Dear All,
I have recently joined a start-up travel company in Gurgaon. At all my previous employment, 12% PF contribution was deducted for both employee as well as employer from the salary per month. Here, irrespective of your Basic salary, which is mostly on the higher side, a minimum of Rs. 780/- is being deducted per month as employees' contribution.
Is it as per the compliance/PF Act or ethically wrong? Please Guide.
Regards,
Meenakshi
From India, Delhi
I have recently joined a start-up travel company in Gurgaon. At all my previous employment, 12% PF contribution was deducted for both employee as well as employer from the salary per month. Here, irrespective of your Basic salary, which is mostly on the higher side, a minimum of Rs. 780/- is being deducted per month as employees' contribution.
Is it as per the compliance/PF Act or ethically wrong? Please Guide.
Regards,
Meenakshi
From India, Delhi
As per the provisions of the PF Act, if the basic salary is Rs. 6500/- then PF is deducted @ 12% which comes to Rs. 780/- In a case where the basic salary is more than Rs. 6500/-, the salary which is considered for the purpose of calculation of the PF contribution is 6500/- and therefore the contribution amount comes to Rs. 780/-.
Please check your basic salary in the pay slip.
From India, Pune
3Please check your basic salary in the pay slip.
From India, Pune
Thanks for the instant reply.
My Basic salary is close to 26K and all employees are way to above of Rs. 6500/- basic salary slab.
Still our payroll partner who's an outsourced company deducts a standard Rs. 780/- per month irrespective of your actual basic salary.
From India, Delhi
My Basic salary is close to 26K and all employees are way to above of Rs. 6500/- basic salary slab.
Still our payroll partner who's an outsourced company deducts a standard Rs. 780/- per month irrespective of your actual basic salary.
From India, Delhi
Hi Meenakshi,
There are many company's who follow the same rule as in your case for PF contribution, and it is statutorily correct, since when basic salary is more than 6500 pm then it is company's discretion that on which grounds PF contribution has to be done.
From India, Kollam
There are many company's who follow the same rule as in your case for PF contribution, and it is statutorily correct, since when basic salary is more than 6500 pm then it is company's discretion that on which grounds PF contribution has to be done.
From India, Kollam
You may prepare 2 paras, one for general employment obligations and another one for confidentiality . For general employment obligations you can add sub clauses like wherein work product generated by an employee(reports, logs, electronic data, training material etc) shall be the sole of exclusive property of company ( dont forget to mention generality of the foregoing, the company shall own intellectual rights of all discovery, innovation, improvement, design etc,), in confidentiality para you may add an employee can not reveal any of the trade secret, dealings, confidential information to any organisation or an individual (dont forget to mention this para applies during and after the employment as well)
From India, Kollam
From India, Kollam
Sir,
Sub: EPF and MP Act 1952-Contributions to be within the Statutory Limit on Wages – EPFO HQ reiterates.
Ref: The Letter No. LC (637) 2009/Vol.I/203 dated 27.05.2014 of the EPFO HQ.
*****
A copy of the letter of the EPFO HQ is reproduced below for the information of all members. Accordingly, any pressure to pay contributions over and above the Statutory Wage Limit of Rs.6500 shall be deferred by mills when insisted by EPFO officials during the course of their inspections by showing the EPFO HQ Circular. Accordingly, the EPFO Circular settles the issue that no employer should be forced to recover and remit subscription for any wage over and above Rs.6500 per month.
EMPLOYEES’ PROVIDENT FUND ORGANISATION
Bhavishya Nidhi Bhawan, 14, Bhikaji Cama Place, New Delhi- 110066
No. LC (637) 2009/Vol.I/203
Date : 27.05.2014
To,
All Addl. Central Provident Fund Commissioners (Zones)
Subject: Filing of Review Petition against judgment of Hon\'ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Employees Union vs. Management of Marathwada Gramin Bank - regarding.
Reference: This office letter No. LC-2(637)2009/MH/1278O dated 08.10.2013
Sir,
Please refer to the above cited letter wherein views on the issue of filing Review Petition/implementation of the order dated 9.9.2011 of the Hon\'ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Karamcharl Sangathan & Ors. vs. Management of Marathwada Gramin Bank, were called for.
2. The views expressed by the Zonal Addl. Central Provident Fund Commissioners as to whether review petition need to be filed or not has been examined at Head Office. Having analyzing the pros and cons of the issue, Competent Authority felt that there is no point in going for review against the said judgment of Hon\'ble Supreme Court of India.
3. All the Regional Provident Fund Commissioners-In-charge of Regional/Sub-Regional Offices are, therefore, directed not to force employers to contribute over and above the statutory wage ceiling in respect of their employees. However, option is available for the employees to contribute beyond the statutory wage ceiling if they so desire subject to the conditions enumerated under Para 26(6) of the Employees\' Provident Funds Scheme, 1952.
Yours faithfully,
(P.K. UDGATA)
Addl. Central Provident Fund Commissioner (Compliance)
From India, Mangalore
Sub: EPF and MP Act 1952-Contributions to be within the Statutory Limit on Wages – EPFO HQ reiterates.
Ref: The Letter No. LC (637) 2009/Vol.I/203 dated 27.05.2014 of the EPFO HQ.
*****
A copy of the letter of the EPFO HQ is reproduced below for the information of all members. Accordingly, any pressure to pay contributions over and above the Statutory Wage Limit of Rs.6500 shall be deferred by mills when insisted by EPFO officials during the course of their inspections by showing the EPFO HQ Circular. Accordingly, the EPFO Circular settles the issue that no employer should be forced to recover and remit subscription for any wage over and above Rs.6500 per month.
EMPLOYEES’ PROVIDENT FUND ORGANISATION
Bhavishya Nidhi Bhawan, 14, Bhikaji Cama Place, New Delhi- 110066
No. LC (637) 2009/Vol.I/203
Date : 27.05.2014
To,
All Addl. Central Provident Fund Commissioners (Zones)
Subject: Filing of Review Petition against judgment of Hon\'ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Employees Union vs. Management of Marathwada Gramin Bank - regarding.
Reference: This office letter No. LC-2(637)2009/MH/1278O dated 08.10.2013
Sir,
Please refer to the above cited letter wherein views on the issue of filing Review Petition/implementation of the order dated 9.9.2011 of the Hon\'ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Karamcharl Sangathan & Ors. vs. Management of Marathwada Gramin Bank, were called for.
2. The views expressed by the Zonal Addl. Central Provident Fund Commissioners as to whether review petition need to be filed or not has been examined at Head Office. Having analyzing the pros and cons of the issue, Competent Authority felt that there is no point in going for review against the said judgment of Hon\'ble Supreme Court of India.
3. All the Regional Provident Fund Commissioners-In-charge of Regional/Sub-Regional Offices are, therefore, directed not to force employers to contribute over and above the statutory wage ceiling in respect of their employees. However, option is available for the employees to contribute beyond the statutory wage ceiling if they so desire subject to the conditions enumerated under Para 26(6) of the Employees\' Provident Funds Scheme, 1952.
Yours faithfully,
(P.K. UDGATA)
Addl. Central Provident Fund Commissioner (Compliance)
From India, Mangalore
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PF query.doc
SALARY with out PF Deduction.xls