Dear All, What is the liability of employer on PF. Can employer contribute its share of PF of 6500/- or at actual basis, do we have any rule in pf law. Please reply its urgent Regards Vishal Setia
From India, Faridabad
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2From India, Faridabad
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Dear Vishal Calculate PF as 12% of Basic & DA. In case 12% of Basic & DA is more than Rs 780 (i.e. 12% of Rs 6,500), you can choose to restrict PF to Rs 780 per month. Regards Madhan
From India, Delhi
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From India, Delhi
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As per PF rules, both the employer and employee should each contribute 12% of the basic salary towards the PF share. The salary could be restricted to Rs. 6,500. However, this should be made applicable to all employees.
From India, Mumbai
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From India, Mumbai
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Dear Vishal,
First of all, you must be aware of the fact that the component for the deduction of EPF accumulation is done on Basic salary + dearness allowance + food conc. (if any). Secondly, the basic salary should not be less than the minimum wages defined by the state from time to time. Thirdly, membership for EPF/EPS accumulation is mandatory for the salary range up to Rs. 6500/- (which includes basic + DA + food conc.).
Furthermore, once you become a member of EPF/EPS, you cannot be excluded during your continuity in service until your basic salary exceeds Rs. 6500/-. Rs. 6500/- is the ceiling for EPS & EDLI, not for EPF. If the employer wishes to pay the contribution on the actual basic, then it is well and good, but they must pay up to Rs. 6500/-. Additionally, all the administrative charges must be paid by the employer.
Thanks & Regards,
Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons]
From India, Ghaziabad
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First of all, you must be aware of the fact that the component for the deduction of EPF accumulation is done on Basic salary + dearness allowance + food conc. (if any). Secondly, the basic salary should not be less than the minimum wages defined by the state from time to time. Thirdly, membership for EPF/EPS accumulation is mandatory for the salary range up to Rs. 6500/- (which includes basic + DA + food conc.).
Furthermore, once you become a member of EPF/EPS, you cannot be excluded during your continuity in service until your basic salary exceeds Rs. 6500/-. Rs. 6500/- is the ceiling for EPS & EDLI, not for EPF. If the employer wishes to pay the contribution on the actual basic, then it is well and good, but they must pay up to Rs. 6500/-. Additionally, all the administrative charges must be paid by the employer.
Thanks & Regards,
Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons]
From India, Ghaziabad
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf