Kishorkulkarni
Law Practice
Teamgrouphr
Placement Consultancy
SPKR
Consultant In Education, Real Estate, Home
Disha G.
Human Resource
Sandeep Todi
Strategy Leader
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Kknair
Hr, Ir, Law, Disc. Matters
Lakshmi87*
Agm - Hro, Compensation & Benefit Mgt,
Eswararao Ivaturi
Ex-manager (pers&adma)
Rajans68
Consultant
+2 Others

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Dear All,

I have one query, please let me give the solution.

We are very small organization and we are deducting the PF amount within the limit of 6500/- Rs.

Our Case is;;

In the last month, one of the employee met with an accident and she attended her duty from 1st sept. to 20th sept. 2013 then after 21st she met within an accident and remaining days she not attended her duty. And her salary of these 20 days is Rs. 8000 (Basic only). So, can we deduct the PF amount like 6500/- * 12% of what?

Her salary is deducted from the month of Sept. 2013. (10 Days)

i.e. calculation is like

1. If her 20 days salary is crossed the limit of 6500 then we can deduct the PF is 6500*12%

2. and if her 20 days salary is crossed the limit of 6500 and she not attended her duty remaining 10 days and if her salary is crossed 6500 then we consider accordingly her present days only and we can deduct pf respect to (6500/30)*20 days * 12% .... Is it ok

Please give me solution about this query… please.

Regards,

Disha G.

Human Resource Department

Hi you can deduct pf on actual drawn basic for 20days and pay.there is no need to pay on Rs.6500/-. the calculation formula shown by you is correct.
Dear Disha,
Even if the salary is in excess of Rs. 6500, ceiling salary will be treated as 6500 for whole month. Accordingly for 20 days attendance out of 30, the contribution will be 6500x20/30x12% = 520.
Abbas.P.S

Disha,
Greetings!!!
You must understand that PF is a fixed contribution and you can not decrease it. It has either to be paid on the basic salary or on 6500 ( keeping in mind , Cap aspect).
If i am not wrong, you are misunderstanding the concept of basic salary and gross salary. Plz clarify

SPKR:
Disha
As per the details posted your employee is drawing more than Rs.6500/- She is not covered under EPF scheme1952 under section 2(f).
According to Section 2(f) EPF Scheme 1952 : excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund under clause (a) or (c) of sub-paragraph (1) of paragraph 69;
(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds [six thousand and five hundred rupees] per month;
Very recently the limit of Rs.6500/- is enhanced in an amendment to the said Act.
SPKR

Disha
If you are contributing PF for the employees with basic above Rs 6500/- subject to statutory ceiling,then in this particular case the basic for 20 days will be deemed as 6500x20/30.
Varghese Mathew
09961266966

HI PF DEDUCTION IS ON AMOUNT 6500 MAXIMUM AND U HAVE TO DEDUCT PF ON 6500 i.e 780 (12%). IF AN EMPLOYEE GET 8000 BASIC SALARY U HAVE TO DEDUCT PF ON AMOUNT 6500 IF HE COME TO HIS DUTY ONLY 20 DAYS HE GETS 5333 RS AND PF WILL DEDUCT ON FULL AMOUNT BECAUSE 20 DAYS SALARY DOES NOT CROSS THE LIMIT 6500 AND IF IT IS CROSS THE LIMIT THEN PF AMOUNT REMAINS 6500.
Madam/Sir,
PF is always deducted on the salary earned during the month. If the salary exceeds Rs.6500/- Statutorily you can restrict deduction upto Rs.6500/-. If you are already contributing/deduction PF on full salary (i.e in excess of Rs.6500) then the PF should be deducted on the actual sum paid.
Regards
Pradheep

Well, I have seen all the discussions. But one thing is sure that, none is talking of the limit of 6,500. Please note that the limit of Rs. 6,500 is related just not to a mare figure but to month. In other words, salary of Rs. 6,500 per month is the limit.
In this case though salary is Rs. 8,000 p. m. and for full working days the limit of Rs. 6,500 pm can easily be applicable. But it is confusing when salary earned is less than the prescribed limit of Rs. 6,500 p. For 20 days of work, the under ceiling salary will be Rs. 4,333 and over ceiling salary will be 1000, thus making a total of Rs. 5,333. (Amt. in paisa ignored). In my opinion, the PF should be only on Rs. 4,333 i. e the under ceiling salary and not on entire salary of Rs. 5,333. This logic is necessary to be sorted out because for computer programs, such points put a good hurdle.
Adv. K. H. Kulkarni

The contribution of Rs 520. is correct as posted by Mr ABBAS and Mr KULKARNI. Varghese Mathew 09961266966.

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