06 July 2024
In the context of Provident Fund (PF), "basic salary" refers to the core component of an employee's salary that is considered for calculating PF contributions. It typically includes:
1. **Basic Pay**: This is the fixed component of an employee's salary that is agreed upon in their employment contract. It does not usually include other allowances or overtime pay.
2. **Dearness Allowance (DA)**: Some organizations include DA as part of basic salary for PF calculation purposes, especially if DA is fixed and forms a regular part of the employee's compensation.
3. **Retaining Allowance**: If any retaining allowance is paid by the employer to employees to encourage them to not to leave the organisation
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