PROVIDENT FUND - distribution of employer/employee Contribution? - CiteHR
Jeevarathnam
Sr. Manager Hr/admin
Amitmhrm
Hr Practices
+4 Others

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According to the PROVIDENT FUND ACT OF 1952.
Employees Contribution is 12% basic wages goes to the PF.
Employers contribution 12% (8.33% goes to the pension ) and 3.67% goes to the PF.
And i'm totally confused about this provident fund. Can anybody help me in this regard.
K. Ravi Kumar.
(Ph: 09989111149)
Hyderabad

Dear Ravi,
You are very much correct, PF is deducted @12% of basic salary from both the employee as well as employer.
Out of this 12% of employer, 8.33% goes to pension fund whereas rest 3.67% deposited to the PF fund only..
Moreover employer is required to pay some Administrative charges also..
Regards,
Amit Seth.

Dear Amthseth,
Thank you very much for your guidance. And i want another help from you, till now i've posted 6 queries and my INBOX IS EVERY TIME IS SHOWING (0), and why i'm not getting the replies. And why my inbox is 0. Please help me in this regard.
Thanking you
Yours faithfully,
Kasin Ravi Kumar.
Ph: 09989111149

Dear Ravi Kumar..
Inbox is not related with your posts..
It is been used for personal messages.. when you will get a message then only it will show your percentage of uses..
The posts you made is been managed on the active desktop.. To see the reply on your post, click over my posts.. there only you will see the replies you have get over your posts..
Hope your query must have been solved...
Regards,
Amit Seth.

Guidance Requested Please

We shall thank you to please arrange to guide us on the following two issues.

1.
Whether the procedure and permission under Para 26 (6) of the PF Scheme is for equal contribution by the employee and the employer beyond the salary limit of 6500 per month or is it only to pay the administrative charges ?

2.
Whether an employer can be compelled to continue to make his contribution of the amount which the employer had statutorily agreed as per the procedure and permission under Para 26 (6) of the PF Scheme and had been making in the past ?
We look forward to your kind guidance / reply.

Thanking You,
Yours sincerely,

Thanks Amit, Informations regarding PF that you have given is really useful. But I think for pention fund there is some age conditionality also. Regards Goutam Tapedar 9934370039
Pension is applicable only till age of 58 years. following which employer's contribution for that particular employee will go to his PF account.
bhavik h chheda
Chheda Consultancy Services main

If provident fund is being deducted by the company, then please inform in which case the company has to contribute equal amount of provident fund - Ramesh Kumar Sehgal-91-9990217028
Dear Krishna Ravi!

As per the payslips of both of you I can understand one thing.
1) Your colleagues gross is more than 10000/- so he is not

eligible for ESI so there is no deduction on the same.
2) The payslip clearly shows that PF is deducted on the entire

basic & there is no ceiling limit of 6500/- So even the PF

deduction is also correct.

3) In your case Performance incentive is not the part of the

Gross where in it depends on your performance & it varies

month to month. So for ESI calculation they will not add for

deduction of 1.75% of EE contribution.

In your case Pension fund is 396 & PF is 174. This Pension

fund & PF is company contribution. your entire contribution of

PF will go for PF account itself. so totally PF is 570+174=744

& Pension Fund is 396.

In your colleagues case it is entirely different. if the

company is restricting its contribution for max of 6500/- then

541 is Pension fund & 239 is PF. totally his PF is

2101+239=2340 & Pension fund is 541. If even the company is

contributing as same as the employee then his pension fund

will be 1459 & PF will be 2101+642=2743

I hope now you will be clear

If more doubts u can reach me on 9343753361

Cheerz
Jeeva

We have required some details of Providund Fund implication in a firm. So how many employee required for PF implication. Our instiute as a Colledge & our Employee-25. Pl. give all information for PF implication or not implication matter.
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