Provident Fund Deduction On 20,000 Or 15,000 - CiteHR
Jeevarathnam
Sr. Manager Hr/admin
Rahul01g@gmail.com
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Vidyesh Kul
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Dear All,
I'm working professionally with a company where my basic salary is Rs. 20,000, but my employer deduct my Provident Fund on Rs. 15,000.
As per my opinion, my contribution should be
= 20,000*12% = 2400 (Employee Contribution)
But my contribution on my Salary Slip
= 15,000*12% = Rs. 1800 (Employee Contribution)
My employer deducts employer's contribution on Rs. 15,000.
I would like to know that, which one is correct.
Either me or my employer.
If there is any notification regarding this, please share.

Hi
As your basic salary is exceeding the ceiling limit of 15000/- then PF shall be contributed on the ceiling limit only. So your EPF contribution shall be 12% on 15000/- (15000 X 12%=1800) is correct only

Dear Jeevarathnam P, In my previous organisation, they had deducted the employee contribution on actual basic. Suppose If X employee basic is Rs. 30000/- Then X contribution is Rs 3600 Please advice.
Your Employer is correct because EPF limit is 15000 decided by EPFO
AS PER PF REGULATION, EMPLOYER ARE MANDATORY TO PAY EMPLOYER CONTRIBUTION ONLY ON RS 15000( THIS IS RECENTLY REVISED WAGES , EARLIER IT WAS RS 6500).EMPLOYER AT FREE WILL CAN PAY MORE MATCHING 12% CONTRIBUTION
HOWEVER YOU CAN CONTRIBUTE 12% AS EMPLOYEE CONTRIBUTION. HOPE THIS CLARIFY YOUR QUERY

As per the new amendment after increasing the pf slab from 6500/- to 15,000/- employer has to deduct PF contribution for Rs.15,000/- for those who drawing salary more than Rs.15,000/- and actuals for those who drawing less than Rs.15,000/-. This is for your information. If you want to contribute more for employee contribution you will do that but your employer will contribute for Rs.15,000/- only.
@EmployeeIBM,
Please check copy of your offer letter, appointment letter which shows salary breakup. The employer's contributions to PF is shown as Cost To Company. Does it shows PF as 12% of Basic or 12% of 15000?

Hello,
Your employer is right, Legally he is bound to deduct employer's share on 15000, But if he is -desirous he can do it.But you cannot compel him to deduct on 20000. Here is the clear cut explanation of contribution.
EPF employees provident fund calculation,EPS,EDLI,Admin -----
The article tells you the ways to calculate EPF Calculation.
Thanks

dear sir agar salary 18000 per month hai to 12% hamary salary se nahi kata ja sakta agar kata ja sakta hai to koi gazetted notification hai plz Reply.
sir principal employer 15000 se jyada par pf dena chahta hai like 16000 to kya hame 16000 par pf lena chahiye

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