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Dear Mr.Yadav, EPFO, Mumbai
For my information, kindly inform me, under which Section of EPF & MP Act, 1952 or Para of EPF Scheme 1952, it has been made mandatory to apply to Commissioner for contributing to VPF and where is the ceiling of 20% on VPF mentioned.
Also kindly inform me, is there any provision in the Scheme to refuse interest on PF accumulations of an employee if he is contributing over and above the mandatory limit.
Request your input as we have to make a corporate policy and supporting documentation.

From India, Mumbai
Wage ceiling for PF is Rs. 6500/- (Basic)
Employee conntribution (12% on Basic) goes to PF Account No 1.
and Employer contribtuion (12 % on Basic)
Account no 10 (Pension Fund) 8.33 % up to Maximum limit of Rs. 540/- and rest (3.67%) goes to Account no 1.
Rs. 10000 Gross is wage ceiling for ESIC w.e.f 01.10.2006.

From India
Dear All,I am working as HR executive in small Pvt. Ltd. company (employee strength 30), Please advice on the following:We reached 20 employee strength in June 08, and applied for PF No. by submitting challan and other docs. As per company policy, for those who have basic salary >6500, we are deducting 12% of 6500 instead of 12% basic.However, as per management decision, salary structure is being changed w.e.f. 1st July 08. Please advice me how to proceed with PF deductions for the month of July afterwards. How much should I deduct for PF for those employees whose basic salary is now more than 6500 but earlier it was less.Is it permissible as per the law? please reply as early as possible. your help will be highly appreciated.With regards,Jasmine Naik
From India, Mumbai
Dear Jasmine,
Simply Have a consent from the employees who has got an increment and now their Basic+DA has crossed 6500/- saying that whether they want deductions at a higher rate or the Rs. 6500/- at the same time make them understand Employer will not be liable to pay more than Rs. 780/- (12 % of 6500). If they Agree to deduction @6500/- Matching Cont. will be a Paid by Employer and If They Tend to Get deducted ata higher rate Employer Will pay at limit, However looking at employee's welfare employer is also free to contribute at a higher rate maximum up to 24 % of Basic both in case of Employee and Employer.

From India, Delhi
hi try to contibute more for the employee from the employer side we can satisfy and get our work done
From India, Madras
PF deduction should be on BAsic + Da but let suppose gross salary is 50% basic 25 % hra and 25% con then deduction of PF on basic is correct.
Is any law for the same bcoz i am not able to find any goverment MO on same.:icon10:
Sanjay Purohit
Sr. HR.

From India, Lucknow
hi Ryan, i know taht the limit of ESIC is 10,000 but the 10,000 need to be gross salary or salary after deducting P.F.??? Please help Jyoti.

The employee is on probation for 6 months. Is it correct that he needs to pay PF only after he gets a confirmation? Kindly clear this Kavita Mumbai
From India, Mumbai
Hi Kavita, It is not correct that cont towards PF can be only after confirmation. As per Act the PF cont need to pay since the day of joining. Regrds, Sanjay Gupta, Noida
From India, Delhi
Dear Members,
we take a example of a new company, where the company had a roll of 50 people and all employees basic salries are more than 10000/- , whether the PF act applicable or not, what more compliance we have to do in this case.

From India, Mumbai

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