Amit_goyal_2002
Sap Hr Professional
Eafil.hr
Regional Head-hr
Amitmhrm
Hr Practices
Bjpani
Hr Manager
SASHMITA
Hr Professional
Achuthananda
Asst. Manager - Hr
Ramana Kumar
P & A Manager
Chandrakant
Provident Fund, Esic, Professional Tax, Contract
Mayamathew
Hr Executive
Devendran
Welfare Officer
Bsnegi2004
Service
Dayakar_E
It-recruiter
Jadhavshilpa
Hr Executive
Meen
Hr Professional
Sandeephrd1
Sr.hr Executive
Bhavesh10m
Software Professional
+2 Others

Hi Team I have one doubt regarding EPF. What is the maximum EPF contribute to the employee per month. how many days in a month consider for salary calculation. regards Dayakar
29th March 2007 From India, Bangalore
Dear Dayakar,
For EPF deduction the ceiling basic salary limit is 6500/-. So maximum one can contribute is 780/- only.
If the pay of a member employee increases beyond rs. 6500' after his having become a member, he shall continue to be a member but the contribution payable in respect of him shall be limited to the amount on monthly of rs. 6500/- only.
Regards,
Amit Seth.
29th March 2007 From India, Ahmadabad
Hi Dayakar,

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.

Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension fund and 3.67% goes to PF fund.

For any further further clarification do ask.

Amit Goyal
29th March 2007 From India, Delhi
Mr.Amit goyal, I would like to know the difference between "Pension fund " and "PF fund".Please send the info immediately regards ramana kumar
29th March 2007 From India, Hyderabad
Hi,
Well as per the statutory requirements PF will be calculated only on Rs 6500/- even if the salary is over Rs 6500/-. That is Rs 780/- from both sides plus admin charges as i mentioned in my earlier mail.
Amit Goyal
29th March 2007 From India, Delhi
Dear Ramana,
In the Employees Provident Fund and Miscelleneous Provisions act there are three funds.
1) Employees Provident Fund
2) Employees Pension Fund
3) Employees Deposit Linked Insurance Scheme (EDLIS)
As I mentioned in my earlier mail the contribution percentage goes to each of these funds. As per the accumulations in the PF fund and Pension fund it is payable to the PF member after superannuation. Provident fund amount is payable in one lot while the pension fund amount is payable on monthly basis in the form of pension. (Provided that you have not withdrawn the fund)
In case you withdraw the amount from PF the entire amount of PF and Pension fund is payable with interest.
Amit Goyal
29th March 2007 From India, Delhi
hi amit,
There is limit & also no limit to the PF contribution that depends on the company in which he working
a) if an employees salary (basic wages) is more than Rs.6500 then to we can deduct the Pf on that whole amount our up to the limit that is Rs. 6500/-
b) if an employees salary (basic wages) is more than Rs. 6500/- then it depends on the company to weather deduct his PF or Not if you are not deducting his then Please fill Form No. 11 ( very Important)
Regards
Chandrakant V.
9820592842
(PF , ESIC, Contract labour act & Other Labour laws Consultant)
29th March 2007 From India, New Delhi
Dear Amit,
Very well explained!!
Can you please clarify the counter queries that crossed my mind for this topic
1. What is the significance of EDLIS? Does this get paid to the employee as well? If yes when?
2. Can a member withdraw pension like PF before his superannuation?
3. Does the admin charges of 1.61% go to the PF and EPS bodies?
Rgds,
Shilpa
29th March 2007 From India, Delhi
Hi Shilpa,

1) Under EDLIS the nominee of the PF member will receive the insurance amount. For more info plz follow this link http://epfindia.com <link updated to site home>

2) Yes ofcourse, once a member leaves the organisation he may claim the complete amount accumulated in PF and Pension fund provided he/she has put in atleast 6 months of the service with the organisation. If (S)he leaves before 6 months (S) he will not be paid the pension fund amount. Only PF fund amount will be paid. There is one more clause that an employee should not have joined any other organisation for 2 months after leaving last organisation but this is not followed in general practice because the certificate is to be given by the last emoployer that the said member has not been employed for last 2 months and generally all employer give this certificate after 2 months of leaving. This is not the seperate certificate but part of the PF withdrawal form.

But now Social Security Number is coming into effect. With this SSN every PF member will be given a unique number which will be the PF account number for the whole life regardless of the companies a member changes. Once this is operationalise completely through out INDIA , no member will be able to withdraw the amount before superannuation. Ofcourse there will be a provision of taking loan from the PF funds.

3) First of all complete 1.61% is not admin charges. 0.5% of it is EDLIS contribution which is paid by the employer only. Rest are 1.1% PF admin and % EDLIS admin that too paid by the employer only. Yes these admin charges go to the repective PF and EPS bodies. You cant withdraw any of the parts of 1.61%.

For any further querry feel free to write.

Amit Goyal
30th March 2007 From India, Delhi
If the employee is getting 8000 as basic pay, his pf contribution will be 6500x12% =780 and employer contribution to his account will be 6500x13.61%=885. You need to restrict the calculation on the amount 6500. Any amount above 6500 not needed to take for calculation.
30th March 2007 From India, Kochi
Dear Amit,

Your posts were very informative and valuable.

I have a small query, according to EDLI "14. Deposit-Linked Insurance Fund Account. – The amount received as the employer’s contribution and also the Central Government’s contribution to the Insurance Fund under sub-section 2 and 3 of section 6C shall be credited to an account called the “Deposit-Linked Insurance Fund Account”, and all expenses towards the cost of any benefits provided by or under the Scheme shall be met out of this account.

15. Investment of moneys belonging to the Insurance Fund. – (1) All moneys standing to the credit of the Insurance Fund as on 31st March, 1997 shall be kept in deposit with the Central Government in the Public Account, and the Central Government shall allow interest at a rate not less than 8-1/2 per cent per annum.

(2) The moneys credited as contributions to the Insurance Fund on and from the 1st day of April, 1997 shall be invested as per the investment pattern notified under paragraph 52 of the Employees’ Provident Funds Scheme, 1952."

Quotes that money credited..........shall be invested as per the investment pattern notified.....1952".

Could you please brief about as how can an employee get advantage of the insurance linked.

And how come an employer will link EDLI shceme with LIC or other insurance companies, what are the common procedure followed.

Regards,

Sashmita
30th March 2007 From India, Delhi
hi!
i need ur help to understand the entire process of getting a company registered with PF.
Background:-
We are a new venture cuming up in retail, we are 100% subisdiary company of a 50 yr old company.
our employee strength is 14 today which will soon grew to 20 in a month or so....
Now we are looking to get a P.F code, our register office is at calutta, Now I need to ask u where i should apply for this PF code and what is the process for this.
regards,
EAFIL
31st March 2007 From India, Delhi
Hi
Maximum contribution amount Rs - 6500 ( basic + D.A) As per statutory /salary per month
Salary calculation depends up on wages for worker category =26 days or Staff = 30 days
with regads
devendran.
2nd April 2007
hi friends, can anyone help me how to calculate professional tax and also i want to know how to breakup the salary. Meenu
3rd April 2007 From India, Pune
Dear eafil,
You have to apply for PF code in calcutta region because your HO is there. Second thing, still your present company is subsidary of parent company you can take sub code if you needed.
Although, be cautious that some time PF personnel say that your company is eligable from the date of establishment because your parent company may have more than 20 employee before your subsidary company established.
Regards
3rd April 2007 From India, Nagpur
Hi All,
Employer also can contribute voluntarily on actual (Basic+DA) even if it is more than 6500/-.
Today most of the companies are using Cost to the Company based salary structures, where they they include employer's contribution to PF (on actual basic+DA) in the CTC of their employees.
Regards,
BS
3rd April 2007 From United States, Santa Clara
Dear Friend How is the Family pension amount derived, is there any formula for that ? Regards S. Achuthananda
4th April 2007 From India, Pune
Hi
I have a doubt in employee share. In chellan across the employer share it has 2 columns. Account no 10 and Account no 1. How to fill it . Should i divide the 12% and how? My knowledge say a/c no 10 shows pension fund and 1 shows provident fund. i heard as employee share of 12% goes directly to provident fund. Please guide
5th April 2007 From India, Kochi
Hi to Maya Mathew,
Very nice question & doubt.
You have to left blank A/c. No. 10 column in employee share. I think it is mistake done by the EPFO when making challan format.
Any further query please post.
Regards
Prashant Patil
6th April 2007 From India, Nagpur
mr. Dayakar, Your question is not clear.The amployer 13.61% goes to EPFO , out of them 1.61 is administration charges. And out of 12% dividation is done in 8.33 & 3.67%. Regards Prashant patil
6th April 2007 From India, Nagpur
Mr. Amit,
I just want one more clarification in respect of PF contribution by the employer . As we know the rate of contribution for both the employee & the employer are 12% & 13.61% respectively. I may be made clear whether the balance 1.61 % which is contributed excessively by the employer is deducted from the employee's salary (Basic+D.A.) or contributed by himself / itself. Hope to receive any reply from your end in my following e-mail Id. Thanking you.
[Biswajit Pani]
e-mail ID:
6th April 2007 From India, Bhubaneswar
Mr.Pani
0.5% is for EDLIS contribution this is paid by employer only
1.1% is for PF admin
0.01% is for EDLIS admin charges which is paid by employer
we can'nt withdraw any of this part of 1.61%
These admin chagres directly goes to the EPS & PF bodies.
This is my idea about this topic.
6th April 2007 From India, Bangalore
Hai Divakar,
To my knowledge
The share of Employers contribution of 13.61% is shown below :
8.33 % towards Family Pension Scheme
3.67% towards Provident Fund
1.61% towards administration charges
Regards
S. Achu
7th April 2007 From India, Pune
Hello Mr Pani,
Dayakar has answered ur querry in a very right manner. All of 1.61% is paid by employer only in excess of 12%.
Achu: Dayakar is very right. This 1.61% is bifurcated into various accounts. 0.5 to EDLIS scheme, 1.1% to PF admin charges and 0.01 % to EDLIS admin charges.
Amit Goyal
8th April 2007 From India, Delhi
Hi Achu and Amit,
As per your replies, I see that
8.33 % towards Family Pension Scheme
3.67% towards Provident Fund
1.61% towards administration charges
I think the right value of contribution percentage for Pension scheme and PF needs to be swapped. Actually it is
8.33 % towards Provident Fund
3.67% towards Family Pension Scheme
Please comment.
Rgds,
~Bhavesh
3rd July 2007 From India, Thana
Hi Bhavesh,
No it is true.. Out of 12% from employer contribution, 8.33% goes to Pension fund whereas 3.67% goes to Provident fund.
And employees contribution 12%, completely goes to Provident fund.
Regards,
Amit Seth.
3rd July 2007 From India, Ahmadabad
Hi Amit,
Thnx, but if this is the case then what would you say for the following numbers ?
The data is real and belongs to my salary details back in 1999-2000
My Basic + DA was 8,200
And as per my salary slip,
Employee's contribution = 984 (12% of 8200)
Employer's contribution to Pension = 417
Employer's contribution to PF = 567
According to you, employer contributes more to Pension fund (8.33%), but my salary reveals that
(Employer's contribution to Pension) < (Employer's contribution to PF)
Thnx,
~Bhavesh.
3rd July 2007 From India, Thana
Hi All,
Hope every one in this group have a sound knowledge about Provident Fund.
Considering this point, I, would like to ask 1 simply question---
Is it possible to replace EDLIS with GROUP INSURANCE SCHEME under LIFE INSURANCE Corporation of INDIA under PF act. Waiting for response .........
Thanks
Sandeep

4th July 2007 From India, Delhi
Hi,
Lot of post provide limit for PF contribution as 780 per month i.e. 12% of 6500. Is this limit correct?
As per my understanding the limit for FPF contribution is 8.33% of basic or 8.33% of 6500 per month which ever is lower. So, if Basic salary is more than 6500 and EPF contribution is applicable then :
- employee contribution to EPF = 12% of actual basic and not just Rs. 780/-
- employer contribution EPF = 12% of actual basic minus FPF contribution i.e. Rs 541/- (this is not limited to 3.67% of 6500/- i.e Rs. 239/-)
- employer contribution to FPF = Rs. 541/-
Please clarify.
Regards
Manish
4th July 2007 From India, New Delhi
Dear Amit,
Is it not fully with the discretion of the employee? If the employee don't want any contribution of the employer towards EPS then can we get full amount of PF of our contribution as well as company's.
Please clarify.
Santosh

18th December 2008 From India
Hi,EDLIS admin charge:Employer has to pay 0.01% of basicThis charges are calculated for each employee or on total wagesparesh
24th March 2009
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