Dear All, This is regarding a PF clarification.
If an employee's basic is 3000 and the increment of 500 is given with retrospective effect for the prior 8 months, what would be PF amount to be deducted in the month when the arrear increment is paid? Is PF limited to 780 due to the fact that the basic pay goes beyond 6.5K or Should we calculate on a monthly basis (500*12%*7)+(3500*12%) and deduct thereon? Pls advice
Thanks
Sahir basha
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