Hii,
Clarification on PF Changes
Current Scenario:
Currently all employees are covered under PF upto Basic of Rs 6500 per month. There are few employees who have opted for PF on full actual Basic (i.e. more than Rs 6500 per month) within the existing CTC, hence the employee as well as employer contributes 12% on full actual Basic. Our Salary Components include:
Basic : Paid Monthly on Payslip
DA : Paid Monthly on Payslip
HRA : Paid Monthly on Payslip
Conveyance : Paid Monthly on Payslip
Medical Allowance : Paid Monthly on Payslip but bills are collected annually for IT exemption
Personal Pay : Paid Monthly on Payslip
Special Allowance : Paid Monthly on Payslip
Attendance Bonus : Paid Monthly on Payslip subject to terms of settlement
Shift Allowance : Paid Monthly on Payslip subject to terms of settlement
Overtime : Paid Monthly on Payslip
LTA : Paid Annually
Bonus : Paid Annually
With the recent amendments in PF Act, we would like to clarify the following:
1. What all components attracts PF ?
2. If an employee and employer is already contributing on full basic (more than ` 6500/-), Do they need to give any declaration w.r.t new changes?
3. If an employer is currently contributing PF on full basic for e.g. Basic salary is `1,00,000/- per month , How would be the deductions treated ? ( Pension Contribution, PF admin charges, EDLI, EDLI admin Charges )
4. Can an employee and employer whose basic salary is more than `15,000/- opt for PF coverage on Full Basic
a. Existing employee who is covered upto Rs 6500 but Basic is more than Rs 15000
b. First time working and joining at Basic of more than Rs 15000
5. Your circular says paragraph 26A of the EPF scheme restricts employer contribution to 12% of Rs 15000 only even if the employee is voluntarily contributing on full Basic. Please elaborate…. Also what happens to already covered employees with full Basic where employer is also contributing 12% on full Basic.
6. Earlier we could contribute pension fund @ 8.33 % on full basic, what happens to
them now?
7. What happens to international Employees i.e expats working in India ?
Clarification on PF Changes
Current Scenario:
Currently all employees are covered under PF upto Basic of Rs 6500 per month. There are few employees who have opted for PF on full actual Basic (i.e. more than Rs 6500 per month) within the existing CTC, hence the employee as well as employer contributes 12% on full actual Basic. Our Salary Components include:
Basic : Paid Monthly on Payslip
DA : Paid Monthly on Payslip
HRA : Paid Monthly on Payslip
Conveyance : Paid Monthly on Payslip
Medical Allowance : Paid Monthly on Payslip but bills are collected annually for IT exemption
Personal Pay : Paid Monthly on Payslip
Special Allowance : Paid Monthly on Payslip
Attendance Bonus : Paid Monthly on Payslip subject to terms of settlement
Shift Allowance : Paid Monthly on Payslip subject to terms of settlement
Overtime : Paid Monthly on Payslip
LTA : Paid Annually
Bonus : Paid Annually
With the recent amendments in PF Act, we would like to clarify the following:
1. What all components attracts PF ?
2. If an employee and employer is already contributing on full basic (more than ` 6500/-), Do they need to give any declaration w.r.t new changes?
3. If an employer is currently contributing PF on full basic for e.g. Basic salary is `1,00,000/- per month , How would be the deductions treated ? ( Pension Contribution, PF admin charges, EDLI, EDLI admin Charges )
4. Can an employee and employer whose basic salary is more than `15,000/- opt for PF coverage on Full Basic
a. Existing employee who is covered upto Rs 6500 but Basic is more than Rs 15000
b. First time working and joining at Basic of more than Rs 15000
5. Your circular says paragraph 26A of the EPF scheme restricts employer contribution to 12% of Rs 15000 only even if the employee is voluntarily contributing on full Basic. Please elaborate…. Also what happens to already covered employees with full Basic where employer is also contributing 12% on full Basic.
6. Earlier we could contribute pension fund @ 8.33 % on full basic, what happens to
them now?
7. What happens to international Employees i.e expats working in India ?