Provident fund - basic salary.. CiteHR

sonu_xiss Started The Discussion:

dear seniors,

i have a few queries which are as follow :

Q1. an employee who is drawing basic salary of rs 6501 or above and he has become a member of provident fund by his/her own wish (as we all know it is not mandatory for such employees to become a member of PF) so please tell me is the employer is liable to pay contribution in respect of these kind of employees? if no then why? also tell example of some establishment where such policies are being practiced.

Q2. under employees provident fund and (miscellaneous provisions) act 1952,
we have three funds, i.e. provident fund, pension fund and deposit linked insurance fund. tell me how much contribution are deposited in these funds from employee and employer side.( plz tell me the detail break up of employee and employer 12% contribution)


HRCRICUITS -  Member Since: Nov 2009

A1. If an employee whoes basic is above 6500 and if he wants to become a member of PF he can and once he is a member of PF than employer has to contribute their contribution to PF.

A2.Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension fund and 3.67% goes to PF fund.

Some additional Information in detail:

The PF contribution is 12% of Basic salary from both employee and employer. For the calculation the maximum limit of Basic is Rs 6500/-. It means even if the employee's basic salary is above Rs 6500/- the employer is liable to contribute only on Rs 6500/-, that is Rs 780.

However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. I explain you the various accounts of PF challan.

A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account

PF admin charge = Employer has to pay 1.1 % of basic
EDLIS: Employer has to pay 0.5% of basic
EDLIS admin charge:Employer has to pay 0.01% of basic

Total additional percentage employer has to pay: 1.61% of basic

So employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of basic.

sonu_xiss -  Member Since: Sep 2009
dear sir,

thanx 4 providing me such a valuable information.

kindly tell me one more thing: as u told that for the calculation of pf contribution from employer side rs 6500 is the maximum limit. so what is the maximum limit of an employee or there is no such limit.( ex- if an employee has a basic salary of rs 10,000 so he will pay 12% of rs 10,000 or 12% or rs 6500)

mitra2009 -  Member Since: Jan 2009
one clarification,
Out of the employer contribution of 8.33% to EPS (A/c. no. 10) the maximum amount will be Rs. 541 (8.33% of Rs. 6500)
Say if an employee's basic salary is Rs. 9000 then his EPS account the amount will be credited as 541 (from the employe'r share ) only and the balance of this account will credited to A/c. no. 1 (Pf Account)
best regards,
Mahendra Rana

electornic.waste -  Member Since: Nov 2009
Dear Sonu, There is no cap on employees contribution to the fund. As per your example he can contribute 12% of Rs.10000 to the fund.

snehal88 -  Member Since: Mar 2013
I want to pose a question to the learned seniors:

I was working with a company till November 2012 and was a part of the PF scheme. After that till March 15, 2013 I was running my own business. Now I have got a job and joining a company again. My questions are:

1. Can I withdraw the amount of PF from the previous employer?
2. Can I opt for not being a part of the PF Scheme during my new employment?


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