Dear all, A simple way to know the Provident Fund in the attached document please go through. Regards, PBS KUMAR
From India, Kakinada
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592From India, Kakinada
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In your attachment, you need to edit the 2nd rule of PF. You mentioned that PF is applicable on exceeding 6500, but the actual rule is that it is optional to deduct PF on 6500 and above, and it is compulsory to deduct below 6500.
Regards,
Himanshu Suthar (PF Consultant)
From India, Ahmadabad
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Regards,
Himanshu Suthar (PF Consultant)
From India, Ahmadabad
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At the time of joining, it is also important to fill out Form-11 along with Form-2. Form-11 requires an employee to declare whether they are a previous member of the Employees' Provident Fund with a PF A/c No and provide the name of the previous employer, or declare that they are not a member of the Provident Fund in the past.
Regards,
Gajendra Singh
[Phone Number Removed For Privacy Reasons] (Rajasthan)
From India, Kanpur
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Regards,
Gajendra Singh
[Phone Number Removed For Privacy Reasons] (Rajasthan)
From India, Kanpur
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Importance of Filling Out Form-11 at Joining
At the time of joining, it is also important to fill out Form-11 along with Form-2. Form-11 requires an employee to declare that they were a previous member of the Employees' Provident Fund with PF A/c No and to provide the name of the previous employer, or to declare that they are not a member of the Provident Fund in the past.
Regards,
Gajendra Singh
[Phone Number Removed For Privacy Reasons] (Rajasthan)
From India, Kanpur
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At the time of joining, it is also important to fill out Form-11 along with Form-2. Form-11 requires an employee to declare that they were a previous member of the Employees' Provident Fund with PF A/c No and to provide the name of the previous employer, or to declare that they are not a member of the Provident Fund in the past.
Regards,
Gajendra Singh
[Phone Number Removed For Privacy Reasons] (Rajasthan)
From India, Kanpur
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Hi Himanshu, we are a new setup company in the market. We need to open a PF account for the company as well as for the employees. Can you just help me out with the details and your contact number? The company's current account has been generated, and we are yet to open a salary account for the employees. Please advise me regarding the same.
Thanks and regards,
Sharath Jayaram
[Phone Number Removed For Privacy Reasons] / [Phone Number Removed For Privacy Reasons]
HR Manager
From India, Mumbai
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Thanks and regards,
Sharath Jayaram
[Phone Number Removed For Privacy Reasons] / [Phone Number Removed For Privacy Reasons]
HR Manager
From India, Mumbai
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Of course, you are quite right. Some organizations are restricted to deduct more than Rs. 6500/- (which comes to Rs. 780/- PF) while some are based on the actual Basic wage at 12%. So, it totally depends on the industry. But for social security reasons of the employee, it should be deducted at Rs. 6500/-, which is reasonable.
Regards,
PBS KUMAR
From India, Kakinada
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Regards,
PBS KUMAR
From India, Kakinada
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The details you have entered are correct, but you have missed points in the employer contribution part. It is divided into two parts, i.e., 8.33% for the pension fund and 3.67% for the employee share. However, the pension fund is limited to a maximum of Rs. 541, which is 8.33% of Rs. 6,500. If the employer deducts PF over and above the ceiling limit of Rs. 6,500, then Rs. 541 is the maximum amount that can be contributed towards the Pension Fund.
Example:
Basic + DA = Rs. 10,000
Pension Fund (8.33% / Rs. 541) = Rs. 541
Employee Share (3.67% / balance amount of Rs. 541) = Rs. 659
Regards,
Rakesh Oza
[Phone Number Removed For Privacy Reasons]
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Example:
Basic + DA = Rs. 10,000
Pension Fund (8.33% / Rs. 541) = Rs. 541
Employee Share (3.67% / balance amount of Rs. 541) = Rs. 659
Regards,
Rakesh Oza
[Phone Number Removed For Privacy Reasons]
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Very useful, but if you are a registered PF payer, can new employees earning over Rs 6500 be exempt, or will they too become PF members, requiring us to deduct PF from them? We sometimes get employees earning Rs 10,000/- and above who do not want to contribute to the PF account and prefer a consolidated salary.
Thanks,
AJ.
From India, Chandigarh
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Thanks,
AJ.
From India, Chandigarh
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Dear Mr. Kumar., This is realy good......Now I am very clear about PF with All Form which is apply for different condition. Can you help for the HRM? Awaiting for your response. Rgds/ Monika Kaushal
From India, New Delhi
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From India, New Delhi
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Thank you for providing such important information. Could you please clarify with an example? Additionally, the concept of FPF was launched approximately 2 years ago. For employees who have been working for the last 5-6 years, would it be applicable for all years or only from the date of applicability?
Regards,
PBS KUMAR
From India, New Delhi
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Regards,
PBS KUMAR
From India, New Delhi
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The Contribution of Provident Fund
Ceiling limit is Rs. 6500/-
- Employee Contribution @ 12% on Rs. 6500/- = Rs. 780/-
- Employer Contribution Provident Fund @ 3.67% on Rs. 6500/- = Rs. 239/-
- Employer Contribution Pension Fund @ 8.33% on Rs. 6500/- = Rs. 541/-
So, the total contribution of Employer Contribution on PF is Rs. 780/-
For further clarifications, please see the attached PF-CHECKLIST.
Regards,
PBS KUMAR
From India, Kakinada
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Ceiling limit is Rs. 6500/-
- Employee Contribution @ 12% on Rs. 6500/- = Rs. 780/-
- Employer Contribution Provident Fund @ 3.67% on Rs. 6500/- = Rs. 239/-
- Employer Contribution Pension Fund @ 8.33% on Rs. 6500/- = Rs. 541/-
So, the total contribution of Employer Contribution on PF is Rs. 780/-
For further clarifications, please see the attached PF-CHECKLIST.
Regards,
PBS KUMAR
From India, Kakinada
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Hi Kumar, thanks for the broad info in a simple way!
Query on Provident Fund Calculations
Dear All,
Please let me know if A/c No. 2, 21 & 22 are calculated based on subscriber wages or on employer ceiling wages. In case the subscriber's wages are Rs. 10,000.00 but the employer's ceiling wages are Rs. 6,500.00.
Thanks,
Manjunath.
From India, Bangalore
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Query on Provident Fund Calculations
Dear All,
Please let me know if A/c No. 2, 21 & 22 are calculated based on subscriber wages or on employer ceiling wages. In case the subscriber's wages are Rs. 10,000.00 but the employer's ceiling wages are Rs. 6,500.00.
Thanks,
Manjunath.
From India, Bangalore
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Thank you very much for sharing such a useful file. I want to know, do most people say that PF deduction is applicable to every person from day one of joining, regardless of whether they are receiving a salary of ₹3,500 or ₹35,000?
From India, Delhi
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From India, Delhi
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Dear Sir, you have done great work. It is really easy to understand. Many thanks.
Understanding 'Zone' in the Minimum Wages Act
May I know one piece of information—what does it mean by ZONE in view of the MINIMUM WAGES ACT? I am from Kolhapur, Maharashtra, and need to know the MINIMUM WAGES for a unit registered under the Factory Act 1948 and situated in M.I.D.C., Kagal, and Gokul Shirgaon. Please help me out.
Thanks
From India, Kolhapur
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Understanding 'Zone' in the Minimum Wages Act
May I know one piece of information—what does it mean by ZONE in view of the MINIMUM WAGES ACT? I am from Kolhapur, Maharashtra, and need to know the MINIMUM WAGES for a unit registered under the Factory Act 1948 and situated in M.I.D.C., Kagal, and Gokul Shirgaon. Please help me out.
Thanks
From India, Kolhapur
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Dear PBS, In point no.9 : Form - 19 is for EPF claim & Form - 10 C is for EPS claim or get the pension scheme certificate if the member PF service is more than 10 years. Regards, PvS. SAVIO.
From India, Madras
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From India, Madras
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Thank you for making PF understanding simple. I have a query regarding the ceiling limit of Rs. 6500/-. If an employee has a basic salary of Rs. 10,000/-, what would be the employee and employer contributions to the PF? Is the employer contribution Rs. 780/- or Rs. 1200/-? And, is the employee contribution Rs. 780/- or Rs. 1200/-?
My understanding is that Rs. 780/- (on 6500/-) is the mandatory contribution by both the employee and employer, and anything beyond Rs. 780/- (on above 6500/-) is optional for both parties. Please correct me if I am mistaken.
Thank you in advance.
Regards,
Singh S
From India, Delhi
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My understanding is that Rs. 780/- (on 6500/-) is the mandatory contribution by both the employee and employer, and anything beyond Rs. 780/- (on above 6500/-) is optional for both parties. Please correct me if I am mistaken.
Thank you in advance.
Regards,
Singh S
From India, Delhi
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx