Pf Limit [Thread 196536]

sir,
can any one tell me about pf limit is it still 6500
or it has been changed to 10000
please confirm

Hi Supriya,
The 6500/- is nothing but the employer & employee contribution of PF is limited to max of 6500/- on their Basic per month.
ie. even though employee basic exceeds 6500/- then PF contribution can be restricted to 6500/- to reduce the Admin charges which are going to paid by the company.
Jeeva
9343753361

hi, getting some one exempt or excluded from PF should hv salary more than 10000/-. 2ndly pf will be deducted only on 6500/- if some one is covered and having salary less than 10000/-.if u get more clarification write to me [Login to view]

Dear SarithaJi,
BOnus elegibility limit and ESI limit only raised to Rs.10000.
PF Limit is remains as Rs.6500

Dear Friend,

It is not the PF which is limited to Rs.6500/- it is the limit towards pension fund from the contribution made by the employers;

There is not limit for the PF contribution. 12 % of Basic Plus DAs will be the individual employees contribution towards PF.

Employers are also required to pay the similar amount in addition to charges such as EDLI payment and admin. Charges.

Out of 12 % of the contribution made by the employer an amount of Rs.541(8.33 % of 6500) or 8.33 % of the basic+da of individual will be made to Pension fund, remaining amount beyond this limit will be remitted to the individual members in Employers’ head of Account.



Example – A

If the basic + Da of an employee is Rs.10000/-

a) The employer’s contribution towards Pension Fund is Rs. 541/-

b) The employer’s contribution toward PF is Rs.659/-

[i.e – Rs.10000 X 12 % = Rs.1200.00

Pension Fund 8.33% of 6500/- Rs. 541.00

Balance – Employers PF Cont. on member- Rs.659.00

Example – B

If the basic + Da of an employee is Rs.6000/-

a) The employer’s contribution towards Pension Fund is Rs. 500/-

b) The employer’s contribution toward PF is Rs.220/-

[i.e – Rs.6000 X 12 % = Rs.720.00

Pension Fund Rs. 500.00

Balance – Employers PF Cont. on member- Rs.200.00

Regards

Balamurugan Sivaprakasam

Head-HR

ICIL-MM Nagar