Dear seniors, please clarify the PF ceiling amount for an employee who joined the organization on the 4th and whose basic salary is more than Rs 6500 for that given month. My payroll software is dividing this Rs 6500 by the number of days in the month, and the "PF employee contribution" is being calculated only for the days the employee was present.
Regards,
Sam
From India, Bangalore
Acknowledge(0)
Amend(0)
Regards,
Sam
From India, Bangalore
Acknowledge(0)Amend(0)
If you do not contribute or provide coverage to an employee whose salary at the time of joining is more than Rs 6500, and the date of joining falls somewhere in between the month so that the salary for the first month will be less than Rs 6500, resulting in the automatic deduction of EPF, you will need to either manually calculate their salary for the first month or make adjustments in the system to avoid any PF deductions from the employee.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
4529Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Thank you very much, Madhu Sir. I am sorry for the mistake in my question; it should be employers' contribution instead of employee contribution. I just wanted to know whether the ceiling amount of $6,500 to calculate the employers' PF contribution remains constant or will it vary proportionately depending on the employees' DA + BASIC for the given month.
Regards,
Sam
From India, Bangalore
Acknowledge(0)Amend(0)
Regards,
Sam
From India, Bangalore
Acknowledge(0)Amend(0)
Rs.6500 is the ceiling amount which cant vary, but the employer’s contribution may vary according to the basic+da of employee wereas its % contribution always remains same i.e. 12%.....
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
It is not mandatory that employers' contribution should be restricted to a salary of Rs. 6500. If the employer is willing to contribute based on a higher salary, the ceiling of Rs. 6500 will not apply.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Dear Sam,
I understand the tool is calculating the breakup. Please check if the leave balance is updated appropriately, the weekly offs and holidays are set up correctly. Maybe the tool, by default, is considering non-working days as LOP - just a thought.
Regards,
Nithy
From India, Bangalore
Acknowledge(0)Amend(0)
I understand the tool is calculating the breakup. Please check if the leave balance is updated appropriately, the weekly offs and holidays are set up correctly. Maybe the tool, by default, is considering non-working days as LOP - just a thought.
Regards,
Nithy
From India, Bangalore
Acknowledge(0)Amend(0)
What I understand from your query is that you joined the organization on the 4th of the month. If this is accurate, you will be eligible for pay and allowances from the 4th of the month for that specific month in which you joined the organization.
As for contributions towards PF, you can make your contributions to the extent of 100% towards PF.
Regards.
From India, Mumbai
Acknowledge(0)Amend(0)
As for contributions towards PF, you can make your contributions to the extent of 100% towards PF.
Regards.
From India, Mumbai
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.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf