Employees Provident Fund contribution and calculation - ceiling limit
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Employees Provident Fund contribution and calculation

rakeshtrikha Started The Discussion:

To all my learned freinds and seniors

I am enclosing here Three set of calculations . Please guide me which one is correct?

I request you to also enclose copy of Act/Scheme/rules. I will be really greatful

please see attached document


Attached FilesProvided by community member rakeshtrikha. Join us to learn and grow with your peers.
File Type: doc EE.doc (32.0 KB, 980 views)
mvkate1 - 
Calculation 3rd is correct and appeal may submit to the appellate authority with PF commissioner with the jurisdiction of concerned area.
The DA is part of the overall calculation as per law, & rather instead its all wages which PF Board is trying to cover under the scope of contribution which was recently announced but again kept in abeyance by Labour minister.

Akhil.Gupta - Senior Member
Dear Rakesh,

Please find attached PF calculation as per PF guidelines.

Account 1 (PF) -

Employee Share - 12 %
Employer Share towards PF - 3.67 % + excess of Rs 541

Account 2 (Admin Charges for PF) -

Employee Share - NIL
Employer Share 1.10 %

Account 10 (Pension Fund) -

Employee Share - NIL
Employer Share 8.33 % subject to limit Rs. 541.

Account 21 (Insurance Fund) -

Employee Share - NIL
Employer Share .5 % .

Account 22(Admin Charges for Insurance Fund) -

Employee Share - NIL
Employer Share .01 % .

** If the salary of employee is more than Rs 6500 then the PF Contribution payable by employer is only limited to Rs 6500/- only (or Employer Wish to pay on more) as per Para 2 6 A (2) of PF Scheme, Para #(2) of EPS Scheme and Para 7 of EDLI Scheme.


Attached FilesProvided by community member Akhil.Gupta. Join us to learn and grow with your peers.
File Type: xls PF Calculation.xls (13.5 KB, 784 views)
reetugour - Contributing Member
Hi For PF calculation, employee and employer, both side, you can check the attachment in which PF % is given. Thanks


Attached FilesProvided by community member reetugour. Join us to learn and grow with your peers.
File Type: xls PF Calculation.xls (23.5 KB, 481 views)
sumitk.saxena - Contributing Member
Dear all, greetings for the day, thanks for this nice updation, keep it up. thanks & regards, from, sumit kumar saxena

monika05288@gmail.com - Contributing Member
PF contains 3 major chunks which are as follows:
1. PF
2. Pension
3. Employee Deposit Linked Insurance Scheme (EDLI)

An Employee who is drawing basic salary of Rs. 6500/- per month is covered under the PF, PF is 12% of wages (i.e wages includes BAsic + D.A). In PF both Employer and Employee are required to contribute, the deduction rate is same i.e 12% of wages

of this,

3.67% goes to PF and the balance of 8.33% goes to Pension Fund so, (3.67 + 8.33=12%)

Now, apart from contributing to PF and Pension Employer is also required to contribute towards EDLI and the rate of contribution is 0.5% of wages. The Employee need not contribute any thing towards this scheme, One more benefit from this scheme is, In case of death of the Employee, his/her nominee will get a maximum of Rs.60,000 from this scheme

Apart from this the Employer is also required to pay administrative charges at 1.1% of emoluments towards PF charges abd 0.01% towards EDLI

Akhil.Gupta - Senior Member
Dear Monica,

Keep yourself update as many freshers follow the posted material.

Kindly find below the updates on EDLI Benefit


The 190 th meeting of Central Board of Trustees (EPF) chaired by Union Minister for Labour & Employment Shri Mallikarjuna Kharge has decided on 15.9.2010 to enhance the ceiling limit of EDLI (Employees Deposit Linked Insurance) to Rs. 1,30,000, equivalent to 20 times of salary ceiling limit of Rs. 6500.

On June 18, 2010 this was enhanced from Rs. 60,000 to Rs. 100,000 vide GSR 523(E).





Quote:
Originally Posted by monika05288@gmail.com View Post
PF contains 3 major chunks which are as follows:
1. PF
2. Pension
3. Employee Deposit Linked Insurance Scheme (EDLI)

An Employee who is drawing basic salary of Rs. 6500/- per month is covered under the PF, PF is 12% of wages (i.e wages includes BAsic + D.A). In PF both Employer and Employee are required to contribute, the deduction rate is same i.e 12% of wages

of this,

3.67% goes to PF and the balance of 8.33% goes to Pension Fund so, (3.67 + 8.33=12%)

Now, apart from contributing to PF and Pension Employer is also required to contribute towards EDLI and the rate of contribution is 0.5% of wages. The Employee need not contribute any thing towards this scheme, One more benefit from this scheme is, In case of death of the Employee, his/her nominee will get a maximum of Rs.60,000 from this scheme

Apart from this the Employer is also required to pay administrative charges at 1.1% of emoluments towards PF charges abd 0.01% towards EDLI


Attached FilesProvided by community member Akhil.Gupta. Join us to learn and grow with your peers.
File Type: pdf EDLI Scheme amendment 8.1.11.pdf (382.2 KB, 195 views)
LAWANDE RAMESH - Contributing Member
Sir,
I seen both excel files. Thanks for updates. But as per new pf version 4 which is using pf dept. there is difference between your 1.10% administration charge and version 4's admn charges.
pl. let me know the actual admin.charges.

thanks
ramesh lawande
manager -hr

Quote:
Originally Posted by reetugour View Post
Hi

For PF calculation, employee and employer, both side, you can check the attachment in which PF % is given.

Thanks

Payroll Insights - Contributing Member
CPFC Notification - Employer PF contribution under section 6 is payable only on basic wages (which excludes HRA, Overtime Allowance, Bonus, Commission etc.), dearness allowance (which includes cash value of any food concession) and retaining allowance, if any.
PF Contribution isn't Payable on CTC as per CPFC Notification

Regards,
Arti

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