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Dear seniors,

i have a few queries which are as follow :

Q1. an employee who is drawing basic salary of rs 6501 or above and he has become a member of provident fund by his/her own wish (as we all know it is not mandatory for such employees to become a member of PF) so please tell me is the employer is liable to pay contribution in respect of these kind of employees? if no then why? also tell example of some establishment where such policies are being practiced.

Q2. under employees provident fund and (miscellaneous provisions) act 1952, we have three funds, i.e. provident fund, pension fund and deposit linked insurance fund. tell me how much contribution are deposited in these funds from employee and employer side.( plz tell me the detail break up of employee and employer 12% contribution)



From India, Muzaffarpur
Freelancer In Hr &indirect Taxes For
Md Shamsheer Khan
Account Admin
Hr Consultant
Fianance, Accounts, Tally 9,
Self Employed
Rizwan Ullah
Project Engineer
+4 Others



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.

From India, Mumbai

dear sir,
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)

From India, Muzaffarpur

one clarification,
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)
best regards,
Mahendra Rana

From India, Jamnagar

Dear Sonu, There is no cap on employees contribution to the fund. As per your example he can contribute 12% of Rs.10000 to the fund.
From India, Madras
Rizwan ullah

Hi, can you please let me know the details of PF how it is benifacial for us and how we can withdrow the amount we deposted in PF account?
From India, Pune

Sir , please give me clarification for this , if the salary it self is 6500 or less can it be break up as 4000 as basic 1500 as convencess and 1000 as special allowance . in 2015 - 2016
From India, Bangalore

No you cont Government has fixed the minimum basic wages is Rs. 7352/- Basic please go through minimum wages act once SALARY CALCULATION SHEET
From India, Bangalore

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Md Shamsheer Khan

बहुत बहुत शुक्रिया
दर्शल मेरे एक दोस्त को जरुरत थी और मुझे तो वैसे आती है पर तुरंत बनाकर भेजना मुमकिन न था तो ये जो नमूना बनाया गया वाकई काबिले तारीफ आफरीन

From India, Gorakhpur

Dear sir,
i am with credit co operative society ltd, looking for the salary calculator valid as per co operative sector. Also looking for sample appointment letter, offer letter and other required documents.
prashant pandya

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