Ashoknegidi
Training Operations - Csr
9871103011
Private Consultant On Labour Laws
Loginmiracle
Consultant & G.m.
Rajeevdixit
Hr , Personnel & Admin
Rdkanna
Working As A Manager - Hr
+5 Others

Dear Seniors,
Kindly suggest me in below mentioned issue.
I'm deducting PF on basic 6500 as per govt ceiling.
If basic is higher than 6500 can i mention the same basic & deduct PF for 6500 only i,e 780 irrespective of actual basic amount.
For example basic is 10000 but deducted PF for 6500 i,e 780. in this case can i mention in pay slip as basic amt as 10000 & PF as 780??
If not how should i split salary??
please advise..
Hi , in pay slip you need to mention the actual basic what ever is the amount. and 780 you can show as deduction towards PF . Where is the issue . Regards Rajeev Dixit
Hi, you can show the PF deduction 780/- irrespective your actual basic, you can show the actual basic, pf deduction 780/-
Thanks Rajeev & Ashok..
But i have another query i,e should i mention any note in pay slip or CTC break up sheet that i'm deduction PF on govt ceiling of 6500.
Actually employees have been asking that what should they tell about PF deduction percentage if they go to other companies.
No need to mention like that, you can say the same things when you have small meetings, while observing the employees.
No its not required to mention that way . You can convey this orally when asked . Regards Rajeev Dixit
Dear Ashok, Is there any problem if i mention note below CTC as well as Pay slip that PF is calculated on Basic of 6500. Regards Ramya
Dear Ashok & Rajeev,
Thanks for reply.
But employee is not satisfied with oral communication they want in written format. Actually they are assuming that if they show this pay slip no other company will be believing them. is there any legal issue by mentioning & not mentioning ??
u can mention in appointment letter, is there any problem to disclose the same thing orally not through Pay slip.
------------
Nothing to worry, you may either mention in the Pay slip or CTC sheet or anywhere else saying "PF -employee's subscription and employer's contribution is restricted to for a maximum of Rs.6500/- as per EPF Act." Or put it on the Notice Board or circulate or include a clause in the Apptt.letter. Any one of these will do.
kumar.s.
Hi, Ask them to check appointment letter at last page of Salary Break up, if is not there give mail on the same to employees so that then can understand the statutory requirements.
Hi,
PF deduction is restricted only to employers contribution of Rs.650//- (ie Rs.780/-), why do you want to restrict on employees deduction, you can deduction PF on total value of Basic & DA.
Regards,
Mubarack
Senior Manager -HR
I agree to what Kumar says. As per the EPF Act the maximum salary ceiling for deduction of PF is 6500. Again there is a clause, if the member wants to contribute on his entire basic he can do so and the employer may restrict his contribution to the ceiling of 6500.
Of course, employee at his/her own discretion can contribute to his/her PF even if salary crossed over and above Rs.6500/= but employer cannot be compelled to follow suit as they normally restrict their contribution only upto Rs.6500/=. There are employers who contribute without this restriction as a gesture. But most of the 'Exempted Employer" who have set up PF Trust apply this restriction upto Rs.6500/= because of imbalance in the interest earned and disbursement commitment to PF members.
kumar.s.
DEAR ramyachary YOU CAN ADD ONE COLUM IN PAYSLIP MENTIONING PF BASIC AS RS.6500/-JUST BELOW ACTUAL BASIC WHICH WILL SOLVE YOUR PROBLEM REGARDS NILESH SONI 9869477332
Dear Sir,
If the basic is higher than 6500, You can mention the actual basic (ie 10000) & for PF contribution you can show Rs.780/- In the pay slip also you can mention Rs.10000/- as basic. If the employee wants any clarification, you can explain that employer need not contribute more than 6500. (upper celing limit)
Now a days I heard that for PF contribution, except HRA, they will include all the allowances
Dear Sir,
If the basic is higher than 6500, You can mention the actual basic (ie 10000) & for PF contribution you can show Rs.780/- In the pay slip also you can mention Rs.10000/- as basic. If the employee wants any clarification, you can explain that employer need not contribute more than 6500. (upper celing limit)
Now a days I heard that for PF contribution, except HRA, they will include all the allowances
R.Dhamodhara kannan
Dear Ramyachary,
After PF deduction of Rs.780/- whatever additional contribution calculate for member who has basic salary more than 6500/- the remaining amount will goes into Pension account.
Santosh M.
DEAR SANTOSH M,
YOUR STATEMENT IS TOTALLY WRONG, PLEASE NOTE THAT PENSION CONTRIBUTION IS A CO"S PART AND THERE IS NO DEDUCTIONS FROM SALARY OF PENSION CONTRIBUTION AND IT IS FIXED 8.33% OF BASIC+da MAX IS rs541/-
SO PLEASE UPDATE YOUR KNOWLEDGE AND DO NOT POST WRONG INFORMATION.
NILESH SONI
9869477332
Dear Member,
It is not that big problem on which you have sought clarification. you can simply show your gross pay in one column and in another column you can mentioned as 'PF wages' ,which can be restricted to prescribed limit of Rs.6500/- on which you can deduct the PF contribution.
BS Kalsi
Contributing Member
Dear Nilesh,
Thanks for your valuable information, actually by mistake I have stated about "pension" instead of Employer's PF contribution.
I am aware that the percentage of pension is fixed as 8.33%, more than that the amount i.e. Rs.541/- gets added in the employer's PF contribution.
For e.g.Basic is 8000/- Employee's PF contribution will be 960/- and employer's PF 419+pension 541/- (419+541=960).
I hope this information is fine and there should be no confusion.
Regards,
Santosh M.
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