New PF Related Information - CiteHR
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AxitaMehta Executive
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Hi All,
As per the notification the PF has to be deducted for the employees whose "basic" is upto 15,000/-. Is this the right interpretation?
Also, in relation to the same, there's an employee who says that he doesn't want to get his PF to be deducted & want his salary in hand. He's currently drawing 22,000/- & his basic is 11,000/-. The organization has been deducting his PF so far. Is this possible to stop the PF now & take some written notification from employee for not to deduct PF.
Looking forward for revert at earliest so as to how can I help the employee in getting all in hand salary.
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Hi Axita
1) Your interpretation for deduction of Basic upto 15,000/- is correct and there is some change in that. If at all any employee had PF contribution & due to increment in his/her salary & basic exceeds 15,000/- you should stil contribute PF for the ceiling limit of 15,000/-
2) If any employee is already contributing for PF, He/She can't opt for exemption even if the basic wages above 15000/- if any employee drawing the basic wages below 15000/- then its mandatory to contribute
Dear All, please take a note that any employee join on or after 1.9.2014 drawing Basic+ DA exceeding Rs. 15000/- and is not having PF membership in existence in earlier employment then if such employee joins as member of PF then his employer contribution will not be diverted to Pension contribution. The EPFO does not want to extend pensionary benefit to new lot of employee drawing basic+DA more than 15,000/- p.m.
what is the basic criteria of basic in the PF , and is there any new amendments related the PF and revision in Basic (60%) related PF
Hi Axita,
With effect from 1st September-14, PF ceiling has been raised from Rs 6500/pm to Rs 15000/pm (Basic,DA &Retention Allowance).So you are right in your interpretation to the effect that PF contribution shall be deducted from the salary of an employee who is drawing a salary not exceeding Rs15000/pm.
With regard to your second query,you should continue to deduct PF contribution from the salary of the employee drawing a basic Rs 11,000/ pm. Since he has been covered under PF Act, he can not be exempted at this stage from paying PF contribution.
Dear All,
Please clear that if some is getting RS.22000/- as salary and the basic is rs.11000/- in present pf is not applicable to him, from the month of sept,14 company management increase his basic from 11000/- to 16000/- but gross is still 22000/- to avoid pf liability. please give the answer what can employee do so can his pf also can deduct.
Hello All, Thanks for all the revert here. I understand that the employee will have to get his PF deducted,since it’s already been deducted, even if his/her basic now goes above 15,000/-.
Please clarify whether an employee who is member of PF scheme prior to 1/9/2014, has the option of having PF deduction only upto Rs.6500/- Regards Sharad
Dear all,
i have a question to raise, we have a employee who's earlier used to draw salary of Rs. 12,000/- now after appraisal scheme his salary is now Rs. 14,000/- p.m, is he liable for "PF" deduction??
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