Hello All I am having problem regarding PF deduction. Can we deduct PF from Gross Salary excluding HRA?
From India, New Delhi
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From India, New Delhi
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PF deduct only on BASIC+DA. It will not deduct on gross salary only ESIC deduct on gross salary.
From India, Gurgaon
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2From India, Gurgaon
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Dear sir Deduction of effort basic+d.a. Epf deduct one time after that if the basic+d.a up of the ceilling amount. We can not stop Deduction of epf
From India, Pune
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From India, Pune
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Dear Aakash, with regard to PF on gross, the Madras High Court has given a judgment in one of the cases that excludes the HRA; all the allowances shall be a part of wages for the chargeability of PF. However, a review petition has been filed in the Supreme Court. Hence, this issue is awaiting a Supreme Court judgment on whether PF contributions shall be made inclusive of allowances excluding the HRA or not. Until then, follow the existing wages definition as per Section 2(b) of the said act. Should PF be charged on Basic plus DA?
Thanks & Regards,
V. SHAKYA
HR & Labour, Corporate Laws Advisor
From India, Agra
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Thanks & Regards,
V. SHAKYA
HR & Labour, Corporate Laws Advisor
From India, Agra
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Dear Sir,
The latest contribution of EPF sharing ratios is as follows:
- A/c No 1 = 12% EE
- A/c No 1 = 3.67% ER
- A/C No 10 = 8.33%
- A/c No 2 = 0.65% effective from 01.04.2017
- A/c No 21 = 0.5%
- A/c No 22 = 0.01%
Additional charges:
- Minimum Admin Charge = 500/- for A/c No 02
- Min. Inspection Charge = 200/- for A/c No 22
- Non-Contribution minimum admin & Inspection Charge = 75/- & 25/-
Thank you.
From India, Pune
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The latest contribution of EPF sharing ratios is as follows:
- A/c No 1 = 12% EE
- A/c No 1 = 3.67% ER
- A/C No 10 = 8.33%
- A/c No 2 = 0.65% effective from 01.04.2017
- A/c No 21 = 0.5%
- A/c No 22 = 0.01%
Additional charges:
- Minimum Admin Charge = 500/- for A/c No 02
- Min. Inspection Charge = 200/- for A/c No 22
- Non-Contribution minimum admin & Inspection Charge = 75/- & 25/-
Thank you.
From India, Pune
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You can do so. However, what will happen is the gross salary will be considered as the basic salary for the calculation of gratuity. This is because you intend to deduct PF on the gross salary, whereas it should be deducted on basic & DA, if any.
From India, Mumbai
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From India, Mumbai
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Dear Mr Suresh Kaushik, you have mentioned that "A/c No 22=0.01%" Please note that w.e.f 01/04/2017 "No Sum is payable towards EDLI Admin Charges i.e A/C # 22
From India, New Delhi
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From India, New Delhi
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Hello all,
Greetings of the day! I would like some help from you all. I am currently working in a company where approximately 100 employees work. The company has requested me to provide the best scheme for PF and ESI contributions. Could anyone assist me with this scheme? Specifically, how can I help the company reduce expenses on PF contributions? In other words, how can I have fewer employees included in PF contributions?
Thank you.
From India, New Delhi
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Greetings of the day! I would like some help from you all. I am currently working in a company where approximately 100 employees work. The company has requested me to provide the best scheme for PF and ESI contributions. Could anyone assist me with this scheme? Specifically, how can I help the company reduce expenses on PF contributions? In other words, how can I have fewer employees included in PF contributions?
Thank you.
From India, New Delhi
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put a lock or ceiling limit do not deduct the pf of the employees having basic + da more than 15k.
From India, Pune
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From India, Pune
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Also PF can be deducted from the gross salary if the salary has no breakup and is termed as a consolidated salary during probation. After confirmation with a proper breakup according to the pay grade, it could be deducted from Basic + DA.
From India, Pune
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From India, Pune
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Dear Mr. Aniket Pathak,
Your statement that "do not deduct the PF of the employees having basic + DA more than 15k" is not tenable legally. An employee who is covered under EPF will continue to be covered under EPF irrespective of his EPF wages going above the EPF wage ceiling of Rs. 15,000/- However, the employer can restrict EPF contribution to the ceiling limit i.e., Rs. 15,000/-. Please go through EPF Act and EPS, 1995 for the sake of understanding.
From India, New Delhi
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Your statement that "do not deduct the PF of the employees having basic + DA more than 15k" is not tenable legally. An employee who is covered under EPF will continue to be covered under EPF irrespective of his EPF wages going above the EPF wage ceiling of Rs. 15,000/- However, the employer can restrict EPF contribution to the ceiling limit i.e., Rs. 15,000/-. Please go through EPF Act and EPS, 1995 for the sake of understanding.
From India, New Delhi
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Even for new employees joining the establishment whose entry-level EPF wages are more than Rs 15,000, you cannot automatically exclude them from EPF coverage. Action should only be taken after obtaining EPF Form No. 11 (New) and based on the information furnished therein. Please note that EPF is a beneficial legislation, and to the extent possible, employers should encourage employees to become EPF members. The rate of interest is higher than the industry standard, and consistently, you receive interest.
From India, New Delhi
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From India, New Delhi
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You can deduct PF on Gross salary subject to a limit of Rs. 15K as per the EPF Act. If the Basic salary is greater than 15K, Gross salary cannot be considered for PF computation. If Basic+DA salary is greater than 15K, you can deduct PF on it.
From India, Ahmedabad
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From India, Ahmedabad
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Gross Salary(1).xls
Epf circular on full salary 230317 Pension on full salary as per SC order 23.3.2017.pdf