Contribution of Provident Fund - pf deduction Doc Download.. CiteHR
CiteHR
 
HOME ANSWERED NEW ABOUT LOGIN
Home > Human Resource Section > Labor & Employee Relations

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 - 
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 - 
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 - 
and IF employee want to contribute 12% on whole 10,000 then employer has to contribute 12% on whole 10,000

Saravana P - 
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 - Contributing Member
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

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, 1255 views)
File Type: doc PF_-_For_Employees.doc (29.0 KB, 1071 views)
File Type: doc PF_-_EXEMPTIONS.doc (73.5 KB, 724 views)
File Type: doc PF_-_DUTIES_OF_EMPLOYER.doc (37.0 KB, 878 views)
File Type: doc benefits_of_PF.doc (47.0 KB, 607 views)
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 - Contributing Member
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%

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

Found This Useful? +Vote Up This Page Via Google.  

Why Vote? User validation is extremely important for good content to prosper.


Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network. Add the url of this thread if you want to cite this discussion.


Explore Topical Knowledge Areas

Interesting Relevant Discussions


DISCUSSSION STATISTICS


4
LIKES

12083
VIEWS

16
REPLIES

PLEASE KEEP YOUR CONDUCT PROFESSIONAL AND POLITE


3M Users, 100K+ Documents & 450K+ Discussions

Share »

Community Support & Professional Insights. Login or Register.
Email/Username     Password  

About Us - Advertise - Contact Us - RSS   On Google+  
All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network