Hi All, My company deducts Rs. 780/- as PF for employees who are earning more than Rs. 6500/- as well. Is this a correct practice? Do you have any documentation that supports this?
The ceiling limit of salary for EPF is Rs. 6,500, i.e., the statutory obligation is only up to the ceiling limit. Beyond the ceiling, it is optional. This is the case for those already registered with PF. Regarding a new employee whose salary is above the ceiling limit, the employer is not obliged (statutorily) to remit PF.
How to Calculate the Provident Fund in Different Conditions
To calculate the provident fund for different accounts such as 1, 2, 10, 21, and 22, you need to determine the specific percentage assigned to each account. Is it necessary to deduct the PF from every employee? This depends on the company's policies and the legal requirements in the respective jurisdiction. It is crucial to follow the guidelines set forth by the relevant authorities to ensure compliance and fairness in PF deductions.
My company is deducting $780 per month as PF. Please confirm if, as per the law, the company should also contribute $780 to my PF account. How can I get the details?
Actually, in PF deduction, the amount that is deducted from the employee and the amount contributed by the company should be the same. But how many companies are doing this?
Regards
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