21 February 2011
Hi, Am new to the forum and have a question, I was hoping, the experts could provide information for.
The company I work for has a salary structure with about 70% Basic + DA component. We are looking to restructure the salary component to 35-40% basic +DA ( which is more in tune with the market)
What effect does this have on statutory regulations like PF, gratuity etc and what steps do I need to take to update various govt bodies of thie change to ensure a smooth transition from the current salary structure to the proposed one?
I wanted to check on the formalities involved, especially regarding PF. If Im paying x amount per month towards PF for an employee, post change of the salary structure, I'll be payinf a lesser amount. Would this raise any questions from the PF guys and is there any specific method to update the change in the salary structure to the PF authorities?
CAclubindia
