Knowledge Management

Question:
Hi all,
there is a scenario of calculation of PF @ 12% on Rs.6500/- or less only but not the current basic salary even if it over and above Rs.6500/-.
Where it is to be mentioned or how it can be configured.
Can anybody please suggest. it is urgent.
thanks in advance
kashyap
Answer:
It is violation of Indian labor law... PF is statutory in India for all permanant employees irrespective of pay.
Ans 2 your Q is - U have option in IT0581 to select eligible pay.
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Aakool
Answer:
Thank you for your reply.
It is there in the Act. that, the PF Salary is Rs.6500/- on which the contribution can be restricted. or the employer wishes to contribute on the PF salary over and above Rs.6500/-, he can.
However, we have a scenario to pay PF contributions on Rs.6500/- (on PF Salary only). hence, suggest me what settings to be made to deduct @ 12% on Rs.6500/- only from employee and the equal amount to be contributed by the employer.
pl reply urgently.
thanks in adv.
Answer:
Dear All,
We have the following scenarios of PF calculation in Indian Payroll:
1. PF @ 12% on 6500/- is to be deducted for most of the employees.
2. PF @ 12% on 6700/- to Rs.10000/- is to be deducted for some of the employees.
I request my experts to please cooperate & expedite your suggestions for configuration settings for the above scenarios.
PLEASE EXPEDITE AS IT IS VERY URGENT
thanks in advance.