I'm working professionally with a company where my basic salary is Rs. 20,000, but my employer deducts my Provident Fund based on Rs. 15,000. In my opinion, my contribution should be:
= 20,000 * 12% = Rs. 2,400 (Employee Contribution)
However, on my salary slip, my contribution is calculated as:
= 15,000 * 12% = Rs. 1,800 (Employee Contribution)
My employer deducts the employer's contribution based on Rs. 15,000. I would like to know which calculation is correct—mine or my employer's. If there is any notification regarding this, please share.
From India, Delhi
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= 20,000 * 12% = Rs. 2,400 (Employee Contribution)
However, on my salary slip, my contribution is calculated as:
= 15,000 * 12% = Rs. 1,800 (Employee Contribution)
My employer deducts the employer's contribution based on Rs. 15,000. I would like to know which calculation is correct—mine or my employer's. If there is any notification regarding this, please share.
From India, Delhi
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Hi,
As your basic salary exceeds the ceiling limit of 15000/-, PF shall be contributed based on the ceiling limit only. Therefore, your EPF contribution shall be 12% of 15000/- (15000 X 12% = 1800), which is correct.
Thank you.
From India, Bangalore
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653As your basic salary exceeds the ceiling limit of 15000/-, PF shall be contributed based on the ceiling limit only. Therefore, your EPF contribution shall be 12% of 15000/- (15000 X 12% = 1800), which is correct.
Thank you.
From India, Bangalore
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Dear Jeevarathnam P, In my previous organisation, they had deducted the employee contribution on actual basic. Suppose If X employee basic is Rs. 30000/- Then X contribution is Rs 3600 Please advice.
From India, Delhi
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From India, Delhi
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Your Employer is correct because EPF limit is 15000 decided by EPFO
From India, Sonipat
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From India, Sonipat
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As per PF regulations, employers are mandatory to pay employer contributions only on Rs. 15,000 (this has recently been revised, earlier it was Rs. 6,500). Employers can, at their own discretion, pay more to match the 12% contribution.
However, you can contribute 12% as an employee contribution. I hope this clarifies your query.
From India, Bangalore
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However, you can contribute 12% as an employee contribution. I hope this clarifies your query.
From India, Bangalore
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As per the new amendment, after increasing the PF slab from Rs. 6,500/- to Rs. 15,000/-, the employer has to deduct PF contributions for Rs. 15,000/- for those who are drawing a salary of more than Rs. 15,000/-, and actuals for those who are drawing less than Rs. 15,000/-. This is for your information. If you want to contribute more for the employee's contribution, you can do so, but your employer will only contribute for Rs. 15,000/-.
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Please let me know if you need any further assistance or clarification.
From India, Madras
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Please let me know if you need any further assistance or clarification.
From India, Madras
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@EmployeeIBM,
Please check the copy of your offer letter and appointment letter, which shows the salary breakup. The employer's contribution to PF is shown as Cost To Company. Does it show PF as 12% of Basic or 12% of 15000?
From India, Mumbai
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Please check the copy of your offer letter and appointment letter, which shows the salary breakup. The employer's contribution to PF is shown as Cost To Company. Does it show PF as 12% of Basic or 12% of 15000?
From India, Mumbai
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Hello,
Your employer is right. Legally, he is bound to deduct the employer's share on $15,000. However, if he is not willing, he may choose not to do so. You cannot compel him to deduct on $20,000. Here is a clear-cut explanation of the contribution: [EPF employees provident fund calculation, EPS, EDLI, Admin](http://taxin.in/epf/employees-provident-fund-epf-eps-edli-calculation-ceiling-limit/).
The article provides information on how to calculate EPF contributions.
Thanks
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Your employer is right. Legally, he is bound to deduct the employer's share on $15,000. However, if he is not willing, he may choose not to do so. You cannot compel him to deduct on $20,000. Here is a clear-cut explanation of the contribution: [EPF employees provident fund calculation, EPS, EDLI, Admin](http://taxin.in/epf/employees-provident-fund-epf-eps-edli-calculation-ceiling-limit/).
The article provides information on how to calculate EPF contributions.
Thanks
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dear sir agar salary 18000 per month hai to 12% hamary salary se nahi kata ja sakta agar kata ja sakta hai to koi gazetted notification hai plz Reply.
From India, Bhopal
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From India, Bhopal
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sir principal employer 15000 se jyada par pf dena chahta hai like 16000 to kya hame 16000 par pf lena chahiye
From India, Bhopal
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From India, Bhopal
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Dear Sir/Madam,
In my opinion, my Basic + Special Allowance + Ex-gratia is (12000 + 4000 + 4000) = Rs. 20,000/- as per the judgment of the Supreme Court in Civil Appeal No. 6221 of 2011, considering the maximum limit of Rs. 15,000 * 12% = Rs. 1800 (Employee Contribution).
I would like to know the correct formula in Excel format for this rule.
From India, Gurgaon
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In my opinion, my Basic + Special Allowance + Ex-gratia is (12000 + 4000 + 4000) = Rs. 20,000/- as per the judgment of the Supreme Court in Civil Appeal No. 6221 of 2011, considering the maximum limit of Rs. 15,000 * 12% = Rs. 1800 (Employee Contribution).
I would like to know the correct formula in Excel format for this rule.
From India, Gurgaon
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