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..
12th October 2007 From India, Ahmadabad
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.
Kasin Ravi Kumar.
15th October 2007 From India, Hyderabad
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...
15th October 2007 From India, Ahmadabad
We shall thank you to please arrange to guide us on the following two issues.
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 ?
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.
25th March 2009 From India, Ahmadabad
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
3rd September 2009 From India, Bangalore
The distribution of employer and employee contribution in Provident fund account is actually applied on basic salary. On your basic salary there will be 12% employee as well as 12% employer contribution.
Suppose your basic salary is 8k in any company, then the employee contribution will be Rs.960 (12% of basic salary) on the other hand employer contribution will also as well Rs. 960(12% of basic salary).
The total amount that will be credited in your PF account will be 960+960= Rs.1920
Here the thing to remember is that basic salary in any organisation is generally low, the reason is an employer will pay a tax on employees basic salary. If they decide a higher basic salary then the tax on the particular employee will also be higher.
Hope this will help. In case any other query or questions you may get help from https://www.bajajfinserv.in/insights...know-about-epf
15th February 2019 From India