PF - Employer Contribution

As per law, Employer contribution will be 12%.
Bifurcation:-

8.33% ------- Pension fund . (Calculation on Rs 6500. So maximum will be Rs 541 Per month ).

3.67%-------- Provident fund (on basic + DA of employee's salary).

If suppose, emplyee basic + DA is more than Rs 6500 ,eg, Rs 10,000 than contribution to Pension fund will be Rs 541 than adjusted amount will be transfer to Provident fund amount which will be 659.

Hope this is more clear .

As per PF Act, the PF contribution by the employee and employer have to be the same amount. In this case of employee's sal Should be more than 6500 or above then 12% of the basic salary will be taken for PF Cal from Employee and the Employer will be paying 13.61 % for PF.

Employer 13.61%

Contribution:

3.67% = Provident Fund (A/c No.1)

8.33% = Pension Fund (A/c No.10)

0.5% = EDLIS -Employees Direct Linked Insurance Scheme (A/c No.21)

Administrative Charges:

1.10% of emoluments = Provident Fund (A/c No.2)

0.01% of emoluments = EDLIS (A/c No.22)

Hi Bhuvana,

Mr. Rajendra Marathe is correct,

There is no such type of rules where the basic salary is restricted to Rs, 6500/-, you can contribute your PF contribution on your actual basis salary, if more than Rs. 6500/-. But if your basic salary is more than 6,500 and you are contributing your pf amount on that so your company has to contribute the same amout on your actual basic salary, so it will be more burden on employer to pay more money and also admin charge will be more. So most of the company restricted their PF elligible basic salary to Rs. 6500/-. So it is totally depend on managment rules, how much benifit they want to give their employee.

Rs. 6,500 is restricted for Pension & EDLI part only. The RPFC can provide the Pension & EDLI benifit upto Rs. 6500/- only. You can contribute to Pension account (A/C - 10) upto Rs. 541/- (Rs. 6500 x 8.33%) not more than that.

Regards,

Dibyendu Ghosh

Dear Bhuvana,
Company neednot to pay its contributions more than RS.6500. But in some companies they are contributing on the total salary also.

Hi This is Mahesh here ,
I have applied My PF on 26/06/2009,But till now I have not recived my PF amount my Pf No is 7921 so plz can i get the updation regarding the same

thanks and regards
Mahesh k
9980063726

Hi Mahesh,

Did you submit the forms in PF department or with the earlier employer. If with employer it takes minimum of 90 working days hence there are few process.

If you have submitted in PF department then it should come to you in 30 days, but due to the delay in PF department it takes even more than 2 months.
Any how you better contact to the PF department and ask the status with full PF number or take the acknowledgement with youl
Tell me the company location & the PF office location.

Regards
Jeeva
9343753361

As per P.F Act/ rules, the employer cotribution towards P.F is 12% on basic salary out of which an amount of Rs 541/- on Rs 6500/-@8.33% is paid towards pension fund and the remaining balance of Rs 231/- is adding to employee account(6500x3.67%) even If any employee draws more then Rs 6500/- for month the total cotribution towards Pension Fund is restricted toRs541/-the balance goes to the employees account. here if P.F is restricted to Rs 6500/-the burden of P.F Administrative charges of 1.61% on the total P.F salary is saving to the company. now a days many companies adding the same in the Employees C.TC, hence it is no loss to the companyand the Employee may fell that more amount is adding to his P.F.

hello Bhuvana,

If the employee is Contributing PF on more than 6500/- basic, then even company has to do the same amount of contribution. only if employee also restricted to 6500/-, company can restrict to Rs. 6500/-.

Regards
Kemparaju

Its really nice to see such a discussion and contribution from fellow HR colleagues.
Keep It Up.

The Employer contribution can be restricted to Rs.6500. as per statutory.

Regards,
Saran