PF Deduction - Salary Structure

Dear All,

Please help me to understand my pf deduction.

I am working in a Software company, Bangalore, which started 3 yrs back and have 35-40 employees.

My salary structure, Basic- 6000/-, DA-1500/-, house rent-2813/-,conveyance-750/-, communication-750/, medical reimbursement-1250/-,LTA-750/, Company's contribution to PF- 780/-, Special allowances-407/- =15000/-

They had told me in hand salary will be 13000/- . I had joined the company in June 2014 and since then monthly pf deduction is 780+780/- in addition to professional tax and medical insurance premium total deduction was 2000/-, so I used to get 13000/-

And in Sep pf deduction was 1800+1800/- due to change in PF slab in addition to 432/-deduction for medical insurance premium and professional tax. The only change they made in salary structure is they removed special allowances,and LTA is 137/- from Sep.Now in hand salary is 11000/-( which is not as they had told me ). So it right? when I asked about that they said, it will be your money, you will get it.

But my point is I am getting 2000/- less, moreover money value changes, so even though it is my pf but its not in my hand.

Need your valuable inputs.

Thanks

Sabaq

1. If your salary for the purpose of PF calculation is Rs 15,000 per month, what your company has done is quite correct. They have simply restructured your pay by reducing your LTA and Special Allowance. This is to ensure that the increased Employer PF contribution (from Rs 780 to Rs 1800) comes from your salary.
2. I have a small issue with regard to the PF calculation. In the salary, your company will probably have to exclude both HRA and Employer PF while calculating PF. In your case, your PF should be calculated as 12% of Rs 10,387 and not as 12% of Rs 15,000. You can check with them in this regard.

Your PF qualifying salary should be Rs 9000 even at the PFO's demanding side otherwise it should be Rs 7500, ie, basic + DA alone. Therefore, at higher side PF deduction can be Rs 1080 and not more than that. The other components of your salary being HRA (which is exempted from PF), reimbursements and employer's contributions WILL NOT BE taken as salary for the purpose of PF contribution.
Madhu.T.K