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 the 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. (say about 13.61%)
It is applicable to establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power. Some sectors are exempted who have their own Fund to pay on retirement of the employee, which are exempted from the Act.
HOWEVER there are also some firms who are registered for PF in other states and making the Ministry of Labour, GoI, as clean fools for long and escapes without remitting and the PF authority is also closing their eyes, with which the employees suffer on retirement/retrenchment, due to non-remittance. Later they adopt the option to send arrest warrant (but making it bailable). So get the PF Number and remittance from the relevant PF Office immediately after deduction. Some one man private limited companies the clever-employer.
Besides some firms show a very low basic salary so as to cut down the employer contribution, which are all not taking care by the PF Authority nor forgetting till the "stitch in time becomes to nine or more."
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It is applicable to establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
Co-operative Societies, employing 50 or more persons & working without the aid of power. Some sectors are exempted who have their own Fund to pay on retirement of the employee, which are exempted from the Act.
HOWEVER there are also some firms who are registered for PF in other states and making the Ministry of Labour, GoI, as clean fools for long and escapes without remitting and the PF authority is also closing their eyes, with which the employees suffer on retirement/retrenchment, due to non-remittance. Later they adopt the option to send arrest warrant (but making it bailable). So get the PF Number and remittance from the relevant PF Office immediately after deduction. Some one man private limited companies the clever-employer.
Besides some firms show a very low basic salary so as to cut down the employer contribution, which are all not taking care by the PF Authority nor forgetting till the "stitch in time becomes to nine or more."
.