New Law Of PF

Hi Friends,
I would like to know whether the new rule for PF is applied i.e 12.5% of the the gross monthly salary. Earlier it used to be 12.5% of basic.Also is there any minimum limit of employees required to start a PF account for the employees in the company.

Hi Ajit
PF is 12% on the Basic & not 12.5%. As of now there is no amendment 12% on the gross pay. But PF is calculated on Basic, DA, and other allowances too except HRA

Hi Jeeva,
Thank you for the information, It was bit confusing as there was a update by December 2012 new PF rule is coming that is 12% of the gross.
Anyway thank you for the clarification.Also could anybody help me to know what is the minimum limit of employees required to start a PF account for the employees in the company.

Dear Friends
Please go through the https://www.citehr.com/443481-pf-cir...-abeyance.html thread, which will be useful for you. Further the discussions in https://www.citehr.com/442860-pay-mo...-salary-3.html thread will give you clear picture.

Hi Ajit
PF Contribution Rate for Employee & Employeer is 12 % only
Except HRA - Basic/DA/other Allowance should be taken for 12%
if above said elements above Rs.6500 ie if some getting basic/da/other allowance more than Rs.6500/- We can seal the PF Wage as Rs.6500 - (6500 * 12% Rs.780/-) Rs. 780 as PF Deduction,
Once Basic,DA, other allownace is less than Rs.6500 we should not seal and contribution rate should be 12%
There is no limit for start PF. From 1st day joining PF to should be take for account.
Regards
Jerold.

Hi Jerold,
Need small clarification. Can a employee opt out of PF, giving in writing to HR once the Basic+HRA+ Other Allowance put together exceeds 6500/-
SP

HI Nayagam
No. Once the employee is covered under EPF even if there is any hike is wages which exceeds 6500/- contributions are mandatory. In this case if both are willing contributions shall be 12% on basic, HRA & other allowances or else it shall be restricted to 6500/-

Union Labour and Employment Minister Mallikarjun Kharge on 13th
December, 2012 said that the Circular November 30th, 2012 pertaining
to Guidelines for Quasi-judicial proceedings under section 7A of the
EPF&MP Act, 1952 issued by the EPFO on the inclusion of certain
allowances etc. for calculating Provident Fund contribution is to be
kept in abeyance. So the status quo will continue.
For SSHRIEE CONSULTTANCY

Hi Yashtaran,
Employer can restrict the ceiling basic to Rs.6500... No other way to go in PF...
If the Employee is willing to deduct whole also they can, but the organisation need not do this..