PF - Employer Contribution

mahajan22 · 22-09-2009, 10:33 AM

Dear,

There is no such obligations on employer. If employees wants PF on more than 6500 basic then he has to pay 100% from his salary.

Best Regards

Sunny Mahajan

HR- Executive.

sharmaneesu · 22-09-2009, 11:11 AM

Hi All,

in current scenario most of the companies are hiring on th basis of CTC that includes both portion of PF (employee & employer). in such situation there is no point to have ceiling upto 6500/- as all is to be deducted from CTC itself.

Companies which are hiring on cash in hand, can restrict PF upto basic of Rs. 6500/- as per statutory.

Hope I am correct....

regards,
Nishu

surve.sandeep · 22-09-2009, 11:58 AM

as per Central Exices PF department PF is resticted to rs 6500/- on basic salary but its depend upon the employer management that wheather they applicable pf for all or they applicable pf scheme only whoes salary is below Rs 6500/- ( basic) and employee & employer both should contribute ir 12% by both of them another policy i.e. most of PVT LTD companies they deduct emloyer contribution from employee CTC so cant do anything they misguide u at the time of appointment means at the time of CTC structure so be aware abut that

arulprakashd · 22-09-2009, 12:10 PM

As per the act, Employee should contribute 12% of (Basic+DA) and Employer should also contribute 12% of (Basic+DA). But 12% of Employer contribution will be calculated as below

Employee Pension Scheme = (Minimum(PF Wage, 6500)*8.33%)
Employer PF cont = Employee PF - EPS calculated above

Regards,
Arul Prakash D.
Payroll Analyst
Icomm Technologies

Quote:

Originally Posted by arpitamukerjee

As per statutory norms, the PF contribution by the employee and employer have to be the same amount. Either the Co can utilise a ceiling of having both parties (employee & employer) contribute only 780/- per month (in case of employee's basic sal being 6500 or above) or stick to the 12% of the basic sal.

Hope this clarifies.

Executive HR
Kingfisher Airlined Limited
Mumbai

gangapuram · 22-09-2009, 03:56 PM

Dear sir,
Good afternoon
I am Hr Excutive in one of the company. I have full responsibility to facilitates pF and ESI to my employees.
So please tell me the procedure how to approach authorities and send the forms also.

Regards,
Santhosh Kumar.G

Rose_S · 22-09-2009, 04:06 PM

Dear All

In line with the same issue, request a response to the next scenario:

Employer and employee is currently contributing 12% of basic into PF (basic being higher than Rs. 6500/-); and employee now wants to restrict his contribution now to only 12% of Rs. 6500/- basic, ie. Rs. 780/- pm, can this change be done in sal, employer PF contributions being part of CTC.

Purpose behind this request is that the employee wants a higher take home package. [ He will get his the amount from his reduced PF deductions plus the employer's reduced contributions as increased take home (net) sal.]

What are the implications from a statutory standpoint to implementing this change?

Appreciate some inputs on this

regards
Rose S

Kalyan Mitra · 22-09-2009, 06:00 PM

Dear All,

As per statute the company is bound to pay PF contribution upto rs 6500/- but beyond the said amount it is absolutely company's discretion to pay or not to pay the matching amount. There are many companies who are paying PF contribution on basic +DA exceeding Rs 6500/-. It all depends on the Company. Since PF is a social security scheme and also keeping in view the financial distress a person might face at the old age most of the big MNCs pay the PF contribution on actual basic + DA.

S.Chandrasekar · 22-09-2009, 06:15 PM

Hi Bhuvana / Jeeva,

PF is a part of CTC. For that reason when you negotiate your salary for a new job, say, Rs.5 lakh is the annnual CTC, company cannot deduct 24% totally.

There are companies that argue that Ee PF and Er PF contributions are in this cTC that was agreed by employee. That means, Ee 12% and Er 12% are in this CTC and for this reason we cannot 24% totally. Hope you understood.

PF office has come heavily on this that deduction this way is illegal. This topic was spoken on many occasions in this forum.

Regards,
Chandru

sanjay_saha · 22-09-2009, 06:46 PM

Quote:

Originally Posted by arpitamukerjee

As per statutory norms, the PF contribution by the employee and employer have to be the same amount. Either the Co can utilise a ceiling of having both parties (employee & employer) contribute only 780/- per month (in case of employee's basic sal being 6500 or above) or stick to the 12% of the basic sal.

Hope this clarifies.

Executive HR
Kingfisher Airlined Limited
Mumbai

Hi

I am quite satisfy with your explanation but in normal CTC what we offer to our employees, is employer's contribution included in that and if not then how one can maintain the amount from employer contribution as it is with the option with a particular employee whether one would like to go for PF or not.

Please provide me necessary solution in this regard.

Thanks & regards

Sanjay Saha
HR Executive

S.Kumarasubramanian · 23-09-2009, 10:49 AM

You are 100% correct.

Regards,

S.Kumarasubramanian

Quote:

Originally Posted by Rajendra Marathe

Dear Bhuvana,

There is no such resrictions on PF contribution either from employee or employer. There are such companies who pays PF contribution irrespective of Basic Salary.

Now in case of employer contribution, the basic salary is restricted to Rs.6500/- only for Pension Fund contribution.

Regards
Rajendra