Understanding PF Contributions: Is the Rs 780 Limit Inclusive of Admin Charges?

Hello Seniors,

I just wanted to know if the limit of Rs 780 as Employer Contribution is inclusive of extra charges (PF Admin & Inspection, etc.) or is it exclusive, i.e., basic x 12% = 780 (limit for employer) + Admin Charges. Please clarify.

Employer's contribution of Rs 780 (i.e., 12% of Rs 6500) is excluding Administration Charges, EDLI contribution, and Administration charges on EDLI.

Regards, Madhu.T.K

Dear Employer,

The employer contribution is 12% of 6500 (Rs. 780) + Administration charges are 1.61%, so the total employer's contribution is 13.61% of 6500.

Akshay
9892366434

Your question on whether the contribution is exclusive or inclusive of "extra charges" has been answered correctly by Mr. Madhu T.K. However, you must study the Act properly to understand that the usage of the phrase "the limit of Rs 780" is not correct. Depending on the employer's employee-friendly policy, it can go up much higher. The Act does not put a cap on Rs. 780.

Noted, Mr. Hansdah. However, the act does mention the basic salary taken into account for deduction to be a maximum of Rs 6500. What would the outcome be if the employer doesn't want to contribute above the limit of Rs 6500 x 12%, wherein he has also excluded quite a few employees by showing a minimum basic above Rs 6500 per month?

Regards,
SS

[QUOTE=28677c5420521383353edc6e6;1111605]Hello Seniors,

Just wanted to know if the limit of Rs 780 as Employer Contribution is inclusive of extra charges (PF Admin & Inspection, etc.) or is it exclusive, i.e., basic x 12% = 780 (limit for employer) + Admin Charges. Please clarify.

Hi dear,

I'm attaching a file that will be helpful for you.

Regards,
Gautam
+919997051789