Friends,
The eligibility for PF is for those who are getting a total emoluments of either Rs.15000 or less. Is that right ? The next question is, at the present circumstances, suppose an employee is getting Rs.13000 as his total emoluments, for how much we have to deduct ? Should we deduct only for 6500 (the previous limit) or 13000 ?
From India, Kottayam
The eligibility for PF is for those who are getting a total emoluments of either Rs.15000 or less. Is that right ? The next question is, at the present circumstances, suppose an employee is getting Rs.13000 as his total emoluments, for how much we have to deduct ? Should we deduct only for 6500 (the previous limit) or 13000 ?
From India, Kottayam
Dear Kuruvilla,
PF is not calculated on Total EMoluments (Gross Salary). It is calculated on (BASIC+DA) or BASIC only.
If the employee total emoluments 13,000/- no clarity. See his Basic Salary, on Basic- 12%.
Example for your better Understanding.
Suppose his Basic Salary is 15,000/- ( Not Total emoluments or Gross salary)
Employee Contriburtion - 12% on 15000 = 1800
Employer Contribution - EPS- 8.33% on 15000 = 1249.5
EPF- 3.67% on 15000 = 550.5
EDLI charges- 0.5% on 15000 = 75
EPF Admin charges - 1.1% on 15000 = 165
EDLI Admin charges- 0.01% on 15000 = 1.5 (round off to 2).
I hope, I clarified your doubt, Please let me know if you have any queries.
T.Prathap,
HR Executive, Human Resource Department,
Narayana Health Group of Hospitals
Mobile:8884291530.
attribution https://www.citehr.com/504737-employ...#ixzz3D4cfRdD1
From India, Madras
29PF is not calculated on Total EMoluments (Gross Salary). It is calculated on (BASIC+DA) or BASIC only.
If the employee total emoluments 13,000/- no clarity. See his Basic Salary, on Basic- 12%.
Example for your better Understanding.
Suppose his Basic Salary is 15,000/- ( Not Total emoluments or Gross salary)
Employee Contriburtion - 12% on 15000 = 1800
Employer Contribution - EPS- 8.33% on 15000 = 1249.5
EPF- 3.67% on 15000 = 550.5
EDLI charges- 0.5% on 15000 = 75
EPF Admin charges - 1.1% on 15000 = 165
EDLI Admin charges- 0.01% on 15000 = 1.5 (round off to 2).
I hope, I clarified your doubt, Please let me know if you have any queries.
T.Prathap,
HR Executive, Human Resource Department,
Narayana Health Group of Hospitals
Mobile:8884291530.
attribution https://www.citehr.com/504737-employ...#ixzz3D4cfRdD1
From India, Madras
Dear Amritha,
Your querry is not clear. To become the eligibility to con tribute for Provident Fund his/her Basic Salary and Dearness allowance only to be taken for contribution of PF and not gross salary. The gross salary whatever it may be it does not matter Now your querry of ceiling. Earlier it was Rs.6500 (Basic + DA), Now this is increased to Rs.15,000 per month. If the Basic and DA is less than Rs.15000, the contribution should be on actual Basic and DA earned by the employee. If salary is above than 15000 per month (Basic and DA) then ceiling will be applicable either to restrict to ceiling or contribute on actual depend upon the employer.
As a employee should not skip from the contribution from the scheme as this is a sort of saving by the employee. Whatever may be whether with ceiling or without ceiling contribution should be made. This is a long run saving and is called as Bhavishya Nidhi. You believe it or not our contribution when we have joined to the scheme we use to con tribute only Rs.12 per month in the year sixties. Now you yourself can compare the past, present and future.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant
From India, Bidar
Your querry is not clear. To become the eligibility to con tribute for Provident Fund his/her Basic Salary and Dearness allowance only to be taken for contribution of PF and not gross salary. The gross salary whatever it may be it does not matter Now your querry of ceiling. Earlier it was Rs.6500 (Basic + DA), Now this is increased to Rs.15,000 per month. If the Basic and DA is less than Rs.15000, the contribution should be on actual Basic and DA earned by the employee. If salary is above than 15000 per month (Basic and DA) then ceiling will be applicable either to restrict to ceiling or contribute on actual depend upon the employer.
As a employee should not skip from the contribution from the scheme as this is a sort of saving by the employee. Whatever may be whether with ceiling or without ceiling contribution should be made. This is a long run saving and is called as Bhavishya Nidhi. You believe it or not our contribution when we have joined to the scheme we use to con tribute only Rs.12 per month in the year sixties. Now you yourself can compare the past, present and future.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant
From India, Bidar
This is Priya.
The above discussion was very useful for me, I would like to clarify few doubts I have.
In earlier PF contribution, if the basic of the employee is Rs. 6500/- they can be exempted from PF. Otherwise, 12% will be deducted i.e 6500*12%= Rs.780% was the contribution to the PF account. Even if the basic is more than Rs.6500/- flat rate of Rs.780/- was deducted.
In our Company we deducted flat rate of Rs.780/- for the employees who have above and below 6500/-.
In the above conversation I have learned that if the employee basic is Rs.15000/- and more he/she can be exempted from PF. If we calculate 12% of the basic of Rs.15000/- it may comes around Rs.1800/-. This Rs.1800/- is the flat rate we have to deduct for all the employees or we have any flat rate to be deducted.
Thanks in advance for your replies.
From India, Madras
The above discussion was very useful for me, I would like to clarify few doubts I have.
In earlier PF contribution, if the basic of the employee is Rs. 6500/- they can be exempted from PF. Otherwise, 12% will be deducted i.e 6500*12%= Rs.780% was the contribution to the PF account. Even if the basic is more than Rs.6500/- flat rate of Rs.780/- was deducted.
In our Company we deducted flat rate of Rs.780/- for the employees who have above and below 6500/-.
In the above conversation I have learned that if the employee basic is Rs.15000/- and more he/she can be exempted from PF. If we calculate 12% of the basic of Rs.15000/- it may comes around Rs.1800/-. This Rs.1800/- is the flat rate we have to deduct for all the employees or we have any flat rate to be deducted.
Thanks in advance for your replies.
From India, Madras
Hi
If the Basic wages is 15000/- or above you can restrict the contribution of Rs. 1800/-. If the basis is less then you may have to contribute 12% on the wages. Eg. if Basic is 10000/- then PF contribution will be rs. 1200/-
From India, Bangalore
If the Basic wages is 15000/- or above you can restrict the contribution of Rs. 1800/-. If the basis is less then you may have to contribute 12% on the wages. Eg. if Basic is 10000/- then PF contribution will be rs. 1200/-
From India, Bangalore
Hi All,
There are not any extra changes in rules and regulations of PF. Only the limit of PF has been extended from Rs. 6500/- basic to Rs. 15000/- basic salary. Rest of the rules are same for PF fund and pension fund.
Further PF can be deducted on actual basic salary of the employee though it would be more than Rs. 15000/-. It is certain contract between employer and employee which is mentioned in Appt Letter.
If the employee earns basic salary more than Rs. 15000/- and if he does not want to contribute in PF then employer takes FORM 11 from him and submit in PF office with letter..
Regards,
Rahul
From India, Pune
There are not any extra changes in rules and regulations of PF. Only the limit of PF has been extended from Rs. 6500/- basic to Rs. 15000/- basic salary. Rest of the rules are same for PF fund and pension fund.
Further PF can be deducted on actual basic salary of the employee though it would be more than Rs. 15000/-. It is certain contract between employer and employee which is mentioned in Appt Letter.
If the employee earns basic salary more than Rs. 15000/- and if he does not want to contribute in PF then employer takes FORM 11 from him and submit in PF office with letter..
Regards,
Rahul
From India, Pune
Dear seniors,
Pl clarify my one question please.
1.1% administrative charges will be calculated on Basic amount without ceiling of Rs. 15000/- or will be calculated on Baisc with ceiling of Rs. 15000/-
(Our Principal Employer is calculating flatly at 13.61% on Rs. 15000/- (earlier Rs. 6500/-) even if Basic amount is more than Rs. 15000/-)
Kindly clarify the same.
Regards
AHC Ansari/Admin
RailTel Bangalore
From India
Pl clarify my one question please.
1.1% administrative charges will be calculated on Basic amount without ceiling of Rs. 15000/- or will be calculated on Baisc with ceiling of Rs. 15000/-
(Our Principal Employer is calculating flatly at 13.61% on Rs. 15000/- (earlier Rs. 6500/-) even if Basic amount is more than Rs. 15000/-)
Kindly clarify the same.
Regards
AHC Ansari/Admin
RailTel Bangalore
From India
Dear Ansari,
If Employees Basic Salary is Less than 15000/- suppose 12000/-
Employer Contribution =13.61 % on 12000 = 1633.2 (round off to 1633)
If Employees Basic Salary is 15000/- suppose 12000/-
Employer Contribution =13.61 % on 15000 = 2041.5 (round off to 2042)
If Employees Basic Salary is more than 15000/- suppose 20000/-
Employer Contribution =13.61 % on 15000 = 2041.5 ( Employee contribution can be 12% on 20000 = 2400 or 12% on 15000=1800, but Employer contribution remains the same even Basic+DA is more than 15,000).
I hope, I clarified your doubt, Please let me know if you have any queries.
T.Prathap,
HR Executive, Human Resource Department,
Narayana Health Group of Hospitals
Mobile:8884291530.
From India, Madras
If Employees Basic Salary is Less than 15000/- suppose 12000/-
Employer Contribution =13.61 % on 12000 = 1633.2 (round off to 1633)
If Employees Basic Salary is 15000/- suppose 12000/-
Employer Contribution =13.61 % on 15000 = 2041.5 (round off to 2042)
If Employees Basic Salary is more than 15000/- suppose 20000/-
Employer Contribution =13.61 % on 15000 = 2041.5 ( Employee contribution can be 12% on 20000 = 2400 or 12% on 15000=1800, but Employer contribution remains the same even Basic+DA is more than 15,000).
I hope, I clarified your doubt, Please let me know if you have any queries.
T.Prathap,
HR Executive, Human Resource Department,
Narayana Health Group of Hospitals
Mobile:8884291530.
From India, Madras
Admin charges are 1.1% of the amount shown in chalan as wages . Varghese Mathew 09961266966
From India, Thiruvananthapuram
From India, Thiruvananthapuram
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Employer-PF-res trict to wages of Rs 6500.pdf