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if basic exceeds 6500, suppose basic is 10,000.
then can we put 8.33 % of 10,000 (i.e. rs. 833) towards pension fund ?
( regarding 10,000 basic , employer is paying rs. 1200 /- as his 12%contribution , though 6500 is limit of basic salary for pension scheme but can we contribute there more as our basic increases )
( my question is related specially for pension scheme, so pls reply only on that )
this imp
rakesh

From India, Pune
Dear Mr.Rakesh,
Eventhough basic exceeds above 6500/- you have to pay only Rs.541/- to the pension fund. for example
say basic rs.10000/-
PF-Employee Contribution is Rs.1200/-
Employer Contribution Rs.659/- goes to PF & Rs.541/- goes to EPS.
Regards
MKS

From India, Madras
dear Mr Rakesh
employer's contribtution towards EPS is restricted to Rs.541/- i.e 8.33% of Rs.6500/- only rest of the amount is to be deposited in EPF account. So, even if a person get more than Rs.6500/- his contribution towards epf is limited to rs.541/-
Thnx/srp

From India, Gurgaon
hi all are the pf contribution rate same for all industries at 12% or are employees in different industries charged different rates?
From India, Ahmadabad
An employee can voluntarily opt for an amount which is greater then 12% of basic. But the employer’s contribution will be same i.e. 12%, out of which 8.33% goes to EPS and 3.67 % goes to EPF.
From India, New Delhi
Dear Friend,
I accept and agree all the suggestion you have received that employees getting basic (+DA+cash Value of food) exceeding Rs. 6500 the pension contr. will be max of 8.33 % of 6500 i.e. Rs. 541.
However twice while there was inspection by different PF EO they told me the pension contr.may be more on employer's wish and consent by PF authority, as pension contr. is whole by employer's part.
However I, like several others never taken pain to clarify the things.
rgds
Manish

From India, Lucknow
Dear Manish,
The information given by EO of the pF is wrong, in any of the cases contribution to the pension fund shall not exceed Rs. 540/- 8.33% of the basic maximum Rs. 6500/-. Other the pf office will not accept the annual returns, this is practically faced by me. My Junior before my joining had accounted pension 8.33% of the actual basic e.g Rs. 30000/- , which were never accepted. We had to correct the statement the situation is now as per the pf accounting their is less payment in A/c 1 and excess payment in A/c no. 10 of the pension.
So be clear whatever the basic maximum Rs. 541/- in the pension fund until any further revision or ammedment in the pensionalble salary.
Thanks & Regards
Amal Shere

From India, Mumbai
Dear Rajesh Singh,
If full salary has not paid, then you calculate ceiling salary as prorata basis. For example if a person, drawing a salary of Rs. 10,000 has an attendance of 25 days out of a total of 30 days; then his pension contribution will be 6500x25/30x8.33%. This will be equivalent to Rs. 451.
Abbas

From India, Bangalore
If basic is < 6500 then PF = 12% of basic.
If basic>=6500 then PF has to be 780 employer's contribution, here the employee has the option to opt out of PF.
The interest on PF has increased to 9.5% now.

From India, Delhi
Dear Ganesh Chavan & Riah,
For PF contribution there are two classifications according to the percentage of contribution
1. For brick, beedi, jute, guar gum factories, coir industries other than spinning isector and all sick industries, contribution is 10%
2. For others, contribution is 12%
Also even though there is a statutory ceiling of Rs. 6500 on salary, there is option (in the scheme) for employer and employee to contribute on actual salary in excess of Rs. 6,500.
Abbas.P.S

From India, Bangalore

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