May I know what is the PF contribution on employers side???????????
From India, Kota
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From India, Kota
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It's the same as employee 12%, but an administrative charge is applied to the total amount, which is 1.61%. The total is calculated as 12% (employee share) + 12% (employer share) + 1.61% (administrative charge) = 25.61%.
Hope this helps you.
From India, Durgapur
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Hope this helps you.
From India, Durgapur
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Dear Gautam and Sonu,
I have received an offer letter from an employer where they have mentioned my basic salary as Rs. 8,333 per month and my PF contribution (from the employer's side) as Rs. 780 per month.
I am confused about how this is possible. Could you please explain?
Thank you.
From India, Kota
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I have received an offer letter from an employer where they have mentioned my basic salary as Rs. 8,333 per month and my PF contribution (from the employer's side) as Rs. 780 per month.
I am confused about how this is possible. Could you please explain?
Thank you.
From India, Kota
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this is becoz the maximum amount for the pf is subject to the maximum of Rs 6500.(basic+da) so the employer may contribute only 12 % of this amount
From India, Thiruvananthapuram
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1From India, Thiruvananthapuram
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Does it means that employer can contribute a max. amount of Rs.780/- only irrespective of the basic pay of the employee????????????
From India, Kota
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From India, Kota
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other wise they need to giv letter to the pf authority regarding the enhqancmnt of the pf limit from 6500
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Hi, The upper limit is fixed to Rs 6500*12% however the contribution can be more that 6500 which depende upon emplolyees and employers negotiation at the time of hiring/apprasial. Regards, Harpreet
From India, New Delhi
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From India, New Delhi
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hi so this PF concepts,, who are get salary more than 6500 they are not eligible to get PF that’s right?
From India, Bangalore
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From India, Bangalore
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Hi,
All the employees are eligible for PF facility. Those who are drawing a basic salary of less than or equal to Rs 6500 are mandatory to be covered under PF. All the employees getting more than Rs 6500 basic salary are not mandatory to be covered; however, they can still opt for this facility with the mutual consent of the employer, as the 13.61% also needs to be paid by the employer, which includes administration charges as well. This can be arranged at the time of joining or during the appraisal.
Regards,
Harpreet
From India, New Delhi
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All the employees are eligible for PF facility. Those who are drawing a basic salary of less than or equal to Rs 6500 are mandatory to be covered under PF. All the employees getting more than Rs 6500 basic salary are not mandatory to be covered; however, they can still opt for this facility with the mutual consent of the employer, as the 13.61% also needs to be paid by the employer, which includes administration charges as well. This can be arranged at the time of joining or during the appraisal.
Regards,
Harpreet
From India, New Delhi
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Thank you for the information. I have one more question. Is 13.61% the administration charge for individuals with a basic salary exceeding 6500? Could you please explain this further? Also, what are the main forms in PF?
Regards,
RAHUMAN
From India, Bangalore
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Regards,
RAHUMAN
From India, Bangalore
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13.61% is not the administrative charges.
Administrative charge is 1.10%
There is something called EDLI (Employee deposit linked insurance)
EDLI This is an insurance scheme to provide life insurance benefits to the employees of the establishments covered by the EPF & MP Act, 1952
1. On the death of an employment while in service a lump sum insurance amount is payable to his nominee or family members.
2. The insurance amount is equal to the average balance in the account of the deceased employee in the Provident Fund during a period of 12 months immediately preceding his death. In case the average balance exceeds Rs.50,000/- the insurance amount payable is Rs. 50,000/- plus 40% of the amount in excess of Rs. 50,000/- subject to a ceiling of Rs. 1,00,000/-. As per the 18th june, 2010 amendment
So for this EDLI Employer will contribute 0.5% on Basic + D.A and its administrative charge is 0.01 % on Basic + D.A
So
EPF (employer contribution) - 12%
Administrative charge for EPF - 1.10%
EDLI - 0.5%
Administrative charge on EDLI - 0.01%
TOTAL - 13.61%
And if you add employee’s contribution of 12 % it will be 25.61%
Contribution for Administrative charge will be from employer side
dont confuse with 6500 that is the ceiling, if you are getting more than 6500 as your basic and DA you can contribute 780 i.e 12 % of 6500 which is the minimum amount or you can contribute 12% on what you get (Basic + D.A)
For forms I have attached the file which i have taken from citehr check it.
From India, Madras
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Administrative charge is 1.10%
There is something called EDLI (Employee deposit linked insurance)
EDLI This is an insurance scheme to provide life insurance benefits to the employees of the establishments covered by the EPF & MP Act, 1952
1. On the death of an employment while in service a lump sum insurance amount is payable to his nominee or family members.
2. The insurance amount is equal to the average balance in the account of the deceased employee in the Provident Fund during a period of 12 months immediately preceding his death. In case the average balance exceeds Rs.50,000/- the insurance amount payable is Rs. 50,000/- plus 40% of the amount in excess of Rs. 50,000/- subject to a ceiling of Rs. 1,00,000/-. As per the 18th june, 2010 amendment
So for this EDLI Employer will contribute 0.5% on Basic + D.A and its administrative charge is 0.01 % on Basic + D.A
So
EPF (employer contribution) - 12%
Administrative charge for EPF - 1.10%
EDLI - 0.5%
Administrative charge on EDLI - 0.01%
TOTAL - 13.61%
And if you add employee’s contribution of 12 % it will be 25.61%
Contribution for Administrative charge will be from employer side
dont confuse with 6500 that is the ceiling, if you are getting more than 6500 as your basic and DA you can contribute 780 i.e 12 % of 6500 which is the minimum amount or you can contribute 12% on what you get (Basic + D.A)
For forms I have attached the file which i have taken from citehr check it.
From India, Madras
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Thank you very much for the detailed information you provided. Now, could you please explain the employer and employee contributions? I understand the difference in terms, but I would like to know more about the legal and PF-based contributions. Thank you.
From India, Bangalore
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From India, Bangalore
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Dear,
For better clarity, please find appended details for your records regarding PF calculation:
- PF employee contribution: 12%
- EPF employer contribution: 8.33% (restricted to Rs. 541/-; remaining amount will be posted to PF employee contribution)
- EPF employer contribution: 3.67% (overall employer contribution comes to 12%)
- ADMN charges: 1.10%
- ADMN EDLI: 0.01%
- EDLI: 0.5%
Hope this clarifies.
Regards,
ASK
From India, Madras
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For better clarity, please find appended details for your records regarding PF calculation:
- PF employee contribution: 12%
- EPF employer contribution: 8.33% (restricted to Rs. 541/-; remaining amount will be posted to PF employee contribution)
- EPF employer contribution: 3.67% (overall employer contribution comes to 12%)
- ADMN charges: 1.10%
- ADMN EDLI: 0.01%
- EDLI: 0.5%
Hope this clarifies.
Regards,
ASK
From India, Madras
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The employer's contribution is 12%. As others have mentioned, there is a breakdown in the employer's contribution. The reason the amount is coming out less is because they would have calculated it based on the minimum limit of the basic salary, i.e., 6500/-.
From India, Coimbatore
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From India, Coimbatore
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I think ,we can make sence that PF is the mitual understanding financial plan of which are strickly followed by the employer .
From Bangladesh
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From Bangladesh
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dear sir, can i get pf withdrawal form? i was worked in delhi based company called lilliput kidswear ltd for 27 months from 25.05.2007 to 31.08.2009 Regards Bhuthesh
From India, Bangalore
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From India, Bangalore
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Dear Bhutesh,
Follow the link below for your needs. Additionally, there are some other important forms available for download:
[Download All Provident Fund (PF/EPFO) Forms here | Provident Fund Forms](http://www.downloadformsindia.com/Provident-Fund-Forms/download-all-provident-fund-pf-epfo-forms-here.html)
Regards,
Krishna Kumar Pandey
9840221925
From India, Mumbai
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Follow the link below for your needs. Additionally, there are some other important forms available for download:
[Download All Provident Fund (PF/EPFO) Forms here | Provident Fund Forms](http://www.downloadformsindia.com/Provident-Fund-Forms/download-all-provident-fund-pf-epfo-forms-here.html)
Regards,
Krishna Kumar Pandey
9840221925
From India, Mumbai
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I think "kichasince1986" has clearly mentioned the actual employer’s contribution to the PF A/C of an employee. Thanks for the clarification "kichasince1986".
From India, Kota
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From India, Kota
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Dear all,
The upper limit for the basic salary at 6500 allows the option to deduct PF at 6500*12%. The 6500 is the eligibility threshold for the PF fund. If an employee's basic salary is less than 6500, they need to contribute to the PF, as it is mandatory. However, for salaries above this threshold, the contribution is optional.
Thank you,
Parveen
From India, Bahadurgarh
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The upper limit for the basic salary at 6500 allows the option to deduct PF at 6500*12%. The 6500 is the eligibility threshold for the PF fund. If an employee's basic salary is less than 6500, they need to contribute to the PF, as it is mandatory. However, for salaries above this threshold, the contribution is optional.
Thank you,
Parveen
From India, Bahadurgarh
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What if the PF is included in CTC on both sides (Employee and Employers) from our Salary? My salary structure is as follows. Please guide. Is it OK? Or not.
BASIC 5670.00
DA 2835.00
HRA 4253.00
CONVEYANCE ALLOWANCE 1600.00
MEDICAL ALLOWANCE 1250.00
SPECIAL ALLOWANCE 3643.00
CTC BONUS 1749.00
GROSS SALARY (A) Total CTC 21000.00
EMPLOYEE DEDUCTION
EMPLOYEE PF 1021.00
EMPLOYER PF (Deduct from Employee) 1021.00
EMPLOYEE PROFESSIONAL TAX 200.00
TOTAL EMPLOYEE DEDUCTION (B) 2242.00
NET TAKE HOME (A - B) 18758.00
From India, Ahmedabad
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BASIC 5670.00
DA 2835.00
HRA 4253.00
CONVEYANCE ALLOWANCE 1600.00
MEDICAL ALLOWANCE 1250.00
SPECIAL ALLOWANCE 3643.00
CTC BONUS 1749.00
GROSS SALARY (A) Total CTC 21000.00
EMPLOYEE DEDUCTION
EMPLOYEE PF 1021.00
EMPLOYER PF (Deduct from Employee) 1021.00
EMPLOYEE PROFESSIONAL TAX 200.00
TOTAL EMPLOYEE DEDUCTION (B) 2242.00
NET TAKE HOME (A - B) 18758.00
From India, Ahmedabad
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf