Provident Fund Deduction - Pf Deduction

Hi,
We are a new company and have just completed hiring 20 people. PF formalities have started but we will be getting the PF Allotment number by April.
PF deductions have already started.
Can any one please let me know if after the allotment the deductions from Jan till date would have to be submitted or the deductions should start after getting the PF Allotment number?
Please advise

Hi,
Pf deduction should be done from the month when 20 0r more employees are on rolls.
Regards,
Prabhu

We are a new company which has crossed 20 employees in Jan. We have applied for PF in early Feb and have still not received the registration no. Our queries are as follows:-

• Do we need to deduct the employees part Jan onwards in Jan salary itself? If we assume the answer is yes, there is a further query, i.e. We pay the Jan amount along with the application. What happens to the amount post Jan, till we receive the registration, i.e. till around April. Don’t we become a defaulter for having deducted the amount and not paying to the government coffers ( as we don’t have the registration no. still). As far as income tax is concerned, that is a default (u/s 43B). What as per the PF Rules?

• Is it ok on behalf of the employer to pay from itself and deduct from the employee for the intermediate period (of say 3 months) once the registration is received? Any default in compliance if we structure it this way? OR Shall we deduct from the employee for all the three months once the registration no. is recd.

Pf deduction should be done from the month when 20 0r more employees are on rolls
This is jeevanandam HR Saint Gobain Glass India Ltd
My cell No:9 9 9 4 5 8 9 4 4 6
any doubt on PF ESI call me no problem

Dear.
Pf is applicable to all 20 employees
right from their induction. If their basic
salary is less than
Rs.6500.

U can pay p.f later also , but usually EPF dep charge u Penal charges at the end of the year. i suppose at the time of ragistration process u might have paid Certain amount.u can submit challan after getting ragistration but thing is that u have to be ready to pay penalty .

Mr. sudiptarc
Please note that you can deduct PF from the salary / wages of employees from the date of employees strength > 20. Further, you can deposit employees and employer's contribution along with Administrative & other charges (total @25.61 %) of each month i.e. from January till you get PF code Number. while depositing the said amount through PF challans and submission of monthly return in Form 12-A, 5 & 10 as well as Form No.2 you can mention on all documents that "Applied to PF Authority for PF code Number" so that there won't be any penalty / late fees for the same and your company will not be considered as defaulter.
You can mention PF code number on all documents from the date your company is allotted PF code number in April by the PF authority.
Regards,
NKJ

Dear Arunoommen
Kindly confirm, as to PF contribution from the employee part is not restricted. Employee can contribute 100% of his/her salary?
What I Know about the PF contribution, that employee can make contribution from 12% - 20% of his Basic and DA?
I have thoroughly gone through your research, and agree with most points about PF, kindly clarify this doubt?
Thanks and Regards,
Deepak Sabharwal

Dear All
This is in context to Md.Ashfaq.Ahmed's statement that PF is applicable for employees having Basic less than 6500/-.

Its very clear that 12% is deducted on allowances other than exempted ones like Conveyance Rs 800/m , Child allowance Rs 200/m for two children,Medical allowance Rs 15,000/ per annum & LTA.

The PF contribution is 12% of Basic salary from both employee and employer. For the calculation the maximum limit of Basic is Rs 6500/-. It means even if the employee's basic salary is above Rs 6500/- the employer is liable to contribute only on Rs 6500/-, that is Rs 780. However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. I explain you the various accounts of PF challan.
Employee Employer
A/c No 1: PF contribution Account 12 3.67
A/c No 2: PF Admin account 1.10
A/c No 10: EPS account 8.33
A/c No 21: EDLIS account 0.50
A/c No 22: EDLIS admin account 0.01
12 13.61

PF admin charge = Employer has to pay 1.1 % of basic
EDLIS: Employer has to pay 0.5% of basic
EDLIS admin charge :Employer has to pay 0.01% of basic
Total additional percentage employer has to pay: 1.61% of basic
So employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of basic.
Employees complete 12% goes to PF account while employer contributions' 8.33% goes to Pension fund and 3.67% goes to PF fund.

Regards

(Rajiv Ranjan)

one of my employee having Basic of 20000/- , and he wish to deduct his contribution at minimum of 6500 /- i.e 780. Organisation's contribution is definatly limited to 6500, but is it possible to deduct employees contribution at 6500, though he is having higher Basic salary.