Navigating PF Contribution Changes: How Do I Handle Employee Requests in a New MNC Role?

Hi Friends,

Can anyone send me the rules of PF issues to follow? I will be very much grateful to them because I joined a big MNC in Statutory and Payroll of the company. Also, we have RPFC as well as Trust (I need some information about the Trust as well).

One of our employees wants to increase his PF contribution. How can I proceed with it?

Kindly help me. I will be waiting for a reply.

Regards

Dear friend,

Instead of a list of issues to follow, can you provide me with your specific query? This will help me to answer your question or clarify any doubts.

Regards,
Martin

Check the attachment; it's really useful. Cheers, Sanu :)

Dear Sangeetha,

That was a good help. If I understand it correctly, does the employee pay 12% of basic + dearness or is it just 12% of the basic wage? Additionally, does the employee pay 3.67% of basic + dearness or is it just 3.67% of the basic into PF, and 8.33% into the pension scheme? Please guide.

Thank you.

Is PF mandatory for all basic ranges, or is there an upper limit after which it becomes optional?

Thanks a lot, Abhi. I have understood the procedure of PF calculation. Now my problem is, what is a challan and account numbers 1, 2, 10, 21, & 22? I mean, a challan is for depositing money in the SBI bank in favor of PF organization, but how will I set up these accounts first? Is it by going to the PF office? Don't we require to deposit the money in the employees' PF account numbers? But in this format, it's not asking for it.

Hi Friends,

A simple way to compute PF:

Contribution- both employer and employee should contribute 12%

1. Employer Contribution - 12% of Basic Salary of Employee (It fully goes to PF)
2. Employee Contribution - 12% (8.33% goes to Pension and 3.67% goes to PF)

So, the total contribution of 15.67% (both employer and employee) goes to PF, and generally, employees who are receiving above 6500/- rupees means PF contribution of employees is optional.