In our organization, we are deducting PF from the Basic Salary (inclusive of DA). If the salary exceeds Rs. 6500 (>=6500), whether we can deduct PF contribution for an amount of Rs. 6500/- only or for the actuals (for example, Rs. 7250/- as basic salary). Also, on the part of employer contribution, what should be done? Please help.
Regards,
Prabhu R.
From India, Madras
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Regards,
Prabhu R.
From India, Madras
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Hi Prabhu Employee has to pay 12% on his actual Basic+DA but employeer can freeze to 6500 itself.
From India, Madras
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60From India, Madras
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If salary i.e. basic+DA exceeds 6500, then legally you are not bound to pay employer share on full. It is your choice to deduct on 7200 or on 6500. In that case, you can freeze it on 6500.
From India, Delhi
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From India, Delhi
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Dear Prabhu, I agree with MalikJS And Rajsekar, ur management can availed the celling for 6500/- and restrict thereto. Reagards, KIRAN KALE
From India, Kolhapur
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From India, Kolhapur
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Firstly, PF is calculated upon wages (basic + D.A. & Cash Value of food concession + Retaining allowances). The rate of contribution at present is 12% by the employer and employees, 0.5% towards E.D.L.I. contribution, and 1.15% towards administrative charges by the employer.
Let's take an example:
If the wage of A is 6000, then the employer's contribution towards the PF Scheme + Pension Scheme will be 12% of 6000 = 720.
If the wage of A is 6500, then the employer's contribution towards the PF Scheme + Pension Scheme will be 12% of 6500 = 780.
If the wage of A is 7000 (more than 6500), then the employer's contribution towards the PF Scheme + Pension Scheme will still be 12% of 6500 = 780. This means employers are not liable to pay more than 780 when the wage is revised (more than 6500).
From India
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Let's take an example:
If the wage of A is 6000, then the employer's contribution towards the PF Scheme + Pension Scheme will be 12% of 6000 = 720.
If the wage of A is 6500, then the employer's contribution towards the PF Scheme + Pension Scheme will be 12% of 6500 = 780.
If the wage of A is 7000 (more than 6500), then the employer's contribution towards the PF Scheme + Pension Scheme will still be 12% of 6500 = 780. This means employers are not liable to pay more than 780 when the wage is revised (more than 6500).
From India
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Employer-PF-res trict to wages of Rs 6500.pdf