Dear Friends,
Since the beginning, our company has been paying PF contributions of both the employer and employee at 12% + 12% of the basic salary, even when the salary exceeds 6,500 per month. Starting from 2009, we would like to restrict the contribution to only 6,500 per month. Could you please inform us if any restrictions apply to changing this policy?
Thank you.
From India, Bangalore
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Since the beginning, our company has been paying PF contributions of both the employer and employee at 12% + 12% of the basic salary, even when the salary exceeds 6,500 per month. Starting from 2009, we would like to restrict the contribution to only 6,500 per month. Could you please inform us if any restrictions apply to changing this policy?
Thank you.
From India, Bangalore
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Hi,
No, dear, you cannot change the policy. At the beginning, you would have done that. But once you have started deducting on more than 6500, then it's over. It's one-way traffic. Hope you got my point.
Regards,
Rajeev Dixit
From India, Bangalore
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113No, dear, you cannot change the policy. At the beginning, you would have done that. But once you have started deducting on more than 6500, then it's over. It's one-way traffic. Hope you got my point.
Regards,
Rajeev Dixit
From India, Bangalore
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dear for existing employee you can not change as mentioned by mr rajeev for new joinings you can adopt this policy. tks j s malik
From India, Delhi
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From India, Delhi
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You can not make any changes in the existing one, but you can limit PF contribution upto Rs.6500/- only for new employees. Regards, Sivadasan
From India, Udaipur
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From India, Udaipur
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Hi,
For new employees, you can start by setting a basic salary of around 50% of their total salary. In our company, we provide a minimum basic salary of 4500 and gradually increase this amount along with other components every time there is an increment. Once the basic salary reaches 6500, we adjust the amounts in the remaining components while keeping the Provident Fund (PF) contribution at 12%.
For example, if an individual's basic salary is 12000, the PF will still be calculated based on 6500 only.
Gunjan
From India, New Delhi
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For new employees, you can start by setting a basic salary of around 50% of their total salary. In our company, we provide a minimum basic salary of 4500 and gradually increase this amount along with other components every time there is an increment. Once the basic salary reaches 6500, we adjust the amounts in the remaining components while keeping the Provident Fund (PF) contribution at 12%.
For example, if an individual's basic salary is 12000, the PF will still be calculated based on 6500 only.
Gunjan
From India, New Delhi
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Hi all,
I am a new joiner on this site and also new to the HR department as an executive team member of compliance. I am a student in my first year of BA (Exam in July 2009) at Kolkata University. Can I pursue an MBA alongside my BA, and if so, where? Please provide me with information.
Thank you and regards,
Uday Shankar
Email: [email protected]
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From India, Hyderabad
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I am a new joiner on this site and also new to the HR department as an executive team member of compliance. I am a student in my first year of BA (Exam in July 2009) at Kolkata University. Can I pursue an MBA alongside my BA, and if so, where? Please provide me with information.
Thank you and regards,
Uday Shankar
Email: [email protected]
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From India, Hyderabad
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i had an query is there is any limitation for fixing up the basic in percentage whether it must be 50% or 60% help me dudes
From India, Pondicherry
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From India, Pondicherry
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Vasanthpriya,
As per my information, basic cannot be more than 50% of the total salary. We used to keep it between 45-50%. Basic should not exceed 50%. HRS should be lesser than basic (less by 1-2k at least). Conveyance should not exceed 2500/pm. Also, we don't make many changes in medical allowances as one can get a tax rebate on a maximum of 18000 rs per annum (1500rs/month) as medical expenses. There is no limit on other allowances.
Gunjan
From India, New Delhi
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As per my information, basic cannot be more than 50% of the total salary. We used to keep it between 45-50%. Basic should not exceed 50%. HRS should be lesser than basic (less by 1-2k at least). Conveyance should not exceed 2500/pm. Also, we don't make many changes in medical allowances as one can get a tax rebate on a maximum of 18000 rs per annum (1500rs/month) as medical expenses. There is no limit on other allowances.
Gunjan
From India, New Delhi
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No contribution on salary exceeding statutory limit under EPS 8.11.2013.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx