Calculation Of PF Contributions Post New PF Wage Ceiling

Hi
we have a doubt. For an executive with basic + DA = 26000 we were deducting employee contribution=780 and employer contribution=780 until 31-08-2014.
With revised ruling effective from1-9-2014 can we cap the employee contribution=1800 and employer contribution=1800?
Incidentally the employee thinks that we should not change trhe contributions from 780 to 1800 even. Is this correct?
Thanks
Leela

Dear Leela,
With reference to your query,
For the employee, whose Basic+DA is 26,000 -as you said, Both Employee & Employer Contribution can be limited to 1800 ( i.e 12% on 15000) or
Some companies will deduct employee's contribution 12% on Basic irrespective of Wage ceiling limit, so Employee Contribution = 12% on 26000 =3120/-
But Employer contribution remains the same 1800/- .
I hope I clarified your doubt. Please let me know if you need any clarification.
Thanks & Regards
T.Prathap,
HR Executive, Human Resource Department,
R L Jalappa Narayana Heart Centre,
[Login to view]
Mobile:8884291530.

Example:
What is the PF when an employee is earning basic salary of Rs. 10,000, Rs. 1,500 (conveyance allowance) and Rs. 3,000 (medical allowance)?
Salary = Basic Salary + Dearness Allowance (DA)
Salary = 10,000 + 1500 + 3000
Salary = 14,500 (> Rs. 6,500)
So,
PF = 12% * 14,500
PF = Rs. 1,740
In this case employee is only liable to pay 12% * Rs. 6,500 = Rs. 780. The remaining amount which comes out to be Rs. 960 is employee's choice to pay or not to pay.
Example taken from : PF Calculator - https://www.easycalculation.com/mortgage/epf-calculator.php

Dear all,
could you give revaised PF admin charges with A/c detail?
Regards
Madesh M
Cavinkare Pvt Ltd

Dear Friends,
Would you please explain, whether to pay PF for the employees, whose salary below Rs.15000/- (Basic+DA) as per the new PF Wage ceiling.
Thanking you,
Bhupathi

Dear Bhupa,
It is mandatory to cover all the employees whose Basic+DA is less than 15000/-. More than 15000/- it is optional for the employee at the time of Joining. But already the employee is covered under PF and because of his Basic+DA is more than 15000/-, we cant stop him covering under PF.
Hope your doubt clarified.
T.Prathap
Senior Executive-HR
9491771437

Dear All,
Now the Admin. Charges for EPF has been reduces from 1.10% to 0.85%. So, the employer's contribution is 13.36% instead of 13.61%
FYI