Partner - Risk Management
Freelancer In Hr &indirect Taxes For
Asst Manager Hr & Admin
Sr.manager - Hr&admin
Compensation & Benefits And Hcm Module
Hr / Manager
Its not statutory to deduct the PF from the employee who are all crossed the ceiling of Rs. 15000 /- per month. But still if your management wants to continue the benefits to the employee, you can deduct for Rs. 15000/- and pay the pf for the employees who are all crossing their ceiling.
employee may contribute up to or more than 15000 pm...but employee cont.only up to 15000 pm i.e. ceiling limit.
employee wants to pay more cont. permission of the authority sd be taken.i.e. from p.f. authority
Once a person is covered under the PF act and has PF account, he is required to continue to be a member of PF and it is necessary that both the employee and employers contribution must be paid each month. The rule however, is that you are required to compute PF contributions only on the maximum salary limit of Rs.15,000 per month. So even if his salary is higher then Rs.15,000 per month, PF will be computed on Rs.15,000 per month.
As for as you are having more than 20 employees and covered under PF, it is mandatory to contribute to PF as per norms.
You can not discontinue for the reason the salary is higher than the ceiling. Like I earlier said the contribution is Rs.1800/- for both employee and employer. However if the employee wants pay more he can do so after obtaining approval from the PF Dept. under Voluntary Pension Scheme. I hope I am right
PF:1. Employees share
PROVIDENT FUND 12% of basic
2. Employers share 12% of basic of which 3.67% goes to Provident fund and remaining 8.33% goes to Pension fund
(PF is calculated on 12% of basic, where the maximum deduction should be 1800 or whichever is less- i.e. basic should not exceed 15000/-)
Please do clarify my below doubts with regards to EPF Calculations.
Case a) An employee with first time employment who's EPF Wages (Basic+DA) are more than 15000, shall i cover under EPF....? If yes, why? and i need a supported document or statement
Case b) An employee with existing membership of EPF, joined in a new company who's EPF wages crossed more than 15000, shall i cover under EPF? if yes, why? and i need a supported document or statement
Case c) An employee with withdrawn account, due to non employment for 3 months hence, the money withdrawn from the EPFO and joined in a new company with more than 15000 of EPF wages. Shall i cover under EPF? if yes, why? and i need a supported document or statement
Appreciate an update on the above doubts with relevant proofs.