Doubt Regarding PF Deduction

Roshni333
Good Evening Everybody,
Request you all to kindly clear this doubt of mine regarding PF deduction.As we all know that for the calculation purpose the upper limit of Basic and DA is 6500/- but I have seen that on paper or in the appointment letters the calculation is 12% basic and basic can be any amount.Also the inhand salary is as per deductions of appoitment letter.So what can I understand from this.Is there something hidden or I missed out on something.I could not get the solution of this query in the previous discussions.Please educate me on this.
varghesemathew
What ever is the basic or DA or both the contribution of employees and employer can be statutorily limited to 12% of it.But employees can voluntarily contribute 12% of basic +DA (basic alone if DA is not paid) in excess of Rs 6500/-Employer is at his liberty to restrict his contribution on 6500/- or on actual wages.
Varghese Mathew
hrkpati
Dear Friends,
If Gross pay is more than Rs, 6500/- PF will not attract. Where the restriction question? You need not to pay even on Rs. 6500/- . To attract the employees , you can go for PF. I mean to say, if Rs. 6501/- paid as salary, that employee will not be attracted by PF.
Plese Correct me.
Hrkpati
K. Balakrishnan.
Dear Roshini
Once you are enrolled as member in the PF of your organization PF on Basic + DA will be deducted @12%. Similar amount (i.e.e 12%) will also be added as employer contribution to PF. However, out of this 12% of employer contribution maximum Rs.541/- (i.e. 8.33% of Rs.6500/-) will go the employee pension fund and the remaining amount will be added to the employees PF contribution. Eventhough there is a base line of Rs.6500/- is fixed by the PF authorities for deduction of PF, once you are member of the scheme you cannot come out of this after crossing the Rs.6500/- base. Hope you are clear now.
Balakrishnan
varghesemathew
Hrkpati
There is no law that once the salary is above Rs 6500/-pm PF need not be deducted.Such a person with salary above 6500/- shall continue as PF member if he was already a EPF member and has not withdrawn his PF accumulation.
Varghese Mathew
Roshni333
Thank you people for your reply.But there is one more doubt in my mind.Since I worked for a production firm mostly were blue collar people so I want to know that do we need to inform the employees that we are deducting 12% of their basic (even if it is more than 6500) as per law or it can be company's decision since they are not aware of this 6500 ceiling eventhough we have been deducting 12% only on any basic.
Thanks,
mahassiva5
Dear Seniors,
Is it possible to pay voluntary contribution to the pf account by the employee.
from his salary out of basic Rs. 6500/-. say Rs.780+1020 =1800. But the
employer contribution is restrict not more than Rs.780/- Please explain...
azim_1607@yahoo.com
Dear Seniors,
Need help in the matter of withdrawal of Pension Amount,
It is required minimum 6 month service for withdrawal.
My query is 6 month has to be counted from date of filing Form 2 Nomination & submitted to PF Department OR from the contribution deducted from Salary
& remitted to PF A/c maintain with SBI.
Regards,
Azim Charania
varghesemathew
No rule that pension should be applied after six months.
Varghese Mathew
azim_1607@yahoo.com
Varghese Mathew Sir,
My query is regarding FORM 10 C Pension Amount, In many cases of our establishment employee PF authority return the Form 10C with remarks less that 6 month service.
In that context I have ask the query :-
My query is 6 month has to be counted from date of filing Form 2 Nomination & submitted to PF Department OR from the contribution deducted from Salary & remitted to PF A/c maintain with SBI.
Kindly revert
Regards,
Azim Charania
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