Understanding Employees' Provident Fund: What Details Should HR Focus On?

akhilesh dubey
Dear HR Fraternity,

Just have a look at the attachment for details of Employees' Provident Fund.

Regards,

AKHILESH KUMAR DUBEY
SAP-HR CONSULTANT
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jayakumarraju.ym@rediffma
Dear Seniors,

Kindly verify the following details in PF:
1) The Administrative charges (A/c No.1) payable whether on Basic + DA
2) The Inspection Charge 0.01% to be restricted to Rs.6500/- or on Total BA+DA payable
3) EDLI Charges 0.5% whether to be restricted to Rs.6500/- or on Total BA+DA

CLARIFICATION ABOUT CONTRIBUTION

AFTER REVISION IN WAGE CEILING FROM Rs.5000 to Rs.6500 w.e.f. 1-6-2001 PER MONTH, THE GOVERNMENT CONTINUES TO CONTRIBUTE 1.16% UPTO THE ACTUAL WAGE OF MAXIMUM Rs.6500 PER MONTH TOWARDS EMPLOYEES' PENSION SCHEME. THE EMPLOYER'S SHARE IN THE PENSION SCHEME WILL BE Rs.541 w.e.f. 1-6-2001.

UNDER EMPLOYEES' DEPOSIT-LINKED INSURANCE SCHEME, THE CONTRIBUTION @ 0.50% IS REQUIRED TO BE PAID UP TO A MAXIMUM LIMIT OF Rs.6500. THE EMPLOYER WILL PAY ADMINISTRATIVE CHARGE @ 0.01% ON THE MAXIMUM LIMIT OF Rs.6500.

THE EMPLOYER ALSO WILL PAY ADMINISTRATIVE CHARGES @ 0.01% ON THE MAXIMUM LIMIT OF Rs.6500, WHEREAS AN EXEMPTED ESTABLISHMENT WILL PAY INSPECTION CHARGES @ 0.005% ON THE TOTAL WAGES PAID.
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