Hello all i wanted to know that as pf ceiling is 6500 bt still people hving sal more than 6500, there is pf deduction in salary. why so? wat is %(employee n employer share) n on wat basis?
From India, Mumbai
From India, Mumbai
Hi Chuggani,
Though the PF cieling limit is 6500.00 but the people those who have more than 6500.00 basic is eligible for the PF deduction. You can deduct their 12% PF on actual basic salary or u consider their basic as a 6500.00 for PF deduction.
But deduction of PF is mandatory as per law, if u have more than 20 employees on roll.
Secondly, 12% is deducted from employees salary which goes directly into PF contribution and 12% from employer share, out of which 8.33% goes to Employees Pension Scheme and 3.67 % goes to again in PF account of employees.
I think above explanation solves ur both the queries.
Thanks,
Amit
From India, Mumbai
7Though the PF cieling limit is 6500.00 but the people those who have more than 6500.00 basic is eligible for the PF deduction. You can deduct their 12% PF on actual basic salary or u consider their basic as a 6500.00 for PF deduction.
But deduction of PF is mandatory as per law, if u have more than 20 employees on roll.
Secondly, 12% is deducted from employees salary which goes directly into PF contribution and 12% from employer share, out of which 8.33% goes to Employees Pension Scheme and 3.67 % goes to again in PF account of employees.
I think above explanation solves ur both the queries.
Thanks,
Amit
From India, Mumbai
Hi Amit,
I have some doubt on the Rs 6500 limit that you have told in your post. Tell me if an employee cross Rs 6500 basic than is it calculated on his actual basic or only Rs 6500. And according to me employee will be given an option to opt for PF if his/her basic is more than Rs 6500.
Clarify and correct me on this.............
Regards
Amith R.
From India, Bangalore
I have some doubt on the Rs 6500 limit that you have told in your post. Tell me if an employee cross Rs 6500 basic than is it calculated on his actual basic or only Rs 6500. And according to me employee will be given an option to opt for PF if his/her basic is more than Rs 6500.
Clarify and correct me on this.............
Regards
Amith R.
From India, Bangalore
Dear Amith,
You are right. Its employees choice whether they opt it for the 6500.00 or on actual basic.
But in some organization, its management policy to curtail the liability expenses that those who have crossed the limit of 6500.00 basic will be considered as a basic 6500.00 for PF deduction. Which we use to follow in my first organization where i worked almost 5 yrs.
I think ur doubt is clear.
Thanks,
Amit
From India, Mumbai
You are right. Its employees choice whether they opt it for the 6500.00 or on actual basic.
But in some organization, its management policy to curtail the liability expenses that those who have crossed the limit of 6500.00 basic will be considered as a basic 6500.00 for PF deduction. Which we use to follow in my first organization where i worked almost 5 yrs.
I think ur doubt is clear.
Thanks,
Amit
From India, Mumbai
dEAR ALL,
if any employee basic is >6500,you said that there is an option for not deducting >6500. But in salary sheet how we will show some employees having <6500 & some having >6500..
If there is an audit through PF employees than they will raise the questions why some emplyees are covered in PF some are not .
plz guide whether we have to deduct the PF where basic salary is >6500. how we will show in salary sheet.
plz mail me regrding this on my id:-
regards
RAJNISH SAPRA
From India, Delhi
if any employee basic is >6500,you said that there is an option for not deducting >6500. But in salary sheet how we will show some employees having <6500 & some having >6500..
If there is an audit through PF employees than they will raise the questions why some emplyees are covered in PF some are not .
plz guide whether we have to deduct the PF where basic salary is >6500. how we will show in salary sheet.
plz mail me regrding this on my id:-
regards
RAJNISH SAPRA
From India, Delhi
thanx amit,
it is clear now bt i also wanted to know that wat is da use of pf ceiling of 6500?
6500 is gross or basic?
if n emp has 16000 as basic salary n his basic is 5600 then pf will b deducted or not
From India, Mumbai
it is clear now bt i also wanted to know that wat is da use of pf ceiling of 6500?
6500 is gross or basic?
if n emp has 16000 as basic salary n his basic is 5600 then pf will b deducted or not
From India, Mumbai
Dear Gaurav
If employee basic salary is more than 6500/- and that specific employee is not earlier the member of provident fund, under such circumstances if employees not desire to become the member of provident fund than he may be treated as “Excluded Employee u/s 2.1.3. Of EPF & MP Act 1952(Para 2 (f) of E.P. Scheme.
But before that you can fill up declaration from those specific employees who are not desire to become the member of P.F.
Regards,
Dipak
If employee basic salary is more than 6500/- and that specific employee is not earlier the member of provident fund, under such circumstances if employees not desire to become the member of provident fund than he may be treated as “Excluded Employee u/s 2.1.3. Of EPF & MP Act 1952(Para 2 (f) of E.P. Scheme.
But before that you can fill up declaration from those specific employees who are not desire to become the member of P.F.
Regards,
Dipak
Dear All,
I would like to bring it in your notice that the PF Limit is Rs.6500/- So employer is boud to pay his contribution on Rs.6500/- Only. If the employer pay on more then it is treat as
Example :
Basic =10000
Employee 12% 1200/-
Employer 12% 1200/-
The contribution will go in Pension Account only 8.33% of Rs. 6500/- i.e. Rs. 541/- rest will go in EPF i.e. Rs. 1859/-
I hope it will clear all your query.
Rgds/Jitender
From India, New Delhi
I would like to bring it in your notice that the PF Limit is Rs.6500/- So employer is boud to pay his contribution on Rs.6500/- Only. If the employer pay on more then it is treat as
Example :
Basic =10000
Employee 12% 1200/-
Employer 12% 1200/-
The contribution will go in Pension Account only 8.33% of Rs. 6500/- i.e. Rs. 541/- rest will go in EPF i.e. Rs. 1859/-
I hope it will clear all your query.
Rgds/Jitender
From India, New Delhi
Hi All,
Provident fund is the sort of Employee benefit which includes both employers and employees contribution. That's why now its practice in many company to deduct the PF from employee's salary and hence, includes in CTC as added advantage, employer also contributing 12%.
Salary ceiling is Rs.6500/- ie less than 6500 deduction is compulsary.
Regards,
Pradnya
Provident fund is the sort of Employee benefit which includes both employers and employees contribution. That's why now its practice in many company to deduct the PF from employee's salary and hence, includes in CTC as added advantage, employer also contributing 12%.
Salary ceiling is Rs.6500/- ie less than 6500 deduction is compulsary.
Regards,
Pradnya
Dear Amit,
Thanks a lot. Will definilty keep in touch with you.
Dear Friends
I would like to know that if an employee quits within six months and wants to apply for PF than wether he should fill up both Form 10c and Form 19 or only Form 10c. According to me it is only Form 10c that should be submitted. Can you clarify me on this...............
Regards
Amith R.
From India, Bangalore
Thanks a lot. Will definilty keep in touch with you.
Dear Friends
I would like to know that if an employee quits within six months and wants to apply for PF than wether he should fill up both Form 10c and Form 19 or only Form 10c. According to me it is only Form 10c that should be submitted. Can you clarify me on this...............
Regards
Amith R.
From India, Bangalore
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PF query.doc
HC All - Trainees not covered for PF -2010.pdf