PF Contribution Limit

Dear Friends,
From begining our company is paying PF of employer and employee contribution at 12% +12% of basic even though the salary is more than 6,500pm. From 2009 we would like to rectrict the contribution only on 6,500/pm. Please let us know if any restrictions for changing the policy?

Hi
No Dear you can not change the policy.
At the starting you would have done that.But once
you have started deducting on more then 6500 then
its over .
Its one way traffic.Hope you got my point.
Reagrds
Rajeev Dixit

dear
for existing employee you can not change as mentioned by mr rajeev for new joinings
you can adopt this policy.
tks
j s malik

You can not make any changes in the existing one, but you can limit PF contribution upto Rs.6500/- only for new employees.
Regards,
Sivadasan

HI,
For new employees u can start from keeping a basic of around 50% of their salaries,
in our company, we give min. 4500 as basic and increase some amount in basic and other slabs every time the increment is done. Once basic reaches 6500, we ajdust the amount in rest of slabs but the PF remains at 12%.
for e.g if one person's basic is 12000, even then the PF will be contributed on 6500 only.
Gunjan

Hi all,
I am new join in this site and also I am new in hr department as a executive team member of compliance. I am a student of BA 1st year (Exam-july-09) of kolkata univercity,can I do MBA with BA and where ? Please give me information.
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Thanks & regards
uday Shankar
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i had an query is there is any limitation for fixing up the basic in percentage whether it must be 50% or 60% help me dudes

Vasanthpriya,
As per my information, basic can not be more than 50% of the total salary. We used to keep it between 45-50%.
Basic: not more than 50%
HRS: should be lesser than basic (less by 1-2k atleast)
conveyance:not more than 2500/pm
Also, we dont make much changes in medical allowances as one can get tax rebate on max 18000 rs per annum (1500rs/month) as medical expenses.
Other allowance: no limit.
Gunjan

Hi all,
I had an query is that, what is the limit of PF duduction Rs. 6500 or 10000/- per month.
regards,
Sujith