Md Shamsheer Khan
Fianance, Accounts, Tally 9,
A1. If an employee whoes basic is above 6500 and if he wants to become a member of PF he can and once he is a member of PF than employer has to contribute their contribution to PF.
A2.Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension fund and 3.67% goes to PF fund.
Some additional Information in detail:
The PF contribution is 12% of Basic salary from both employee and employer. For the calculation the maximum limit of Basic is Rs 6500/-. It means even if the employee's basic salary is above Rs 6500/- the employer is liable to contribute only on Rs 6500/-, that is Rs 780.
However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. I explain you the various accounts of PF challan.
A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account
PF admin charge = Employer has to pay 1.1 % of basic
EDLIS: Employer has to pay 0.5% of basic
EDLIS admin charge:Employer has to pay 0.01% of basic
Total additional percentage employer has to pay: 1.61% of basic
So employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of basic.
24th November 2009 From India, Mumbai
thanx 4 providing me such a valuable information.
kindly tell me one more thing: as u told that for the calculation of pf contribution from employer side rs 6500 is the maximum limit. so what is the maximum limit of an employee or there is no such limit.( ex- if an employee has a basic salary of rs 10,000 so he will pay 12% of rs 10,000 or 12% or rs 6500)
24th November 2009 From India, Muzaffarpur
Out of the employer contribution of 8.33% to EPS (A/c. no. 10) the maximum amount will be Rs. 541 (8.33% of Rs. 6500)
Say if an employee's basic salary is Rs. 9000 then his EPS account the amount will be credited as 541 (from the employe'r share ) only and the balance of this account will credited to A/c. no. 1 (Pf Account)
26th November 2009 From India, Jamnagar
advice its urgent..
Pls also sent me suggetion /advice on my email
1st November 2018 From India, Pune
I Am Prasanna, As per ESIC act we have to deduct from basic salary i mean gross salary.
some companies don't pay HA, Travel Allowences etc. then how to calculate esic from salary?
If gross salary and net salary is same then how to calculate esic
15th April 2019 From India, Visakhapatnam