist)
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31 December 2014 Thanks.but he has no any other emoluments.

Guest

Guest (Expert)

31 December 2014 So u mean he is getting only basic salary..Yes then he is covered under pf act provided his establishment is registered under the pf scheme.