n.divia Started The Discussion:
Hi all,Can anyone tell me, is there any provisions where by employee can contribute only 780(i.e if basic is 6500)even though the basic is more than 6500???Or id it compulsory dat he should contribute 12% of his basic+DA???Cheers,Divya
PF is not calculated with Gross salary. It is calculated with the Basic component of the salary.i.e. a salary consists of Basic, HRA, other allowances, Conveyance etc as components. In this the Basic alone is taken and 12% of that is calculated as PF.
In your friend's case, Rs. 12500 should be his gross salary out of which Rs. 6500 should be his Basic. From this 12% would be Rs. 780 which is deducted as Employee PF.
Thanks all.My friend's basic+DA is 12500 and not the gross.Everyone has posted different replies.Can anyone pls tell me what is as per the law?Is it as per the law that if the employer wishes he can choose to deduct only the min required amount(780)no matter what the actual basic is???
PF act says that you have to deduct 12% of basic +DA if the same is less than 6500 and if it is equal to or more than 6500, we have to deposit 780as PF.
Further, can anybody advice me the amount of voluntary contribution that an employee can do to his own PF account? does that has any limit.
This is regarding renewal of labour licence under central government act (ours is Aviation industry). Initially when we applied for licence total employees 65 and all are engineers and managers. But, now total employees only 15, licence renewal date is in December, please tell me, still do we need to go for renewal of licence ?
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.
Explore Topical Knowledge Areas
Topic Categories >> provident fund pension scheme pension fund pf account basic salary pf inspection pf deduction employers contribution basic pay Location-India-Ahmadabad minimum wages central government job profile provident funds employee share employer share epf scheme advice me Complete List Of Categories
Interesting Relevant Discussions