Hi Seniors, Please suggest to me, If any employee gross salary 80000/- so his basic salary 40000/-. So can I deduct the EPF on 15000/- basic salary or 40000/- basic plz suggest.
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EPF is optional for individuals drawing a salary of more than Rs.15,000 per month.
From India, Jaipur
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PF Deduction Guidelines
PF is deducted at 12% of wages, subject to a maximum wage limit of ₹15,000. Therefore, you need to deduct PF on ₹15,000 only.
If the employee wishes to deduct 12% of the full basic and DA, they must submit a request for voluntary deductions. The company is not required to pay an additional amount beyond the statutory limit.
Let me also make it clear. PF is not exempt for those drawing a salary beyond ₹15,000. They are exempt only if they join your organization at a salary above ₹15,000, do not have any PF account at the time of joining, and opt for being exempt.
From India, Mumbai
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PF is deducted at 12% of wages, subject to a maximum wage limit of ₹15,000. Therefore, you need to deduct PF on ₹15,000 only.
If the employee wishes to deduct 12% of the full basic and DA, they must submit a request for voluntary deductions. The company is not required to pay an additional amount beyond the statutory limit.
Let me also make it clear. PF is not exempt for those drawing a salary beyond ₹15,000. They are exempt only if they join your organization at a salary above ₹15,000, do not have any PF account at the time of joining, and opt for being exempt.
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PF Deduction on Employee Salary
You can deduct PF either on the whole amount paid to the employee, i.e., Rs 80,000, or on the part of it described as basic pay, i.e., Rs 40,000, or on Rs 15,000. If you deduct and contribute PF on Rs 15,000 in respect of an employee who is paid more than Rs 15,000, the PF will not raise any question because PF cannot be demanded on an amount exceeding Rs 15,000, though the employer can very well contribute PF on any amount without any limit. Therefore, the decision to deduct and contribute PF in respect of an employee whose salary exceeds Rs 15,000 is purely a managerial decision.
From India, Kannur
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You can deduct PF either on the whole amount paid to the employee, i.e., Rs 80,000, or on the part of it described as basic pay, i.e., Rs 40,000, or on Rs 15,000. If you deduct and contribute PF on Rs 15,000 in respect of an employee who is paid more than Rs 15,000, the PF will not raise any question because PF cannot be demanded on an amount exceeding Rs 15,000, though the employer can very well contribute PF on any amount without any limit. Therefore, the decision to deduct and contribute PF in respect of an employee whose salary exceeds Rs 15,000 is purely a managerial decision.
From India, Kannur
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Sir An employee getting gross salary Rs 17000/- and his basic is 10000/- on which amount PF should be deducted in basic or PF ceiling limit ? gskumar
From India, Jaipur
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From India, Jaipur
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(Fact Checked)-The PF should be deducted on the actual basic salary, which is Rs 10,000 in this case, not on the PF ceiling limit. (1 Acknowledge point)
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Employee-Friendly PF Deduction
If your establishment is an employee-friendly organization, you may deduct PF from Rs. 17,000, i.e., the gross salary. On the other hand, if you follow the law, since it is to be followed as part of your responsibility, then deduct PF from Rs. 15,000.
From India, Kannur
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If your establishment is an employee-friendly organization, you may deduct PF from Rs. 17,000, i.e., the gross salary. On the other hand, if you follow the law, since it is to be followed as part of your responsibility, then deduct PF from Rs. 15,000.
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if we appoint a employee of above 50yrs first time in EPF UAN, Whether he is applicable for the Family pension contribution .
From India, Guruvayur
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From India, Guruvayur
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Yes, you should contribute to Pension Fund also. If the age is above 58, then, ofcourse, you need not contribute to pension fund but should contribute your entire 12% to PF.
From India, Kannur
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If the employer contribution is $1,800 for staff with a salary above $15,000, then what is the employee's contribution? For example, if the basic salary is $21,000 and the employer's share is $1,800, what is the employee's share? Should I calculate it as $21,000 x 12% = $2,520 or $1,800? Please clarify.
From India, Chennai
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From India, Chennai
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(Fact Checked)-The correct employee EPF contribution calculation for a basic salary of 21,000 is 2,520 (12% of basic). This aligns with EPF rules. (1 Acknowledge point)
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Hi Mohan, Both PF contributions should be equal, i.e., Rs.1800 + Rs.1800/-. However, if an employee wants to save more in PF, they can opt for VPF, which will be an additional contribution apart from the employee's share of 12%.
From India, Madras
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From India, Madras
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(Fact Checked)-The employee's PF contribution should be on the basic salary of Rs. 40,000. The total contribution would be Rs. 4,800 (12% of basic). VPF is an additional option. (1 Acknowledge point)
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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
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(Fact Checked)-EPF is mandatory for employees with a basic salary up to Rs. 15,000. For a basic salary of Rs. 40,000, EPF deduction should be calculated on the full basic amount. (1 Acknowledge point)