Assistant Engineer, Indian Telephone Industries,
Hr Professional
Ajay Shukla
+3 Others

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Respected all,
Please express yourself generously about the following:-
I have an employee in my company having the basic salary of 6000/- now his basic salary has been revised by 6600/-.
Keeping in view the above please describe about his PF contribution as PF has the exemption limit of 6500/-. What will be the employer liability in this particular case, under the consideration that company has policy to deduct pf only upto 6500.
Vikas Kumar

From India, New Delhi
Chandan Ji thanks for your reply
But query is about his salary increased in basic. If ur marking his basic salary more than 6500 then EPS will be submitted upto 6500/- but what about the PF contribution.
Pls elaborate if you can.
Rgds Vikas

From India, New Delhi
Dear Vikas,
If an employee's salary has enhanced from 6000 to more than 6500, then the contribution of PF can be 12% on his actual salary may be it is 6600 as u stated. e.g 6600*12%=792, but employer's contribution may be restricted to 12% on celling i.s.6500 means 780/- and the contribution towards EPS is positively on 6500/-i.e.541/-from the contribution part of employer and remaining part goes to PF again as employer share, which is worked out for Rs.239/-
Kiran Kale.

From India, Kolhapur
dear freind,
the Act is selient on the issue weather the PF contribution is will continue on the basic pay heigher than 6500/- or not.but it is very clear that you have to cover the employees under PF ACT having salary upto 6500/-

From India, Jamshedpur
Dear Mr. Vikas,
Its a sole discertion of management on the above issue. If the management is ok with the increased basic & paying the PF amount on revised basic then the EPS share will be calculated on the 6500/ i.e. 541 & remaining amount will be credited the EPF account. As we are following the same criteria in our our company.
Nilesh Dev.

From India, Mumbai
Dear Mr. Vikas,
The contribution in pension fund (8.33%) is restricted to 541/- (i.e. 8.33% of 6500/-) under the act and difference between pension fund contribution and PF contribution will be add in PF contribution.
This is choice of employer whether he pay his contribution of full salary (Basic +Da) or restrict it on Rs 6500/-. It is totally depend upon employer's wishes.
But if any employee has contributed his PF in his life, the employer has to be done the same and in your case the said employee would be covered under the act, though he may be restrict on the contribution of Rs.6500/-. PLS SEE FORM-11 OF THE EPF AND MP ACT 1952 FOR FURTHER REFERENCE.
Thanks & Regards,
Ajay Shukla
Labour Law Consultant, Kanpur

From India, Calcutta
Dear Vikas, There is no limit for EPF but for EFP there is a limit of Rs.6500/- means above this salary the limit would e only Rs. 541/-. the excess amount goes to PF account. Regards, Nayan
From India, Pune
Dear Nayan,
There is a ceiling limit on salary of Rs. 6500/. But this is for statutory purpose/requirements. Contribution in excess of ceiling limit is as per employer's descretion. Many of the employers are contributing on actual salary beyon ceiling limit. In such cases pension contribution will be restricted on ceiling Rs. 6500 (contribution Rs. 541) and rest of the full amount will go to individual PF account.

From India, Bangalore
Dear Vikas,
your pf contribution after 6500/- is continue, upto Rs.6500/-for EPF & FPF, it is mandatory, because u r already member before crossing the limit, but if your employer give permission to contribute to more than the prescribed limit than FPF contribute upto 6500/-and rest amount goes to your EPF account.

From India, Jodhpur
Sir ,
one query for me.
According to epf law.
up toceiling limit is 6500/-
A/c- 1 - 12% + 3.67%
A/c -2 - 1.10%
A/c - 10 - 8.33%
A/c - 21 - 0.5%
A/c - 22 - .01%
Total contribution 25.61% = 1665 Rs.
now what will be in case of basic salary 10,000/- if we will deduct contribution upto 6500/- what will be for 3500/- please give me information regarding this on email id

From India, Delhi
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