Hloo All, plzz help me in knowing that why pf which is 12% of basic is divided in two forms (one is 8.33% and second is 3.67%).... where it goes ???? plzzz explain it.....
From India, Chandigarh
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From India, Chandigarh
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Hi rithika Employee contribution -pf-12% Employer contribution -pf-3.67% Employees family pension fund is 8.33% Regards M.Dhanasekar
From India, Chennai
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5From India, Chennai
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Apart from the above admin charges -1.10% of basic 0.5% of basic 0.01 of basic Altogether pf is 13.61% for employers
From India, Chennai
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From India, Chennai
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thnksss Mr. DHANA.M .....WILL u plzzz elaborate the 2nd one u have explained.............I need more clarification....
From India, Chandigarh
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From India, Chandigarh
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Hi See,for employers total pf contribution with family pension fund is 13.61% Inclusive of all the above charges
From India, Chennai
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From India, Chennai
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Now PF admin charges were changed from 1.10% to 0.85%. So, Altogether PF is 13.36% for employers
From India, Hyderabad
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From India, Hyderabad
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Understanding Provident Fund (PF) Contributions
When you deduct PF from an employee's salary, it is at a rate of 12%. However, when you deposit the PF, there are certain other fields mentioned in the challan. They are shown as A/c No. 01, 10, 2, 21 & 22.
1. Employee Contribution (A/c No. 1) is at 12% of Basic and DA.
2. Employer Contribution is at 12%, further divided into two parts: (a) Pension Fund (A/c No. 10) at 8.33% and (b) EPF (A/c No. 1) at 3.67%. The (b) is deposited under EPF similar to employee contribution.
3. Admin Charges (A/c No. 02) at 1.1% of Basic and DA or Rs. 500/-, whichever is higher.
4. EDLI Charges (A/c No. 21) at 0.50% (Employee Deposit-Linked Insurance).
5. Inspection Charges (A/c No. 22) at 0.01% or Rs. 200/-, whichever is higher.
Please note that if any employee draws a basic salary of more than Rs. 15,000, under A/c No. 10 (Pension Fund), a maximum of Rs. 1,250 can be deposited. The difference amount of the employer contribution will then be shifted to A/c No. 01 (EPF).
For instance, if the Basic is Rs. 20,000, the contributions would be Rs. 2,400 (Employer Contribution- No. 01), Rs. 1,250 (Employer Contribution, A/c-10, being the maximum limit), and Rs. 1,150 (Employer contribution-A/c 01).
However, the other heads will be deposited as per the percentage and minimum limit criteria.
I hope your basics for EPF are now clear.
Best regards
From India, Delhi
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When you deduct PF from an employee's salary, it is at a rate of 12%. However, when you deposit the PF, there are certain other fields mentioned in the challan. They are shown as A/c No. 01, 10, 2, 21 & 22.
1. Employee Contribution (A/c No. 1) is at 12% of Basic and DA.
2. Employer Contribution is at 12%, further divided into two parts: (a) Pension Fund (A/c No. 10) at 8.33% and (b) EPF (A/c No. 1) at 3.67%. The (b) is deposited under EPF similar to employee contribution.
3. Admin Charges (A/c No. 02) at 1.1% of Basic and DA or Rs. 500/-, whichever is higher.
4. EDLI Charges (A/c No. 21) at 0.50% (Employee Deposit-Linked Insurance).
5. Inspection Charges (A/c No. 22) at 0.01% or Rs. 200/-, whichever is higher.
Please note that if any employee draws a basic salary of more than Rs. 15,000, under A/c No. 10 (Pension Fund), a maximum of Rs. 1,250 can be deposited. The difference amount of the employer contribution will then be shifted to A/c No. 01 (EPF).
For instance, if the Basic is Rs. 20,000, the contributions would be Rs. 2,400 (Employer Contribution- No. 01), Rs. 1,250 (Employer Contribution, A/c-10, being the maximum limit), and Rs. 1,150 (Employer contribution-A/c 01).
However, the other heads will be deposited as per the percentage and minimum limit criteria.
I hope your basics for EPF are now clear.
Best regards
From India, Delhi
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Thank you so much for making the concept clear. I have one more question that I posted yesterday but didn't receive any answer. Please answer. Is there a need to deduct PF and ESI for an employee who is on a contract basis and hired directly by the company, not by a contractor? Is it official or mandatory here?
From India, Chandigarh
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From India, Chandigarh
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Provident Fund - Excluded Employee - Definition.pdf
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