Hr-manager, Trainer, Writer
Manish Bali
Head - Ir/hr
Mapping Human Competencies
David Amaladoss
Manager - Hr
Software Engineer
+6 Others

Thread Started by #David Amaladoss

Dear All,
There is a huge confusion on PF deduction as we have mixed suggestions from PF consultants, HR Network that PF is mandatory for all irrespective of PF slab and PF is optional for employees whose basic is more than the PF slab(i.e.Rs.6500/15000 as per new revision which is yet to be effected).
Can you please clarify on this.
Thanks in advance!
19th February 2014 From India, New Delhi
What is the pension fund of 541/- Rs. in our PF.
I can see that we should eligible for that at the age of 58+. How much do we get after that age?
If a person die suddenly after 10 yrs of his/her service will the nominee get the pension fund and Provident fund. If so how long the nominee get pension. Because its almost 2 Lakhs rupees goes into pension fund during the tenure. What is the benefit for him/her or their nominees.
Can any one please explain me because I don\'t have idea on that one.
Thanks in advance.
19th February 2014 From India
Hi friends Pl read 2(f),26,26A,29,30 of PROVIDENT FUND SCHEME and para 3,4,6,9,to,16 of pension it is difficult to explain all in this forum. Varghese Mathew 09961266966
19th February 2014 From India, Thiruvananthapuram
HI David,
Well, in the best of my knowledge, the the PF deduction & contribution is mandatory till the slab of 6500 (basic salary). Beyond that it on the organisation to decide if they wish to contribute.
Hope this should help.
Vivek Sharma.
19th February 2014 From India, Madras
PF is mandatory. It is not the choice of employer or employee to decide on it. If it is not mandatory then the whole company can say 'NO' to EPF. Is this allowed under Social Security act...? Well then we can open a recurring deposit account in a nationalised bank.
Working on usual terms, if PF wages ceiling is 15000 then EPS share is 541 and remaining 1259 is EPF share. Let's wait for official circular from EPFO for the next financial year. It is too early to get confused.
19th February 2014 From India, Madras
Dear Mr. S. Candrasekhar,
As and when PF ceiling is raised to 15000 it is most likely that EPS ceiling also will be raised to 15000,meaning that EPS contribution will be 8%of 15000 + govt contribution which is also under revision to 1.76 or so from 1.16%. End result will be more pension because pension is a function of last drawn salary(average of last 12 months),but more out go from employees.
20th February 2014 From India, Thane
Shri Chandrasekar rightly said that PF contribution has to deposit by employer even after Rs. 6500/-, its not on employer wish, it is mandatory and can not be avoided. Yes, its employer wish that he would may follow maximum ceiling i.e. Rs. 6500/- for depositing PF contribution to avoid more financial burden on him.
I would like to request all the follow members that please check your best knowledge before any post for reply. It may create more confusion only.
Or Cite HR administration may also keep check all the replies before post it immediately.
Manish Bali
20th February 2014 From India, Delhi
Dear Mr R Vellanki,
1.Yes you will get a lifelong pension after 58 years.
2. In case death of a member while in service Nominee/wife for lifelong & children up to age 25 will get pension. As per the new proposal Widow & probably children also will get minimum Rs 1000. Other wise widow will get a pension which will be more than the pension entitlement of the member as if he retires on date of death(probably 1000 more,Not sure).
3. As regards your pension after 58 please find the XL sheet attached(posted on this forum by Mr Abbas iit)
20th February 2014 From India, Thane

Attached Files
Membership is required for download. Create An Account First
File Type: xls pension calculator EPF Pension abbas iit.xls (29.5 KB, 7148 views)

Unless notification comes out from EPF department for the increased Limit for EPF Rs. 15,000/-, it is very difficult to conclude on whom and how it would be applicable.
20th February 2014 From India, Vasai
PF is mandatory for all employee’s having wages not less then Rs.6500/- per month in the covered organization as per Employee Provident Fund Act, 1956. Regards,
21st February 2014 From India, Mumbai
Dear David,
The Employee is having optional to contribute the E PF whether they have getting their basic + D.A more then 6500. Those employee
needs to give a requesting letter that they want to deduct in PF and the Employer will informed to PF office also.
This below lines is taken from Times of India EPFO Latest news(2/2/2014.)
At present, EPFO does not cover organised workers under its social sector schemes whose basic wages including basic pay and dearness allowance exceed Rs 6,500 at the time of joining of service.
21st February 2014 From India, Madras
Dear All,
Any one can clarify my doubts?
Is there any official notice has published by government. if you are founding anything about it, pls share with me also with effect from when?
JBMAS, Hosur
21st February 2014 From India, Chennai
Dear David,
Greetings for the day,
No need to confuse, first of all one must know about deduction of EPF/EPS accumulation. Deduction of EPF should be done on basic+da+food conc. (if any) but mind it this should not be less than the minimum wages defined by the state govt. time to time, secondly you said about mandatory or optional , it must be noted the basic ranges upto Rs. 6500/- the deduction of epf is mandatory but once one become the member of EPF, he remain be the member until his/her basis rise upto the mark. His/Her accumulation should be fixed within the range i.e Rs. 6500/- if his or her basic rises beyond this. Thirdly as far as Rs. 15,000/- is concern lets wait for the notification rather to jump on conclusion on the basis of newspapers/channels assumption. Hope this will clerify all your doubts.
Thanks & Regards,
Sumit Kumar Saxena
1st March 2014 From India, Ghaziabad
Dear David,
Greetings for the day,
In addition to my above comment i forgot to quote that the cealing of Rs. 6500/- is mandatory for calculation of EPS contribution & EDLI , for EPF it is solely depend on employer that he consider actual basic or the limited upto the cealing. Hope this will clerify all your doubts.
Thanks & Regards,
Sumit Kumar Saxena
1st March 2014 From India, Ghaziabad
Chandru you have not full knowledge. Do n t give zig zag answer.
5th March 2014 From India, Delhi
Dear Mr.Sunil,

Please DON'T BE IMPATIENT. It is too early to discuss a topic (revised ceiling) till official circular is received. By the by, I never discuss a topic with assumptions or insufficient knowledge. Moreover my reply has been straight forward and not zig-zag.

I request the members to follow the tips.

1) Never post a question without searching this site, the reply could be available elsewhere at discussion banner.

2) Never post a question on the basis of doubts and hearsay. Wait for the official notification.

3) Never try to pull on the thread/chat without concrete solution. This can confuse members.

4) Never reply for the sake of getting 'Likes / Appreciations.'

5) Check grammar and language code while posting because the reply that you get could be unappealing.

6) This is not a place to pour out whatever you have read in theory. This is for the experts to reply, where the new and experienced learn a lot.

6) Never try to degrade the status of CiteHR.

By now you would have understood as to why many senior contributors have not participated in the thread (for the lack of complete picture).


9th March 2014 From India, Madras
dear sir,i am not able to calculate my pension as per your example . will it be possible for you to guide me so that i can calculate it accurately.
25th November 2015 From India, Delhi
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™