Dear Friends,
India Inc can now limit its Provident Fund contributions against the statutory salary ceiling limit of Rs 6,500 per month, even if earlier such PF contribution was being computed against full basic wages or salary. The Employee Provident Fund Office (EPFO) has on May 27, 2014, issued a circular to this effect.
Under Provident Fund (PF) regulations, PF is computed at 12% (for both the employer and employee contributions) against 'basic wages'. The minimum statutory limit against which such PF is to be computed is Rs 6,500 per month. The employer and employees have an option to make PF contributions on salary payments in excess of Rs 6,500 per month.
In those cases where contributions were made in excess of the statutory limit, the issue was whether an option is available to revert to lower levels of contributions (i.e.: a contribution computed against the statutory limit of Rs 6,500). The EPFO has now clarified on this issue.
Thanks,
GAUTAM KAR
From India, Kolkata
68India Inc can now limit its Provident Fund contributions against the statutory salary ceiling limit of Rs 6,500 per month, even if earlier such PF contribution was being computed against full basic wages or salary. The Employee Provident Fund Office (EPFO) has on May 27, 2014, issued a circular to this effect.
Under Provident Fund (PF) regulations, PF is computed at 12% (for both the employer and employee contributions) against 'basic wages'. The minimum statutory limit against which such PF is to be computed is Rs 6,500 per month. The employer and employees have an option to make PF contributions on salary payments in excess of Rs 6,500 per month.
In those cases where contributions were made in excess of the statutory limit, the issue was whether an option is available to revert to lower levels of contributions (i.e.: a contribution computed against the statutory limit of Rs 6,500). The EPFO has now clarified on this issue.
Thanks,
GAUTAM KAR
From India, Kolkata
Hello,
Thanks for the update.
i have a question with regard to PF contributions for contract labor persons. Q- the persons is employed only for 10 -15 days for a work and then relieved, so the wages payable are for no of days of attendance. If his salary is above 6500 but as per his attendance his payable salary comes lesser than 6500, as per the present law will the employer have to deduct the PF on the actual payable salary or for the full month on his agreed salary ?
kindly advise
regards,
Abhay
From India, Vadodara
Thanks for the update.
i have a question with regard to PF contributions for contract labor persons. Q- the persons is employed only for 10 -15 days for a work and then relieved, so the wages payable are for no of days of attendance. If his salary is above 6500 but as per his attendance his payable salary comes lesser than 6500, as per the present law will the employer have to deduct the PF on the actual payable salary or for the full month on his agreed salary ?
kindly advise
regards,
Abhay
From India, Vadodara
Hi,
I have a question.. i have withdrawn my pf amount recently, However when i checked my EPF balance in my pf account, it is still showing some amount. But this amount was not credited in my bank account..
please help me what is the EPF balance as i have already withdrawn my pf.
Thanx
From India, Noida
I have a question.. i have withdrawn my pf amount recently, However when i checked my EPF balance in my pf account, it is still showing some amount. But this amount was not credited in my bank account..
please help me what is the EPF balance as i have already withdrawn my pf.
Thanx
From India, Noida
Hi All, Have to ask all seniors on this order. Suppose the employer is already contributing above the Statutory wage ceiling, then can the employer reduce it to only the wage ceiling. Regards,
From India, Bangalore
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
EPF - Pension contribution is zero WHY.jpg
EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf
Splitting of MW for EPF contribution.do cx