Contribution Of Provident Fund - Pf Deduction
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Contribution Of Provident Fund - Pf Deduction

prathimareddy Started The Discussion:

Hi,

I would like to know what would be the employer contribution towards PF if the basic of an employee is Rs.10000/-. Is it 12% of 10000/-???

I heard that the organisation is liable to contribute towards PF only a maximum of 12% of Rs.7500/-??

I also want to know if the emplyee does not wish to contribute for PF whose basic is more than Rs.7500/-, is it mandatory by the employer to contribute towards PF for the particular employee?

Kindly clarify.

satishraz - Member Since: Sep 2006
Hi!!!

Regarding PF, if the employee basic wages exceeding Rs.6500/-, there is

no liability on the part of employer to pay PF contribution.

If employee joined with less than above basic, continuing service with

more than the basic of Rs.6500/- , employer bound to pay PF contribution

on the Rs.6500/- only (.i.e.Rs.780/-),eventhough his basic salary more

than that.


Hope get clarification on the same.

Satish Raz

satishraz - Member Since: Sep 2006
Hi Prathima, ceiling was 3500/- upto 01.10.94, then revised to 5000/-. Then it revaised to 6500/- from 01.04.1995. and remains same, further there is no amendment. Satish

wagh_umesh - Member Since: Sep 2006
and IF employee want to contribute 12% on whole 10,000 then employer has to contribute 12% on whole 10,000

Saravana P - Member Since: Jun 2008
Hi,I have a doubt reg contribution to PF.My doubts are:1) Is it mandatory on the part of the employer to deduct PF of Rs. 780/- (12% on Rs. 6500[ceiling amount]), from the salary payable to the Employee, even if the BASIC+DA of exceeds Rs. 6500-/.2) Is it mandatory on the part of the employer to contribute Rs. 884.65 (13.61% of Rs. 6500[ceiling amount]) to the PF Fund, even if the BASIC+DA of the employee exceeds Rs. 6500/-Pls clarify my doubts.Regards Saravana

nilendrachand - Member Since: Aug 2007
Dear,

As the Law goes, PF has to be deducted @ 12% on Basic+DA subject to a maximum Basic & DA of 6500 if they are submitting the amount with RPFC. But if a company manages its PF through a trust then it can contribute towards PF at the actual Basic+DA, i.e even if it is more than 6500.

Regards,
Nilendra

shaikhsohail786 - Member Since: May 2008
Dear all, KINDLY FIND NECESSARY FILES ATTACHED ON PF SUBJECT


Attached FilesProvided by community member shaikhsohail786. Join us to learn and grow with your peers.
File Type: doc submisions_of_returns_-_monthly_and_annually.doc (49.0 KB, 1397 views)
File Type: doc PF_-_For_Employees.doc (29.0 KB, 1124 views)
File Type: doc PF_-_EXEMPTIONS.doc (73.5 KB, 765 views)
File Type: doc PF_-_DUTIES_OF_EMPLOYER.doc (37.0 KB, 917 views)
File Type: doc benefits_of_PF.doc (47.0 KB, 637 views)
aditisangam - Member Since: Jan 2008
Hi,
As per the PF act employer has to contribute 12% as well as employee has to contribute 12% of his (Basic+DA) towards PF. I want to know from that 12% there is a break up of 8.33 % and 3.67%. Towards what does the 8.33 % and 3.67 % go to?

Rajeev Verma - Member Since: Apr 2008
Hi Aditi,
Following are the different Heads of the Provident Fund Account, where the money goes.......


Account No1 (PF) ................................. 12% (of Employee Cont. on Basic+D.A.) + [ (12% of employer's Cont.)- (3.67% or 541.00, which ever is minimum) ]

Account No.2 (Admn charges on PF) .......... 1.1 %

Account No.10 (Pension Fund) .................. 8.33% (Subject to Maximum of Rs. 541.00, Limit being Rs.6500.00)

Account No. 21 (EDLI Charges) ................ 0.5 %

Account No. 22 (Admn. charge on EDLI) ...... 0.01%

yogitapandey007 - Member Since: Mar 2008
Hi all City HR members,

thanks to tell me the celling amount of PF Rs. 6,500/-
but my problem is that which act says the celling amount of PF is 6,500/-
actually i want to give a reply to our ex-employee.

plz help me

Yogita



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