Sophiah Started The Discussion:
We contribute 12% towards PF(out of which 8.33% goes to pension and rest to pf).
we can withdraw the PF amount when we leave the organisation , but what about the pension amount..how do we get that?
Do we receive the pension amount when we leave or what is done with that amount,it remains with the organisation or paid of to the employee?
Your query is a subject matter under Employees'Provident Fund and Miscellaneous Provisions Act,1952 and Schemes. Actually, the employee's contribution (Your contribution ) goes to your P.F.Account. Out of the matching contribution given by the employer, 8.33% subject to a maximum of rs.541/- is diverted towards the Employees' Pension Scheme under the Act. This amount is deposited by the employer every month with the Regional P.F.Commissioner of your area. Upon your transfer or on joining another organisation which is covered under the Act, you should get the amount transfereed to the nearest RPFC by filling up the relevant form (Form 13-A-Revised). The pension under the scheme is payble on attaining the age of 58, even though you may be serving in your organisation beyound this age say up to 60 years.
Hello Ashok, It seems to be the you are right person to clarify my doubt!!! Actually my doubt is like what is the diffference between CTC & gross pay? Regards, Joshi
Thanks for the compliment.
I am not a compensation expert but let me try to throw some light on this.
CTC or cost to the comany is an inclusive concept. It includes, besides the gross pay, several other cost components which the employer incurs on its manpower. Costs incurred towards pension contributions,EL encashment, Gratuity etc which are not paid out to the individual employee on aregular basis but are nevertheless borne by the employer are instances of CTC. Net pay is the actual amount or the cash in hand that you get after the applicable deductions.
KIND ATTN: MR. Ashok Kumar Mishra
I'm a new member to this CiteHR.com and would like to know about PF & ESI. According to my knowledge 12% of contribution (from Employees) on basic salary goes to the PF. And remaining 12% from the Employer.
if basic salary is 25,000 then the contribution from the EMPLOYER is 3,000/-. BUT THERE IS CEILING LIMIT on 6500/-. (or) 780 only.
Please clarify my Doubt.
And also requesting you to give your Contact details along with your E-mail ID.
K. Ravi Kumar.
If I am not wrong, you have caliculated that in a wrong way.The PF will be deducted on the basic salary of the employee but not on the total salary.
I suspect the % are like employee's contribution is 12% on His/Her on basic salary, and employer's is 13.01% or 13.91%.
If I am wrong please correct me!!!!!!
If a person drawing 25,000/- salary per month,from his basic only PF is paid and from gross ESI is paid,and as you mentioned there is a ceiling limit 6500/- but it depends on employer wish,if he is ready to pay for above 10,000/- he has to produce a letter to PF dept and than he can pay PF for employee.
This is K. Ravi Kumar from Hyderabad
Please calrify my doubt regarding provident fund contribution, below i'm giving you some pay detail of my colleague.
House Rent Allowance 7,004.00 (40% of Basic)
Transport Allowance 1,751.00 (10% of Basic)
Performance Incentive 5,253.00 (30% of Basic)
31,518.00 (GROSS SALARY)
P.F = 2101.00
Professional tax = 200
NOW CLEARLY TELL ME THE EMPLOYEES CONTRIBUTION AND AS WELL AS EMPLOYERS CONTRIBUTION.
K. Ravi Kumar.
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