Ravi5554
Asst.manager -hr
+3 Others

Thread Started by #neetubisht9@gmail.com

Dear Seniors,

Kindly furnish me appropriate answer for my query as mentioned below:-

As we know that pf ceiling limit is going to be enhanced from September 2014 onwards upto 15000, before it was 6500 .

previously If any employee who was having basic more than 6500 per month, then it was optional for him to choose PF deduction or not. (let assume that in this case employee monthly drawn salary is 12000 p.m )

Gross=Rs.12000

Basic (60%)=7200

so he can be exempted from PF Deduction./ if company wishes, can provide the pf facility over 6500. (780 per month)

My query is that now form September 2014 onwards. according to new rule those all employee who are drawing less than 15000 pm will be liable to have PF Deduction on monthly basis on the over all amount of basis.

Thus those all employees will require new registration for EPF form sep 2014, who were not enrolled in epf in the past due to old ceiling limit of 6500????

Will it create any problem to employer??

kindly provide your valuable suggestion at earliest. looking for appropriate reply .

Thanks

Neetu Bisht


4th September 2014 From India, New Delhi
Hi,
1. yes, Employee and employer need to contribute the amount on 15000, above 15000 employees have the option to join.
2. In this case employer can limit his contribution to 15,000
3. employer will not face any problem, just find the employees over 6500 and enroll them from 1 st of September.
4. Same ECR generation as earlier.
4th September 2014 From India, Mumbai
Dear All,
In addition to the discussion, I have attached my understanding with three scenarios for the period before ceiling increase and after increase.
Please confirm whether I am correct in my understanding.
Regards,
Arul Prakash D.
6th September 2014 From India, Madras

Attached Files
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File Type: xls Pension Wage Ceiling Increase Impact.xls (18.0 KB, 528 views)

Hi Arul
Those employees (if new to PF) having basic more than Rs.15000/- EPS (8.33%) should not be given. It should be added to EPF. But for exisiting employees, EPS can be given even if basic is more than Rs.15000/-, but 1.16% amount is to be given to Cenral Govt (how to pay is also a question)
The best idea is to restrict EPS to Rs.15000/- and calculate Rs.1250/-
This is my understanding.
Thanks
Mahesh.H.M.M
6th September 2014 From India, Bangalore
[QUOTE=neetubisht9@gmail.com;2175574]Dear Seniors,

Kindly furnish me appropriate answer for my query as mentioned below:-

As we know that pf ceiling limit is going to be enhanced from September 2014 onwards upto 15000, before it was 6500 .

previously If any employee who was having basic more than 6500 per month, then it was optional for him to choose PF deduction or not. (let assume that in this case employee monthly drawn salary is 12000 p.m )

Gross=Rs.12000

Basic (60%)=7200

so he can be exempted from PF Deduction./ if company wishes, can provide the pf facility over 6500. (780 per month)

My query is that now form September 2014 onwards. according to new rule those all employee who are drawing less than 15000 pm will be liable to have PF Deduction on monthly basis on the over all amount of basis.

Thus those all employees will require new registration for EPF form sep 2014, who were not enrolled in epf in the past due to old ceiling limit of 6500????

Will it create any problem to employer??

kindly provide your valuable suggestion at earliest. looking for appropriate reply .

Thanks

Neetu Bisht

Hi Neetu

I have understood as follows:

1. Those employees whose basic is less than Rs.15000/- should get enrolled into PF (if they had not enrolled before since their basic was more than Rs.6500/-)

2. Employees new to PF (that means not new to company) and basic is more than Rs.15000/- EPS should not be contributed but to be added to EPF. In other words, they will not be eligible to get pension. They have to find out different options like NPS, etc.

Thanks

Mahesh.H.M.M
6th September 2014 From India, Bangalore
1.EPS limit in A/c-10 restricted to 1000/- only, remaining amount will be credit in EPF A/c, Same as earlier.
6th September 2014 From India, Mumbai
Hi Aditya
I think your perception of Rs.1000/- (minimum amount) is wrong. In that case employees whose basic is 8000/- or less, EPF amount becomes negative.
I checked with PF department. They said minimum pension payable by them to the dependents is Rs.1000/-. If EPS is more pension amount will also be more
Thanks
Mahesh.H.M.M
6th September 2014 From India, Bangalore
Hi,
Dear Mahesh,
1.Can you tell me Earlier EPS A/c-10, limit. i.e 541
2. Same case i said may be 1000/- restricted to A/c 10. Lower amount will also be calculate as earlier process.( 8000*8.33%)
May you right 1000 may limit of pension to dependents but still i have not confirm.
6th September 2014 From India, Mumbai
Dear Aditya
Before we were limiting EPS to Rs.541/- (not paying more than that) Now it will be Rs.1250/-. If you pay more than Rs.1250/- towards EPS then 1.16% on salaries are to be paid to Central Govt (procedure of paying is not clear to me yet)
Thanks
Mahesh.H.M.M
6th September 2014 From India, Bangalore
As I can know that pf ceiling limit is going to be enhanced from September 2014 onwards upto 15000, before it was 6500 . Now, any change or effect on percentage(%) of PF account ?
6th September 2014 From India, Mumbai
Hi Paul
Admin charges % rate is same as before. But the value increase because of change in slab.
The increase will happen if you had restricted PF to Rs.6500/- only (even if your basic would have been more than Rs.6500/-)
If you were to be paying PF on full basic, then admin charges will not differ.
For example, if your basic were to be Rs.20000/- but paying PF on Rs.6500/- then admin charges was Rs.6500*1.61%
Now it will be Rs.15000*1.61%
If you were to be paying PF on full Rs.20000/- then your admin charges were to be Rs.20000*1.61%
Now also it will be Rs.20000*1.61%. Only EPS will change from Rs.541/- to Rs.1250/-
Thanks
Mahesh.H.M.M
8th September 2014 From India, Bangalore
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