Is PF deduction applicable for basic salary > Rs.10000p.m
CiteHR
 
HOME ANSWERED NEW ABOUT LOGIN
Home > Discussion Boards > Day Life

Is PF deduction applicable for basic salary > Rs.10000p.m

ysnmurty Started The Discussion:

hi to all,

please advise, Is Provident Fund Deduction is applicable for basic salary more than Rs.10000/- p.m.

if so, please inform whom are exempted for P.F. deduction or whatever it is.
please send u r replies to or you can contact me on mobile 98481 38928.

Deepu - Member Since: Dec 2005
Hi Mr Murty, check the discussion "How to calculate PF" under Human Resource Manangement section. This would help you. Deepu

anil kaushik - Member Since: Apr 2006
Dear murthy,
Wge limit under EPF act to cover an employee is Rs.6500/ per month.Any employee drawing wages more than above will be termed as excluded employee provided he is not already a member of PF.if he is already a member of PF then his PF deduction will be on 6500only.
regds
anil kaushik
chief editorBUSINESS MANAGER
09829133699

abhishek_suman - Member Since: Jun 2006
Dear Friend,

According to the Act, The celling for the PF deduction is Rs.6500.00pm. If the Basic is more than Rs.6500.00 then it depends upon the policies of the company. If the company thinks fit than the company can pay employer share.

If the employee does not want to become a member of PF & Pension Fund., in that case employer must take unwillingness from the employee in writing

Narayana Murty - Member Since: Sep 2006
Hi guys,

The wages ceiling of Rs.6500/ is statutory. Employees above the ceiling are not to be covered. But most of the Employers cover their Employees under the Principle of Equity.

I know some of the Employers, are not covering the persons who are in the category of above( the Basi+ DA) is Rs.6500/ and also if the Pay enhanced due to Pay Revision or Incremental effect, the employer recover only upto to the extent of Rs.6500/- only for their employees who are already as PF Subscribers on Rolls.

Hope this clarification clear your doubts upon the same.

With Warm regards,

Narayana Murty BV

Hyderabad Cell No: 9394712629
Tel: :D 040-23431552

harikuttank - Member Since: May 2007
Dear All,
If you look at the PF act, it is clear that deduction of PF above monthly salary of Rs.6500/- ( Basic+DA) is exempted only if he is a newly recruited employee. More clearly, if a person's salary (Basic+DA)was increased from 6000 to 6700 the employee will not be exempted, but he has to pay @12% of 6500, the wage ceiling.
The act also explains that with mutual consent from both parties higher contributions can be paid.
In your question you mentioned only Rs.10000/ pm as salary.
1. if you mean the salary as basic+da for a newly joined employee it is exempted
2. if the basic+da is less than 6500 it is applicable
3. if that is an employee on the roll for past years and if the salary has been increased to 10000 it is again applicable up to the ceiling rate of 6500/-

regards
hari

MaheshLLuthia - Member Since: Mar 2007
The 6500 limit is ESIC, if employee salary is less that 6500 then ESIC is applicable... but these days rarely in good orgns basic salaries are less than 6500... Regards mahesh luthia

Ryan - Member Since: Apr 2007
Mahesh,

There has been a revision in ESIC limits. The limit has been increased to Rs. 10000/- p.m. I understand this happened w.e.f. Oct 2006.

Also, I understand that the employer contribution toward PF need not exceed Rs. 780/- p.m. The employee's contribution will be 12% of basic, but the employee has the option of not paying PF which is more than 780/- p.m.

Regards

Ryan

harikuttank - Member Since: May 2007
There is one more option available as per the PF Act, it is possible for both the employer and employee to pay higher contribution on mutual agreed conditions.
There is no such limit like maximum of Rs.780/- but as an employer you can give more contribution for the benefit of your employee.


REgards

Hari

yadavsachin1978 - Member Since: Jun 2007
Why PF dept will pay interest on higher contribution. In Act, it is clearly mention that when basic & d.a. is above Rs.6500 at the time of joining then he may not become the member for PF. But employers contribution is limited to 12% on Basic & D.A. but employee can increase his share upto 20% but only after prior permission from PF Commissioner.

Without permission, pf dept will not pay interest on extra amount deducted as pf contribution i.e. over & above 12%

Sachin Yadav
EPFO
Mumbai



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

Interesting Relevant Discussions


DISCUSSSION STATISTICS


22967
VIEWS

24
REPLIES

PLEASE KEEP YOUR CONDUCT PROFESSIONAL AND POLITE


3M Users, 100K+ Documents & 450K+ Discussions

Share »

Community Support & Professional Insights. Login or Register.
Email/Username     Password  

About Us - Advertise - Contact Us - RSS   On Google+  
All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network