2
Please see the definition of Exculded Employee.
Proviso to Para 26A(2) clearly provide that the amount of contribution shall be restricted to Rs 6500/- only.
(2) Every member employed as an employee other than an excluded employee, in a factory or other establishment to which this Scheme applies shall contribute to the Fund, and the contribution shall be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in paragraph 29:
Provided that subject to the provisions contained in sub-paragraph (6) of paragraph 26 and in sub-paragraph (1) of paragraph 27, or sub-paragraph (1) of paragraph 27A, where the monthly pay of such a member exceeds 20[six thousand and five hundred rupees] the contribution payable by him, and in respect of him by the employer, shall be limited to the amounts payable on a monthly pay of 20[six thousand and five hundred rupees] including 21[dearness allowance, retaining allowance (if any) and cash value of food concession.]]
Proviso to Para 26A(2) clearly provide that the amount of contribution shall be restricted to Rs 6500/- only.
(2) Every member employed as an employee other than an excluded employee, in a factory or other establishment to which this Scheme applies shall contribute to the Fund, and the contribution shall be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in paragraph 29:
Provided that subject to the provisions contained in sub-paragraph (6) of paragraph 26 and in sub-paragraph (1) of paragraph 27, or sub-paragraph (1) of paragraph 27A, where the monthly pay of such a member exceeds 20[six thousand and five hundred rupees] the contribution payable by him, and in respect of him by the employer, shall be limited to the amounts payable on a monthly pay of 20[six thousand and five hundred rupees] including 21[dearness allowance, retaining allowance (if any) and cash value of food concession.]]
Tell us self study book for sale tax and return fill of sale tax , tds and service tax, esi, pf detail with regards vimal bharti 9716376427
From India, Delhi
From India, Delhi
my company wrongly treated my gross salary as pf wages and deduct 12% from the gross ie 20000 and deduct 12% for 20000 is 2400, now can we change the pf wages to 6500 and pf 12% i.e. 780? is it possible? Please let me know.
From India, Coimbatore
From India, Coimbatore
Greeting from Sukumar Ezakiel, As I newly take HR as my career, Please tell me how to create employees profile in to Grade System, and what will be the advantages and is there any dis advantages. Kindly teach me how to do the same
Regards,
Sukumar Ezakiel.
From India, Coimbatore
Regards,
Sukumar Ezakiel.
From India, Coimbatore
Dear Gopalkrishnan, ps mention ur salary stracture then we can decide ur excatly pf to b deduct from salary
From India, Mumbai
From India, Mumbai
Hello Sir,
As per EPF Act - 2012 EPF Salary limit is Rs. 6500/-.
For e.g. Basic + DA = 12% PF
If Basic is Rs. 3562 + DA is Rs. 2912 = Salary is Rs. 6474/- so the EPF amount is Rs. 777/- (12% of 6474/-)
But if Basic is Rs. 3699 + Da is Rs. 3024 = Salary is Rs. 6723
What will be the PF amount deducted from salary Rs. 780/- (12% of 6500/-) As per Rule or Rs. 807/- (12% of 6723)
From India, BhiwandiBhiwandiBhiwandi
As per EPF Act - 2012 EPF Salary limit is Rs. 6500/-.
For e.g. Basic + DA = 12% PF
If Basic is Rs. 3562 + DA is Rs. 2912 = Salary is Rs. 6474/- so the EPF amount is Rs. 777/- (12% of 6474/-)
But if Basic is Rs. 3699 + Da is Rs. 3024 = Salary is Rs. 6723
What will be the PF amount deducted from salary Rs. 780/- (12% of 6500/-) As per Rule or Rs. 807/- (12% of 6723)
From India, BhiwandiBhiwandiBhiwandi
Dear Bhakti,
The thumb rule for PF contribution is -
a) If employee basic +DA is less than 6500 - then employee has to mandatorily contribute 12% of basic +DA towards PF. Employer must contribute 12% of Basic +DA
b) If employee basic+da is more than Rs6500/- then - employee can choose to contribute either Rs.780/- or 12% of basic +da towards PF. Employer neednot contribute more than Rs.780/- (plus 1.61% of admin, edli) (There is a process to be followed for this, which I can describe in details if you wish)
Therefore as per your eg: -
- if Basic is Rs. 3699 + Da is Rs. 3024 = Salary is Rs. 6723 - depends on the employee - if the individual wants they can opt for limiting it to Rs.780/- ; alternately if the wish they can continue with full 12% i.e. Rs.807/-
Hope this helps.
Regards,
Deena Jagasia
From India, Mumbai
The thumb rule for PF contribution is -
a) If employee basic +DA is less than 6500 - then employee has to mandatorily contribute 12% of basic +DA towards PF. Employer must contribute 12% of Basic +DA
b) If employee basic+da is more than Rs6500/- then - employee can choose to contribute either Rs.780/- or 12% of basic +da towards PF. Employer neednot contribute more than Rs.780/- (plus 1.61% of admin, edli) (There is a process to be followed for this, which I can describe in details if you wish)
Therefore as per your eg: -
- if Basic is Rs. 3699 + Da is Rs. 3024 = Salary is Rs. 6723 - depends on the employee - if the individual wants they can opt for limiting it to Rs.780/- ; alternately if the wish they can continue with full 12% i.e. Rs.807/-
Hope this helps.
Regards,
Deena Jagasia
From India, Mumbai
Can any one help us to arrive the contract labour wages pf liablity. if i engaged any contract labour and paying minimum wages. on what ground the pf and esi libility will arrive. for example i am paying daily wages of Rs.250/- for 26 days, what is the pf liability and esi libility?
From India, Chennai
From India, Chennai
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.
minimum wage Country-India grade system provident fund provident fund act pf liability min wage service tax sale tax minimum wages contract labour wage register City-India-Dhule
PF Coverage Salary Component under New PF Rule.pdf
Salary Sheet & PF PT Calculation & Challan Nov 2010.xls
