Regarding PF Deduction If Basic Is More Than Govt Ceiling

Hi,
Ask them to check appointment letter at last page of Salary Break up, if is not there give mail on the same to employees so that then can understand the statutory requirements.

Hi,
PF deduction is restricted only to employers contribution of Rs.650//- (ie Rs.780/-), why do you want to restrict on employees deduction, you can deduction PF on total value of Basic & DA.
Regards,
Mubarack
Senior Manager -HR

I agree to what Kumar says. As per the EPF Act the maximum salary ceiling for deduction of PF is 6500. Again there is a clause, if the member wants to contribute on his entire basic he can do so and the employer may restrict his contribution to the ceiling of 6500.

Of course, employee at his/her own discretion can contribute to his/her PF even if salary crossed over and above Rs.6500/= but employer cannot be compelled to follow suit as they normally restrict their contribution only upto Rs.6500/=. There are employers who contribute without this restriction as a gesture. But most of the 'Exempted Employer" who have set up PF Trust apply this restriction upto Rs.6500/= because of imbalance in the interest earned and disbursement commitment to PF members.
kumar.s.

DEAR ramyachary
YOU CAN ADD ONE COLUM IN PAYSLIP MENTIONING PF BASIC AS RS.6500/-JUST BELOW ACTUAL BASIC WHICH WILL SOLVE YOUR PROBLEM
REGARDS
NILESH SONI
9869477332

Dear Sir,
If the basic is higher than 6500, You can mention the actual basic (ie 10000) & for PF contribution you can show Rs.780/- In the pay slip also you can mention Rs.10000/- as basic. If the employee wants any clarification, you can explain that employer need not contribute more than 6500. (upper celing limit)
Now a days I heard that for PF contribution, except HRA, they will include all the allowances

Dear Sir,
If the basic is higher than 6500, You can mention the actual basic (ie 10000) & for PF contribution you can show Rs.780/- In the pay slip also you can mention Rs.10000/- as basic. If the employee wants any clarification, you can explain that employer need not contribute more than 6500. (upper celing limit)
Now a days I heard that for PF contribution, except HRA, they will include all the allowances
R.Dhamodhara kannan

Dear Ramyachary,
After PF deduction of Rs.780/- whatever additional contribution calculate for member who has basic salary more than 6500/- the remaining amount will goes into Pension account.
Santosh M.

DEAR SANTOSH M,
YOUR STATEMENT IS TOTALLY WRONG, PLEASE NOTE THAT PENSION CONTRIBUTION IS A CO"S PART AND THERE IS NO DEDUCTIONS FROM SALARY OF PENSION CONTRIBUTION AND IT IS FIXED 8.33% OF BASIC+da MAX IS rs541/-
SO PLEASE UPDATE YOUR KNOWLEDGE AND DO NOT POST WRONG INFORMATION.
NILESH SONI
9869477332

Dear Member,
It is not that big problem on which you have sought clarification. you can simply show your gross pay in one column and in another column you can mentioned as 'PF wages' ,which can be restricted to prescribed limit of Rs.6500/- on which you can deduct the PF contribution.
BS Kalsi
Contributing Member