Dear all, Under PF Act, what were the items not covered basic wages & Da in PF wages register. Thanks& Regards Balamurugan.
From India, Madras
Hi Mbala ,
your question not cleared , what i understand from question . reply is here below:
Employees drawing basic salary upto Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund .
PF amount is deducted on basis of basic salary not on DA.
Amiya Jena

From India, Jharsuguda
Dear Jena,
my question is, suppose an employee is drawn salary i.e. Basic = 5000, other allownce = Rs. 5000, so total salary is Rs. 10000.
here basic Rs. 5000/- includes basic pay & DA where pf contribution is Rs. 600/-
But here other allownaces = rs. 5000/- is exempt from pf contribution or not?
if it is exempt from pf contribution then what are the items exempt from the payment of Pf?
Thanks for your reply.
Balamurugan

From India, Madras
Dear Jena,
my question is, suppose an employee is drawn salary i.e. Basic = 5000, other allownce = Rs. 5000, so total salary is Rs. 10000.
here basic Rs. 5000/- includes basic pay & DA where pf contribution is Rs. 600/-
But here other allownaces = rs. 5000/- is exempt from pf contribution or not?
if it is exempt from pf contribution then what are the items exempt from the payment of Pf?
Thanks for your reply.
Balamurugan

From India, Madras
Mr. Bala ! You other allowances i.e. Rs 5000/- is exempted because PF is not calculated on Allowances. Amiya
From India, Jharsuguda
A company called 'X' has coverage for all their employees under ESI Act & EPF act as applicable.
A new employee is coming from company 'Y' who is joining for a Basic salary of >6500, whether he should be covered under EPF scheme. (or) can he be exempted from EPF? Is there any legal obligations on the part of employer of company 'X' to deduct EPF, even though the new employees salary is >6500?
If the new employee can be exempted from EPF, is there any legal formality to inform Epf office, what is the format? etc.
Please clarify.
Ramamoorthy.S

From India, Madras
Hi,
Rama as you have mentioned that the employee's basic salary is more than Rs.6500/- and join new company deducts P.F. for all employees in that case certainly the new company will deduct the P.F.,
there is form No.-11, that is altogether filled with form No.2 ( Nomination & Declaration form). In Form No - 11 we get the information whether the new employee was member of P.F. in last company , if he was member of P.F. in last company than it is the obligation of the new company to deduct the P.F. up to Rs. 6500/- ( Basic + DA+ Retaining Allowance, if any)
Rajiv Singh

From India
Balamurugan,
P.F is calculated only Basic + D.A.
If your salary (Basic & D.A) hike above Rs6500, You calculate of P.F @ 12% of Rs 6500/- only as per P.F act. But employer wants to pay full amount, It is also possible.
With Regards
Pradip

From India, Calcutta
hi frends... I want to understand the payroll system and what r the contents of payroll... and how it implement in a particular organisations? Pls do needful
From India, Vadodara
Hi,
I want to have clarification on this:
A person working in my factory, drawing daily salary of 500-600 (special fabrication work). Same person will not be available for all the days I require. Persons may change. Similarly I have 4 persons in my factory, who work approximately 18-20 days per month. My factory is registered under PF act where all regular workers are covered under ESI & EPF. Shall I have to cover this temporary workers also under PF act?
My doubt as above is because, their monthly salary per person is arrived @ 15000/- individually and paid on their days present basis. Since monthly salary is Rs.15000/- which is above 6500/- , is it necessary for me to include them in PF? Or is there any exemption procedure for them alone?
Please clarify.
Ramamoorthy.S

From India, Madras

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