Pf Contribution On Arrears Of Increment

Dear sir,
KINDLY CLARIFY THIS.
ONE PERSON DRAWING 5500 IN JULY
AS HE IS ELEGIBLE FOR AN INCREMENT OF 2000 FROM JULY, WHEN CALCULATING HIS PAY with arrears for july, THE DEDUCTION OF PF WILL BE 780- AS THE MAXIMUM. AM I RIGHT?

Hi,
The maximum ceiling of Basic for calculation of PF is Rs 6500. If you are talking of Basic only you are right, it should be Rs 780.
Amit Goyal

Dear amit and other friends,
Thank you for ur reply. Please clarify further whether the following is correct?
Mr.x drawing a basic in July 5500 - pf deducted 660 and paid
In August, his basic is increased to 7500 and an arrears of 2000 paid where his contribution for pf is to be 780 only and not 12%on entire 9500. Am I correct?

dear all,
even i got the similar doubt.
my sales manager was getting 13000/- as basic till may'07 and we re deducting pf 12%. in august we are paying him 15000/- basic and arrearsof baisc from may to july(2000*3). now do we need to calculate pf for this arrear amount i.e 6000/- also.
please clarify my doubt.
regards
sowjanya

Dear Sowjanya and Rama,
First do clear whether you were deducting PF on actual basic 13000 or on ceiling 6500. In case you were deducting PF on actual Basic 13000, you do need to pay PF on the arrears i.e., on Rs 6000. But in case you erwrw deducting PF only on the ceiling 6500, you do not need to pay the PF on arrears.
Amit Goyal

Hi,
It is left to the decision of the company in case they want to give more contribution. i.e. for more than Rs.780/-
P F contribution can be increased once in a year during the Appraisal time.
We do follow the same in our company.
Regards,
Joylyn

Dear All
I agree with all of you that maximum ceiling for Pf (Pension Fund) is Rs. 6500/-. Eg if a person's PF wage is Rs. 7500/- than PF cont. is as below:
PF Employee: 900 (Account No. 1)+359(Employer Part)
PF Employer: (900) Rs 541/- Maximum goes to pension fund (Account no 10)
Requested all of you please correct me if I am wrong.
Regards
Vikas Sharma

Dear All,
I would like to draw your attention towards the rules for deducting max. ceiling of Rs.780/= As far as i know, those companies which are running under a loss or under BIFR, that can only put such type of ceiling, otherwise we have to apply to PF Commissioner, for putiing such type of ceiling. Even PF Commissioner, before giving any permission, get the concent of all the employees of the company.
Please let us know more rules any one knows.
Hemant

HI All,
I'm new to these site,can any one please forward me all the info about the esi and pf contribution and their calculation, with excel format to my mail address as below:
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I would be very glad of all u guys ,plz help me ,as want to know more deep in esi and pf contribution.
Thanks
Elias lobo

It the company policy is to pay the statutory minimum then PF would be 780, Incase your company follows to pay 12% of Basic, it should be calculated on the basic.
If your company follows statutory minimun and basic of the employee is less than 6500 then PF would be 12% of basic. if it is more than 6500 then 780 is nothing but 12% of 6500(Statutory minimum for calculating PF)