Hi,
How much impact salary cut has on PF accumulation and gratuity? Is there a formula to calculate it for all?
1 Like
EPF contribution always be as per monthly basic salary , which may differ. So, the answer of your question is YES.
Second, on gratuity it is not impact because it is always calculated on the basis of current basic salary (at the time of leaving the organization)…
2 Likes
If you refer New code on wages and its impact, only half the salary needs to be considered for Basic and DA and as a result, if you are currently considering the whole salary for PF and Gratuity calculation, it will be reduced to half for new employees, if you are particular with deduction in benefits.
Thank you.
1 Like