Hi to everybody.
I have gone through the section of PF deductible if salary is >10,000. My question is that if the b+da is more than 6500, then the employee will have or will not have his pf deductions from the salary.
Also if the deductions are there then would it be only calculated on 6500/-. Also in employer's share 8.33% goes to pension subject to maximum of Rs.541 and rest 3.67% goes to pf. But if say there are 10 employees whose salary is more than 10000 and if pf gets deducted then everybody's deduction will be the same.
reshma shah
From India, Mumbai
I have gone through the section of PF deductible if salary is >10,000. My question is that if the b+da is more than 6500, then the employee will have or will not have his pf deductions from the salary.
Also if the deductions are there then would it be only calculated on 6500/-. Also in employer's share 8.33% goes to pension subject to maximum of Rs.541 and rest 3.67% goes to pf. But if say there are 10 employees whose salary is more than 10000 and if pf gets deducted then everybody's deduction will be the same.
reshma shah
From India, Mumbai
Hello there
It is not necessary to deduct PF in such cases where a person is joining a covered establishment with a starting wages exceeding Rs.6500/-. However, if a person who was already with his employer and was contributing to PF, in that case, even after his wages exceed Rs.6500/- he will continue to be a member.
Once the wages exceed Rs.6500/= an employee can contribute his share on the basis of his actual basic pay, but the Management may restrict its contribution at Rs.6500/ only.
Out of the Management Contribution, only 8.33 % on Rs.6500 which comes to Rs.541.45) is remitted to the Employee Pension Fund and the balance 3.67 remains with the PF fund of the employee.
Iam I made any sense. Bye
Karath AK
From India, Gurgaon
2It is not necessary to deduct PF in such cases where a person is joining a covered establishment with a starting wages exceeding Rs.6500/-. However, if a person who was already with his employer and was contributing to PF, in that case, even after his wages exceed Rs.6500/- he will continue to be a member.
Once the wages exceed Rs.6500/= an employee can contribute his share on the basis of his actual basic pay, but the Management may restrict its contribution at Rs.6500/ only.
Out of the Management Contribution, only 8.33 % on Rs.6500 which comes to Rs.541.45) is remitted to the Employee Pension Fund and the balance 3.67 remains with the PF fund of the employee.
Iam I made any sense. Bye
Karath AK
From India, Gurgaon
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#Subject List: pf fund pension fund pf deductions employee pension City-India-Mumbai Country-India
Salary Sheet & PF PT Calculation & Challan Nov 2010.xls
