No Tags Found!


meenu08
6

Dear Seniors,
In lieu of recent hike of pf ceiling from 6500 to 15000, I would like to know how this is being handled by other companies. Is it being adjusted in the existing CTC of employees or are the companies increasing the CTC of all employees?
HR friend, pls share what is being done in your company.
thanks for your help.
Mini

From India, Faridabad
kulkarni.alok
21

Hi Meenu
It simply means that the employee whose Basic salary is above 6500 and 15000 or less shall be included in the Pf scheme. It does not mean that you have to increase the salary.
Earlier it was optional for the employer to deduct the PF of those employees whose basic salary is above 6500. But most of the companies do cut PF on whatever the basic salary is. Now it is mandatory to Deduct the PF whose basic salary is between 6500 and 1500.
My Introduction:
This is Alok. I am a cite Hr member and have completed my MBA-HR,DLL and now working as HR trainee at Cosmo films public ltd. I will be glad to exchange ideas and share knowledge. As i have recently begun my career in this profession, i am also looking forward for professional networking.
Please feel free to write me at . Would like to know your emailid, so that i can send it from my company mailid.
I would be willing to share HR knowledge and Professional networking.
Regrds

From India, Pune
meenu08
6

Dear Alok,
I appreciate your prompt response. I would like to ask if an employee's CTC is 35,000 with basic 15,000. His PF deduction right now was 780 with company contribution of 885, Net salary: 33335, Gross 34115. Since his eligibility of PF deduction is Rs. 1800 now, and company contribution is also Rs. 1800. Will his Net take home now be Rs 31400 and CTC remains 35,000 or will employee's CTC now increase to Rs. 36800.
I know some companies are not increasing the CTC and are adjusting the entire amount within the same CTC otherwise the cost of the company for all employees will increase tremendously....or in case the CTC is increased now for the company, then that amount which is increased in adjusted in the increment of employees whenever they're due for increment in April
Pls. advise what to do, as the costing of salaries will increase tremendously.
thanks for your help.

From India, Faridabad
kulkarni.alok
21

Dear Meenu,
His CTC does not increase to 36800, his takeway will be 31400 if you have made the deductions correctly(i am relying on your figures). Its simple, you dont have to increase the salary, just that
Pf will have to be deducted on basic if it is 15,000 or less and accordingly the employers share too.
Of course if his basic salary is going beyond 15,000 then u need not deduct on the above amount.
My emailid is . Feel free to write to me. I would able to give my company email id would like to know your email id too.
Regrds,

From India, Pune
jyothimala
2

Hi,
There are few practical questions while implementing this policy.
1) If basic salary of an Employee "A" is less than Rs.15000/-, How do we need to contribute for EPS ? is it 8.33% of the basic pay or Minimum of Rs.1000/- ?
2) If an Employee "B"s total gross salary is Rs.40,000/- and Basic is only Rs.10,000/- (25% of gross is basic) rest of the amount adjusted towards Special Allowance (excluding HRA,Conveyance, PF), how do we need to calculate the pensionable wage ? Do we need to change the calculations from the existing basic of Rs.10,000 to Rs.15000 ?
Experts kindly advice
Regards,
Jyothi

From India, Bangalore
sandyhal
Dear All
I'm also having the same queries.
Since I have been gone through with previoud discussions and observed that such queries was neither asked by anyone nor replied by anyone.
Kindly guide.
Thanks
Sandhya

From India, Gurgaon
prakash006
Hi,
As per the gazette notification dated 22.08.2014 the statutory limit has been raised from Rs.6500/- to Rs.15000/-, hence those employees whose contribution for EPF was restricted by the employer on Rs.6500/- i.e. Rs. 780/- now it has been raised to 12% of Rs.15000/- or on actual basic salary + DA + Concessional Value of Food Allowance which ever is lesser w.e.f. 01.09.2014.

From India, Parel
jyothimala
2

Hi,
Do we need to conclude that EPS contribution as 8.33% of either Rs.15000/- (Rs.1250/-) or 8.33% of < Rs.15000/- (<Rs.1250) which ever is lesser ?
But we need to make sure that the employees basic should never be less than the minimum wages (as applicable to respective state and year).
Regards,
Jyothi

From India, Bangalore
prakash006
Hi,
Contribution for EPS was restricted by the employer i.e. 8.33% of Rs.6500/- i.e. 541/- now has been raised to 8.33% of Rs.15000/- or on actual basic salary + DA which is lesser, irrespective of the minimum wages.

From India, Parel
prathapsvumba
29

Dear Meenu,
I understand your concern, In your case as you told, we employer contribution cannot adjust in CTC, it has to come from employer, hence the CTC will be raised. employee's CTC now increase to Rs. 36800. You said some companies are adjusting in their CTC, which is unfair, and they will face legal complications as the PF authorities will come to inspection to all the organizations to check the implementation part as per the new wage ceiling. In our company also management increased CTC ( 780 to 1800 or 12% on basic whichever is lower). Please follow the same to avoid any legal complications. It should not effect the employees take home salary.
Please let me know you have any other queries regarding this.

From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.






Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.