Hi, I am dinesh. I want to know that if the employee’s having basic salary is more than Rs. 6,500/-, p.f. can be deducted or not. what is the statutory binding?
From India, Delhi
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From India, Delhi
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Yeah, Mr. Dinesh, PF can be deducted @ basic + VDA + food allowance * 12%.
But pension fund, under 8.33% of employer share, is deducted on only ₹6500 maximum, and the rest amount is included in 3.67%.
For example, if the salary is ₹10,000, then employee's share deducted @ 12% = ₹1200.
Employer's share in account no. 10 will be deducted @ ₹6500 * 8.33% = ₹541, and the balance amount, ₹1200 - ₹541 = ₹659, will be deposited in account no. 1.
Have a good day.
From India, Delhi
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5But pension fund, under 8.33% of employer share, is deducted on only ₹6500 maximum, and the rest amount is included in 3.67%.
For example, if the salary is ₹10,000, then employee's share deducted @ 12% = ₹1200.
Employer's share in account no. 10 will be deducted @ ₹6500 * 8.33% = ₹541, and the balance amount, ₹1200 - ₹541 = ₹659, will be deposited in account no. 1.
Have a good day.
From India, Delhi
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If the employee is receiving a basic salary of more than Rs. 6,500, the deduction under PF is voluntary. This means that if the employee does not want to contribute, they are free to do so. The same practice is followed in large corporations.
Regards,
From India, Delhi
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Regards,
From India, Delhi
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EPF Membership and Salary Threshold
If he has already been a member of EPF, he is expected to continue the EPF even if his salary is more than Rs 6500. Certainly, for new employees whose salary (Basic + DA) at the time of joining itself is more than Rs 6500, it is optional.
Regards,
Madhu.T.K
From India, Kannur
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If he has already been a member of EPF, he is expected to continue the EPF even if his salary is more than Rs 6500. Certainly, for new employees whose salary (Basic + DA) at the time of joining itself is more than Rs 6500, it is optional.
Regards,
Madhu.T.K
From India, Kannur
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Salary Break up - After deduction.xls
Epf circular on full salary 230317 Pension on full salary as per SC order 23.3.2017.pdf