Hi All,
As per the PF Act, we have to deduct 12% of the PF amount from employees' salary [Basic+DA], and the employer will contribute as follows:
- 8.33% in the Pension Account
- 3.67% in the PF Account
- 0.5% in the EDLI Account
- 1.10% in the PF Admin Charges Account
- 0.01% in the EDLI Admin Charges Account
Please correct me if I am wrong. Could you clarify if EDLI should be calculated based on Gross Salary or Pension Salary? My company's approximate PF Salary is Rs.12,00,000/- and Pension Salary is Rs.9,00,000/-. When calculating EDLI, which amount should I consider, PF Salary or Pension Salary? Currently, I am calculating based on PF Salary. Urgently need assistance on this matter.
Regards,
Kanaka - Chennai
From India, Madras
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12As per the PF Act, we have to deduct 12% of the PF amount from employees' salary [Basic+DA], and the employer will contribute as follows:
- 8.33% in the Pension Account
- 3.67% in the PF Account
- 0.5% in the EDLI Account
- 1.10% in the PF Admin Charges Account
- 0.01% in the EDLI Admin Charges Account
Please correct me if I am wrong. Could you clarify if EDLI should be calculated based on Gross Salary or Pension Salary? My company's approximate PF Salary is Rs.12,00,000/- and Pension Salary is Rs.9,00,000/-. When calculating EDLI, which amount should I consider, PF Salary or Pension Salary? Currently, I am calculating based on PF Salary. Urgently need assistance on this matter.
Regards,
Kanaka - Chennai
From India, Madras
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Hi,
EDLI and Administrative Charges on EDLI are to be paid based on the salary on which EPF deductions have been made. In your case, it will be Rs. 1,200,000.00. These charges are to be borne by the employer, and no deduction is to be made on the employee.
In the EPF deposit challan, the amounts are to be mentioned in the respective columns as follows:
a) A/C No. 1 EPF (3.67% of employer share and 12% of employee contribution)
b) A/C No. 2 Administrative Charges (1.1% of salary on which EPF was deducted)
c) A/C No. 10 FPF (8.33% of employer share of contribution)
d) A/C No. 21 EDLI (0.5% of salary on which EPF deductions were made)
e) A/C No. 22 Admin. Charges on EDLI (0.01% of salary on which EPF deductions were made)
The total amount is to be deposited through a single challan in quadruplicate at the State Bank of India or State Bank of Patiala or a bank authorized by EPF authorities. The bank will keep two copies and return two copies as a receipt. One of the bank receipts mentioned above is to be attached with the EPF monthly return on Form 12A and submitted to the office of the Regional Provident Fund Commissioner in your area.
Regards,
Anil Anand
From India, New Delhi
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EDLI and Administrative Charges on EDLI are to be paid based on the salary on which EPF deductions have been made. In your case, it will be Rs. 1,200,000.00. These charges are to be borne by the employer, and no deduction is to be made on the employee.
In the EPF deposit challan, the amounts are to be mentioned in the respective columns as follows:
a) A/C No. 1 EPF (3.67% of employer share and 12% of employee contribution)
b) A/C No. 2 Administrative Charges (1.1% of salary on which EPF was deducted)
c) A/C No. 10 FPF (8.33% of employer share of contribution)
d) A/C No. 21 EDLI (0.5% of salary on which EPF deductions were made)
e) A/C No. 22 Admin. Charges on EDLI (0.01% of salary on which EPF deductions were made)
The total amount is to be deposited through a single challan in quadruplicate at the State Bank of India or State Bank of Patiala or a bank authorized by EPF authorities. The bank will keep two copies and return two copies as a receipt. One of the bank receipts mentioned above is to be attached with the EPF monthly return on Form 12A and submitted to the office of the Regional Provident Fund Commissioner in your area.
Regards,
Anil Anand
From India, New Delhi
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Dear Mr. Anil Anand,
Thank you very much for your information. I have checked with the PF Enforcement Officer regarding this issue. They have informed me that as per the act, we have to pay from Pensionable wages (i.e., 6500/-) not the full salary (Total Basic + DA). I have also checked the EDLI Act book, which mentions only Rs. 6500/- is taken into account for calculating EDLI contribution.
For example, if an employee's salary is Rs. 7500/- [Basic + DA]:
- PF 12% is Rs. 900/- (Employee Contribution)
- Pension Rs. 541/- (Employer Contribution)
- PF Rs. 359/- (Employer Contribution)
- EDLI is to be calculated from Rs. 6500/- not Rs. 7500/- (6500 * 0.5%)
This is for your information. For further details, please feel free to reach out.
Regards,
Kanaka
From India, Madras
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Thank you very much for your information. I have checked with the PF Enforcement Officer regarding this issue. They have informed me that as per the act, we have to pay from Pensionable wages (i.e., 6500/-) not the full salary (Total Basic + DA). I have also checked the EDLI Act book, which mentions only Rs. 6500/- is taken into account for calculating EDLI contribution.
For example, if an employee's salary is Rs. 7500/- [Basic + DA]:
- PF 12% is Rs. 900/- (Employee Contribution)
- Pension Rs. 541/- (Employer Contribution)
- PF Rs. 359/- (Employer Contribution)
- EDLI is to be calculated from Rs. 6500/- not Rs. 7500/- (6500 * 0.5%)
This is for your information. For further details, please feel free to reach out.
Regards,
Kanaka
From India, Madras
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Hi Kanak,
I am in complete agreement with you. The base amount of EPS cannot exceed INR 6500.00 in any case, on which the EDLI contribution is calculated at 0.50% and the EDLI Admin charges at 0.01%.
Regards,
Puran Dangwal
From India, New Delhi
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I am in complete agreement with you. The base amount of EPS cannot exceed INR 6500.00 in any case, on which the EDLI contribution is calculated at 0.50% and the EDLI Admin charges at 0.01%.
Regards,
Puran Dangwal
From India, New Delhi
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Hi All,
Can anybody let me know what the maximum age limit for EDLI contribution is?
Suppose if a worker has completed the age of 61 years, then, in this case, we need to deposit EDLI contribution.
Regards,
Vinod
From India, Delhi
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Can anybody let me know what the maximum age limit for EDLI contribution is?
Suppose if a worker has completed the age of 61 years, then, in this case, we need to deposit EDLI contribution.
Regards,
Vinod
From India, Delhi
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EDLI contribution is to be restricted to a salary of Rs 6500. There is no age limit for such contribution since it is a kind of insurance. Regards, Madhu.T.K
From India, Kannur
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From India, Kannur
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Hi everyone!
I have an issue. The company is offering CTC to every employee. We provide them with a CTC breakup at the time of joining with the appointment. In our salary sheet, we only show monthly earnings and deductions, with the same components displayed in the salary slip. However, the amounts differ from those mentioned in the appointment letter. I need your guidance on this. Should we show the same breakup in both documents?
Secondly, we show PF on the deduction side as (PF Employers Side). Can we show it in the salary sheet?
Regards,
Chauhan
From India, Vadodara
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I have an issue. The company is offering CTC to every employee. We provide them with a CTC breakup at the time of joining with the appointment. In our salary sheet, we only show monthly earnings and deductions, with the same components displayed in the salary slip. However, the amounts differ from those mentioned in the appointment letter. I need your guidance on this. Should we show the same breakup in both documents?
Secondly, we show PF on the deduction side as (PF Employers Side). Can we show it in the salary sheet?
Regards,
Chauhan
From India, Vadodara
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In your case you have to deduct the edli amount on your PF gross and not on FPF account..
From India, Coimbatore
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From India, Coimbatore
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hi, I have a problem. a person’s basic salary is 20000/- pm. On Which basic amount EDIL charges 1.1% and .1% should calculated. Kindly help me.
From New Zealand, Auckland
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From New Zealand, Auckland
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Hi, All,
As per the PF Act, we have to deduct 12% of the PF amount from employees' salary [Basic+DA], and the employer will contribute as follows:
- 8.33% in the Pension Account
- 3.67% in the PF Account
- 0.5% in the EDLI Account
- 1.10% in the PF Admin Charges Account
- 0.01% in the EDLI Admin Charges Account
Please correct me if I am wrong. I need clarification on whether EDLI should be calculated based on Gross Salary or Pension Salary. Currently, I am calculating it based on PF Salary. My company's approximate PF Salary is Rs. 12,00,000/-, and Pension Salary is Rs. 9,00,000/-. Kindly advise on which amount I should consider when calculating EDLI. This is urgent.
Regards,
Kanaka - Chennai
Dear Kanaka,
Can you help me out? We are not paying EDLI, it is not reflected in the PF challan, nor are we paying it to LIC. However, we are paying EDLI Admin charges in the PF challan. Could you please clarify whether we are required to pay the admin charges or not?
Regards,
Lakshmi
From India, Hyderabad
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As per the PF Act, we have to deduct 12% of the PF amount from employees' salary [Basic+DA], and the employer will contribute as follows:
- 8.33% in the Pension Account
- 3.67% in the PF Account
- 0.5% in the EDLI Account
- 1.10% in the PF Admin Charges Account
- 0.01% in the EDLI Admin Charges Account
Please correct me if I am wrong. I need clarification on whether EDLI should be calculated based on Gross Salary or Pension Salary. Currently, I am calculating it based on PF Salary. My company's approximate PF Salary is Rs. 12,00,000/-, and Pension Salary is Rs. 9,00,000/-. Kindly advise on which amount I should consider when calculating EDLI. This is urgent.
Regards,
Kanaka - Chennai
Dear Kanaka,
Can you help me out? We are not paying EDLI, it is not reflected in the PF challan, nor are we paying it to LIC. However, we are paying EDLI Admin charges in the PF challan. Could you please clarify whether we are required to pay the admin charges or not?
Regards,
Lakshmi
From India, Hyderabad
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PF CHALLAN & CALCULATION SHEET.xls