Reg Pf Limitation........ - Ppt Download

Hi to all,

Can anyone clear my doubt about PF? I know the PF contribution and ceiling amount (6500/- – please mention any updates in this amount?), but is there any minimum or maximum amount of contribution? For example, if the person is earning more than 6500/-, does it mean PF contribution is optional, right? Is the same percentage (12% + 3.67 = 15.67) applicable to all employees, or is there any limit to this?

Please mention which type of industries/companies/organizations are covered under the PF Act. Is it compulsory for all industries?

Thank you.

Dear Brindha,

Regarding PF Contribution - Employer should pay 12% of Basic salary, in which 8.33% will go to the Pension Scheme, and the remaining 3.67% will go to PF.

When calculating the Pension Scheme, the employer should pay 8.33% of the basic salary (up to Rs. 6500, i.e., Rs. 541), with any excess going to PF.

For example, if the employee's Basic salary is Rs. 8000, Rs. 541 (8.33%) will go to the pension scheme, and Rs. 419 will go to PF. However, the employer must contribute 12% of the basic salary, regardless of the amount.

Regarding Employee Contribution of 12% from basic, it is unavoidable as per the PF Act.

Rate of Contribution

Regardless of the company, the contributions should be as follows:

Employee 12% (Basic wages, dearness allowance)

Employer 13.61% Contribution:

- 3.67% = Provident Fund (A/c No.1)
- 8.33% = Pension Fund (A/c No.10)
- 0.5% = EDLIS - Employees Direct Linked Insurance Scheme (A/c No.21)

Administrative Charges:

- 1.10% of emoluments = Provident Fund (A/c No.2)
- 0.01% of emoluments = EDLIS (A/c No.22)

Total 25.61%

Warmest Regards,

Mohan M. S

Dear Brinda,

PAYMENT OF CONTRIBUTION
A/c - 1 EPF EMPLOYERS 12% + EMPLOYEES 3.67% = 15.67%
A/c - 2 EPF ADMIN CHARGES 1.10%
A/c - 10 EPS EMPLOYEES 8.33%
A/c - 21 EDLI 0.50%
A/c - 22 EDLI ADMIN CHARGES 0.01%
TOTAL = 25.61%

Please find the attached PPT for your reference.

Hi Suki,

This is for your kind information. Your PPT shows wrong information, please correct it.

Employee's Contribution - 12% + Employers Contribution 3.67% altogether 15.67% A/c no.1

Administrative Charges - 1.10% (A/c No.2)

Employers 8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS - Employees Direct Linked Insurance Scheme (A/c No.21)
0.01% of emoluments = EDLIS (A/c No.22)

Overall Contribution by the employers is 13.61%

Overall Contribution by the employees is 12%

Total - 25.61%

Warmest Regards,

Mohan.M.S

Hey Manoj, your explanation was really comprehensive. Can you also shed some light on state insurance? Thanks

I am attaching a PowerPoint presentation on EPF, EPS, and EDLI. I hope this will clear your doubt.

Dear Friends,

Kindly update me that the EDLI death benefit has been increased up to ₹1,00,000/- from this month.

Regards,
Akhilesh

Hi,

ALL smart people, could you answer my question please? About the maximum pensionable salary -> Nobody so far has been able to tell me the meaning of the following text from the EPF website - (Please read this on the government's official website -> [COLOR=blue]http://epfindia.com)

I've read the EPS 1995 scheme. As far as my understanding goes, this clause states that while calculating pension, we can CHOOSE not to limit the pension as a maximum of Rs. 541 but CAN CHOOSE to get the higher of 8.33% of basic salary!! This can mean that we CAN get a pension of more than Rs. 50,000 (rather than a meager Rs. 2,500 if we limit it to Rs. 541.) The government does not promote it because they'll have to pay a lot more pension!! But some CA who's an expert in PF can probably help. It's for the benefit of all employees!!

The clause is as follows -> The maximum pensionable salary shall be limited to 19[Rupees six thousand and five hundred / Rs. 6500/-] per month. 20[Provided that if, at the option of the employer and employee, contributions paid on salary exceeding 21[Rupees six thousand and five hundred / Rs. 6500/-] per month from the date of commencement of this Scheme or from the date the salary exceeds 22[Rupees six thousand and five hundred / Rs. 6500/-] whichever is later, and 8.33 per cent share of the employers thereof is remitted into the Pension Fund, pensionable salary shall be based on such a higher salary.] 20. Inserted ibid w.e.f 16.3.96. 19 & 21 & 22. Subs. By GSR 774 (E) dated the 8.10.2001 (w.e.f. 1.6.2001).

I read this article in The Times of India some years ago. Can a CA/PF expert please analyze the EPS 1995 scheme and let us know if there's some hidden treasure in EPS that ALL employees can get?

Regards, pegL