PF Issue [Thread 395973]

Sir i am new user of your site, i am not understand where deduct of pf please clear my issue
my issue-
1) when applicable of PF please sent all Point
2) when is one employee salary is 10000 to 25000 rs. then PF will deducting Or not.
3)when is one employee salary is 3000 To 6500 after that pf deducting or not
4) How to deduct Pf of our Employee.
5) where employee then deducted PF
Please sir reply answer of my issue
Thanks for advance
With Best Regard
Kripal
Asst. Accountant
Contact no. 7503650506

Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to establishment where pf is applicable provided 20 or more persons are employed.
Employees drawing basic salary upto Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund.
they can opt for Voluntary Provident Fund or vpf. max is 100% of basic.
It is mandatory for employees completing 10 years of service to opt for Pension.
Employee completing 10 years of service can not withdraw entire PF (employer and employees contribution). They are allowed to withdraw their contribution 12% and Employers contribution of 3.67% to PF. Balance amount i.e. Employer contribution amounting to 8.33% will be paid by way of pension

Dear Kripal,

1) when applicable of PF please sent all Point

- If the employee strength of your organization, including branch offices, exceeds 20, then your organization is to be registered under PF Scheme.

2) when is one employee salary is 10000 to 25000 rs. then PF will deducting Or not.

- If the above salary is Basic + DA, then the employee can be exempted from PF or his PF can be deducted on Rs.6500 (PF limit) or his PF can be deducted on whole Basic + DA.

3)when is one employee salary is 3000 To 6500 after that pf deducting or not

- If employee Basic + DA is as above then PF is compulsorily deducted on whole Basic + DA. Here, you need to check if the Basic + DA is as per the minimum wages of your state.

4) How to deduct Pf of our Employee.

- PF is deducted on Basic + DA.

E.g : Basic + DA = 6500

Employee PF contribution : 12% of 6500 = Rs. 780 ( This will be deducted from his salary)

Employer PF Contribution : 12% of 6500 + 1.61% = 13.61%

12% is further divided as

- 8.33% of 6500 towards Pension Scheme and 3.67% towards PF

-0.5% towards EDLI (Employee Deposit Link Insurance) Scheme

- Administrative charges of 1.10% towards EPF and 0.01% towards EDLIS.

Total : 13.61%

5) where employee then deducted PF

- This query is not clear. Please explain.

Hope this answers your doubts. Do revert for any further queries.