Hi, can anybody let me know whether PF deductions is not compulsory for those employees who’s gross salary is above 15000/-? Aarti
From India, Mumbai
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1From India, Mumbai
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What is the relevance of your question? What is the importance of Rs. 15000 salary in EPF? Abbas.P.S
From India, Bangalore
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From India, Bangalore
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I haven't received any mail in a long time. What's going on?
PF Deduction Guidelines
PF will be deducted from the basic salary, not from the gross amount. The basic amount should be ₹6,500/- or less. If employees are receiving more than ₹6,500/- as basic, it will depend on the employer whether they want to provide the PF facility or not.
If you didn't understand, please ask again.
Regards,
Ashish
[Phone Number Removed For Privacy Reasons]
Delhi
From India, New Delhi
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PF Deduction Guidelines
PF will be deducted from the basic salary, not from the gross amount. The basic amount should be ₹6,500/- or less. If employees are receiving more than ₹6,500/- as basic, it will depend on the employer whether they want to provide the PF facility or not.
If you didn't understand, please ask again.
Regards,
Ashish
[Phone Number Removed For Privacy Reasons]
Delhi
From India, New Delhi
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Hey abbas if u knw thn simpky reply fr tht thrad she dnt knw tht is y she is askng we r here to shre our knwkdge n to learn bt dnt telll to any one tht questiin is nt relavant ashish
From India, New Delhi
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From India, New Delhi
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PF Calculation Based on Basic Salary
PF calculation is based on the basic salary and not on the gross salary. Under the PF Act, there is a ceiling of ₹6,500 on the basic salary. For every employee whose salary is more than ₹6,500, they can opt for PF deduction by filling out Form 11. They are also liable to receive employer contributions towards PF as mentioned in their offer letter as PF allowance.
Regards,
Prafull
From India, Mumbai
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PF calculation is based on the basic salary and not on the gross salary. Under the PF Act, there is a ceiling of ₹6,500 on the basic salary. For every employee whose salary is more than ₹6,500, they can opt for PF deduction by filling out Form 11. They are also liable to receive employer contributions towards PF as mentioned in their offer letter as PF allowance.
Regards,
Prafull
From India, Mumbai
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Hi Abhas, I asked this question because, in my company, we don't deduct PF for those employees whose gross salary is more than ₹15,000/-. The basic is 50% of the gross, i.e., ₹7,500/-. I had a confusion, so I asked, and you should not have replied if you felt it was not relevant.
Regards,
Aarti
From India, Mumbai
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Regards,
Aarti
From India, Mumbai
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Hi Thanks for your reply. So the employees who’s basic is more than 6500 are exempted from the PF deduction? or its voluntary on their part? Aarti
From India, Mumbai
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From India, Mumbai
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Yes, employees can voluntarily contribute towards PF equivalent to 12% of their basic salary apart from the usual deduction, which is also 12% of the basic salary. And don't get confused between basic and gross because in PF calculation, we only consider the employee's basic salary.
Regards,
Prafull
From India, Mumbai
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Regards,
Prafull
From India, Mumbai
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Hi prafull i am not confused between basic and gross. i had confusion regarding compulsion of PF deduction. Thank you so much for your guidance. Aarti
From India, Mumbai
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From India, Mumbai
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You need to be clear on the question first. There is no importance of ₹15,000 gross in EPF. PF is based on basic, not gross. The PF wage ceiling is ₹6,500 basic, which means ₹780. After that, the employer can get an exemption from the PF department. ₹15,000 is the wage ceiling of ESI.
Regards,
Khan Feeroze Shams
HRD
[Phone Number Removed For Privacy Reasons]
From India, Delhi
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Regards,
Khan Feeroze Shams
HRD
[Phone Number Removed For Privacy Reasons]
From India, Delhi
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Hi Aarti, in my last company where I was working, PF and ESIC used to be deducted every month, but the company was not registered under PF and ESIC, and they never opened a PF account for any employee. I know this because I was working in the HR department. Whenever any employee asked for the PF account number, my manager always instructed me to say that it was in process. However, it never materialized, and now the company has shut down.
Retrieving Deducted PF and ESIC Amounts
What can we do to retrieve the amount that was deducted from our salaries? Please suggest.
Thank you.
From India, Mumbai
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Retrieving Deducted PF and ESIC Amounts
What can we do to retrieve the amount that was deducted from our salaries? Please suggest.
Thank you.
From India, Mumbai
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Hello, my name is Gaurav, and I want to know how to handle my salary entry in the book at ₹12,000/- per month. My employer has no problem deducting PF on the full amount. Please tell me how to deduct PF on ₹12,000/- and how to deposit it.
Regards,
Gaurav
From India, Mumbai
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Regards,
Gaurav
From India, Mumbai
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PF Deduction Criteria
1) The employer's staff strength should be above 20.
2) For such companies, PF deduction is compulsory.
3) PF is deducted on basic + DA.
4) The employer's liability is limited to only 12 percent of ₹6,500.
5) Even if the basic + DA is above ₹6,500, employee PF can be deducted at the total amount. They can opt for deduction up to 20 percent of their basic + DA, even if the total amount is above ₹6,500.
Your assumption that employees whose basic + DA is more than ₹6,500 are exempted from PF deduction is not correct.
Regards,
T S A Padmanabhan
From India, Delhi
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1) The employer's staff strength should be above 20.
2) For such companies, PF deduction is compulsory.
3) PF is deducted on basic + DA.
4) The employer's liability is limited to only 12 percent of ₹6,500.
5) Even if the basic + DA is above ₹6,500, employee PF can be deducted at the total amount. They can opt for deduction up to 20 percent of their basic + DA, even if the total amount is above ₹6,500.
Your assumption that employees whose basic + DA is more than ₹6,500 are exempted from PF deduction is not correct.
Regards,
T S A Padmanabhan
From India, Delhi
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The PF ceiling is ₹6,500, but if you deduct PF from the first day of the job on ₹6,500, then it can be continued. However, if you deduct PF on a salary of ₹15,000, then you have to continue to deduct PF on ₹15,000. For the pension scheme, you may split the salary of ₹6,500 as the pensionable salary and contribute the rest to PF.
Regards,
Brijesh
From India, Mumbai
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Regards,
Brijesh
From India, Mumbai
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Provident Fund Contribution Guidelines
In line with the topic, please note the following rules while calculating the Provident Fund contributions:
- Basic + D.A / VDA / Special Allowance: If it exceeds Rs. 6,500/-, it depends on the management whether to pay the higher employer's contribution. However, it is binding on the employer to pay the employer's contribution up to or within the limit.
If we consider that Mr. X is your employee and is drawing a Basic Salary of Rs. 10,000/- per month:
- In the case of capping the salary for calculation at Rs. 6,500/-, the employee's contribution is 12%, and the employer's contribution is also 12%, except for Admin Charges.
- The employee's contribution of 12% will directly go to the Employee Provident Fund. Among the employer's 12% contribution, 3.67% will go to the Provident Fund, and 8.33% will go to the Employee Pension Scheme.
If the employers are willing to contribute based on actuals without considering the cap, then:
- Basic + D.A is Rs. 10,000/-
- The employee's contribution of Rs. 1,200/- at 12% on Basic + D.A will go to the Provident Fund. The Employer's Contribution of Rs. 945.9 will go to the Provident Fund, while Rs. 541 will go to EPS because the Employee Pension Scheme has a maximum contribution limit of Rs. 541, and the remaining balance will go to the Employee Provident Fund.
If you have any further queries, please feel free to ask. Together as a team, we can do it.
Regards,
Nilesh Kumar Harge
From India, Pune
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In line with the topic, please note the following rules while calculating the Provident Fund contributions:
- Basic + D.A / VDA / Special Allowance: If it exceeds Rs. 6,500/-, it depends on the management whether to pay the higher employer's contribution. However, it is binding on the employer to pay the employer's contribution up to or within the limit.
If we consider that Mr. X is your employee and is drawing a Basic Salary of Rs. 10,000/- per month:
- In the case of capping the salary for calculation at Rs. 6,500/-, the employee's contribution is 12%, and the employer's contribution is also 12%, except for Admin Charges.
- The employee's contribution of 12% will directly go to the Employee Provident Fund. Among the employer's 12% contribution, 3.67% will go to the Provident Fund, and 8.33% will go to the Employee Pension Scheme.
If the employers are willing to contribute based on actuals without considering the cap, then:
- Basic + D.A is Rs. 10,000/-
- The employee's contribution of Rs. 1,200/- at 12% on Basic + D.A will go to the Provident Fund. The Employer's Contribution of Rs. 945.9 will go to the Provident Fund, while Rs. 541 will go to EPS because the Employee Pension Scheme has a maximum contribution limit of Rs. 541, and the remaining balance will go to the Employee Provident Fund.
If you have any further queries, please feel free to ask. Together as a team, we can do it.
Regards,
Nilesh Kumar Harge
From India, Pune
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Dear Aarti,
In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of the Act (other than the establishments declared as sick), 12% of the basic pay, DA, cash value of food concession, and retaining allowance, if any, is subject to a maximum of Rs. 6500/- per month.
It's binding on the employer that they have to contribute the PF for basic Rs. 6500 irrespective of the higher basic than Rs. 6500. PF contribution on excess basic may or may not be contributed to the PF account based on the employer's policy in this regard.
I hope this will help you to have an idea about the scheme. Even then, you can visit the EPF India website for further information or email me.
With regards,
Abhijit Shete.
From India, Hyderabad
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In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of the Act (other than the establishments declared as sick), 12% of the basic pay, DA, cash value of food concession, and retaining allowance, if any, is subject to a maximum of Rs. 6500/- per month.
It's binding on the employer that they have to contribute the PF for basic Rs. 6500 irrespective of the higher basic than Rs. 6500. PF contribution on excess basic may or may not be contributed to the PF account based on the employer's policy in this regard.
I hope this will help you to have an idea about the scheme. Even then, you can visit the EPF India website for further information or email me.
With regards,
Abhijit Shete.
From India, Hyderabad
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Please tell me if anybody is eligible for a deduction of PF on ₹15,000, and the employer has no issue with agreeing to the deduction of PF on ₹15,000. Please inform me how I should proceed with the deduction of PF on ₹15,000 and the process for depositing it. Additionally, please let me know what should be included in a letter from the employer to the PF department.
Sample Letter Request
Could you please provide me with a sample letter related to the PF department?
From India, Mumbai
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Sample Letter Request
Could you please provide me with a sample letter related to the PF department?
From India, Mumbai
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If I'm not wrong, PF is to be deducted for those employees even if the basic salary exceeds ₹6,500 by virtue of increments (i.e., those EPF members whose salary exceeded the statutory maximum level will continue to contribute to EPF (both employee and employer), which can be restricted to the limit of ₹6,500).
But for the new employees whose basic salary exceeds ₹6,500, it is not mandatory.
Regards,
Leela
From India, Coimbatore
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But for the new employees whose basic salary exceeds ₹6,500, it is not mandatory.
Regards,
Leela
From India, Coimbatore
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The 1.1% is towards admin charges for EPF. The 0.5% is towards the contribution for Employees' Deposit Linked Insurance (EDLI). The 0.01% is towards admin charges for EDLI. The above are calculated on the total salary bill (basic). Hope you are clear.
Regards,
Leela
From India, Coimbatore
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Regards,
Leela
From India, Coimbatore
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Firstly, the PF deduction is taken on the basic salary, and the maximum basic is ₹6,500. PF is a benefit provided by the organization to an employee.
Secondly, the person interested in deducting should have a basic salary above ₹6,500. Also, explain the importance of PF in today's life, how it is useful for the individual and their family members. Even then, if the individual is not interested, you can stop the PF deduction.
From India, Chennai
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Secondly, the person interested in deducting should have a basic salary above ₹6,500. Also, explain the importance of PF in today's life, how it is useful for the individual and their family members. Even then, if the individual is not interested, you can stop the PF deduction.
From India, Chennai
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Under the PF Act, the employer's contribution is for the EPF pension scheme and the Provident Fund scheme. Therefore, there is no restriction on the employer's PF contribution for your provident fund. The employer must contribute based on your basic pay, but there is no requirement to pay the full contribution for the pension scheme. Employer pension contributions are only calculated on basic pay of ₹6500 or less. If your salary is more than ₹6500, the employer's contribution may be limited to ₹6500. However, the employer must still pay for the provident fund contribution.
You should know that the employee's provident fund contribution is 12% of the basic pay, and the employer's contribution is also 12% (3.67% for PF contribution and 8.33% for pension contribution). The employer's contribution is not deducted from the employee's salary. Therefore, Aarthi, you have the right to ask them to open your PF account.
Regards, Mani
From India
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You should know that the employee's provident fund contribution is 12% of the basic pay, and the employer's contribution is also 12% (3.67% for PF contribution and 8.33% for pension contribution). The employer's contribution is not deducted from the employee's salary. Therefore, Aarthi, you have the right to ask them to open your PF account.
Regards, Mani
From India
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PF Deduction on Basic Salary
PF will be deducted from the basic salary, not on the gross amount. The basic amount should be ₹6500/- or less. If employees are receiving more than ₹6500/- as their basic salary, then it will depend on the employer whether they want to provide the PF facility or not.
From India, New Delhi
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PF will be deducted from the basic salary, not on the gross amount. The basic amount should be ₹6500/- or less. If employees are receiving more than ₹6500/- as their basic salary, then it will depend on the employer whether they want to provide the PF facility or not.
From India, New Delhi
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PF Calculation Based on Basic Salary
PF calculation is based on only the Basic Salary and not on the Gross. Under the PF Act, we have a ceiling of Rs. 6500 on the basic salary. For every employee whose salary is more than Rs. 6500, they have the option/choice to avail the facility of PF deduction by filling Form 11. Therefore, it depends on the employee's basic salary.
From India, Gurgaon
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PF calculation is based on only the Basic Salary and not on the Gross. Under the PF Act, we have a ceiling of Rs. 6500 on the basic salary. For every employee whose salary is more than Rs. 6500, they have the option/choice to avail the facility of PF deduction by filling Form 11. Therefore, it depends on the employee's basic salary.
From India, Gurgaon
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PF Deduction Guidelines
Please be aware that PF deduction has to be made for employees drawing up to ₹6,500 as salary/wages. (Please refer to attachments for your guidance on what constitutes wages.)
Once an employee crosses ₹6,500, it is at the discretion of the employee and employer whether or not to deduct PF subscriptions. There is no compulsion on either side. However, many employers choose to continue deducting subscriptions from the employee and employer's contributions even beyond ₹6,500 voluntarily, as a gesture, and there is no statutory liability.
There are companies that permit subscriptions from employees to their PF accounts even exceeding the permissible limits voluntarily and also allow them to either increase or decrease their subscriptions on an ad-hoc basis once or twice a year.
These extra subscriptions/contributions generally occur in employers who have set up their own PF Trust to manage the PF as 'Exempted.'
Regards,
Kumar S. BG.
From India, Bangalore
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Please be aware that PF deduction has to be made for employees drawing up to ₹6,500 as salary/wages. (Please refer to attachments for your guidance on what constitutes wages.)
Once an employee crosses ₹6,500, it is at the discretion of the employee and employer whether or not to deduct PF subscriptions. There is no compulsion on either side. However, many employers choose to continue deducting subscriptions from the employee and employer's contributions even beyond ₹6,500 voluntarily, as a gesture, and there is no statutory liability.
There are companies that permit subscriptions from employees to their PF accounts even exceeding the permissible limits voluntarily and also allow them to either increase or decrease their subscriptions on an ad-hoc basis once or twice a year.
These extra subscriptions/contributions generally occur in employers who have set up their own PF Trust to manage the PF as 'Exempted.'
Regards,
Kumar S. BG.
From India, Bangalore
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PF calculation is based on Basic Salary and not on Gross. ESI calculation is based on the Gross salary. Under the PF Act, we have a ceiling of ₹6,500 on basic salary. For every employee whose salary is more than ₹6,500, they can opt for PF deduction by filling form 11.
From India, Chandigarh
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From India, Chandigarh
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Dear Hitesh, Pl.refer to the attachment which is self explanatory. kumar.s. bg.
From India, Bangalore
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From India, Bangalore
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PF Contribution Guidelines and Compliance Issues
The PF contribution is 12% of the basic salary from both the employee and employer. For the calculation, the maximum limit of the basic salary is Rs 6500/-. This means that even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on the Rs 6500/-, which amounts to Rs 780. However, if an employee so desires, they may voluntarily contribute more than 12%. Apart from this, an employer also has to pay some administration charges (approximately 13.61%).
This rule is applicable to establishments employing 20 or more persons and engaged in any of the 180 industries/classes of businesses specified. Co-operative Societies, employing 50 or more persons and working without the aid of power, also fall under this regulation. Some sectors are exempted if they have their own fund to pay upon the retirement of the employee, which exempts them from the Act.
However, there are firms registered for PF in other states that have been deceiving the Ministry of Labour, GoI, for a long time, escaping without remitting the contributions. The PF authority turns a blind eye to this, causing the employees to suffer upon retirement or retrenchment due to non-remittance. Eventually, the authorities resort to sending arrest warrants (though making them bailable). Therefore, it is crucial to obtain the PF Number and ensure remittance from the relevant PF Office immediately after deduction. Some one-man private limited companies exploit this situation.
Additionally, some firms manipulate by showing a very low basic salary to reduce the employer's contribution, which the PF Authority neglects until "a stitch in time becomes nine or more."
From India, Kochi
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The PF contribution is 12% of the basic salary from both the employee and employer. For the calculation, the maximum limit of the basic salary is Rs 6500/-. This means that even if the employee's basic salary is above Rs 6500/-, the employer is liable to contribute only on the Rs 6500/-, which amounts to Rs 780. However, if an employee so desires, they may voluntarily contribute more than 12%. Apart from this, an employer also has to pay some administration charges (approximately 13.61%).
This rule is applicable to establishments employing 20 or more persons and engaged in any of the 180 industries/classes of businesses specified. Co-operative Societies, employing 50 or more persons and working without the aid of power, also fall under this regulation. Some sectors are exempted if they have their own fund to pay upon the retirement of the employee, which exempts them from the Act.
However, there are firms registered for PF in other states that have been deceiving the Ministry of Labour, GoI, for a long time, escaping without remitting the contributions. The PF authority turns a blind eye to this, causing the employees to suffer upon retirement or retrenchment due to non-remittance. Eventually, the authorities resort to sending arrest warrants (though making them bailable). Therefore, it is crucial to obtain the PF Number and ensure remittance from the relevant PF Office immediately after deduction. Some one-man private limited companies exploit this situation.
Additionally, some firms manipulate by showing a very low basic salary to reduce the employer's contribution, which the PF Authority neglects until "a stitch in time becomes nine or more."
From India, Kochi
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Dear Franklin and others,
I am sorry to say this. There are innumerable establishments that evade PF for their employees. There is no escape for government departments, companies, and private firms; all are cheats and robbers of poor employees. I have worked in government (state and central), PSUs, private firms, and companies. This lawlessness is rampant everywhere. For the sake of employment, poor people keep silent. Many PSUs engage thousands through contractors, terminate them after some time to avoid all these benefits, and reengage them through some other fictitious contractors or names. These actions happen in connivance with corrupt PF/ESI officials. In this regard, private firms are somewhat better compared to government firms.
The pathetic situation is that many employers recover PF subscriptions from their employees but fail to remit them to the PFO. In many firms, employees leaving the establishment are not able to obtain their PF settlement because the establishments didn't remit the contributions to the PFO.
Franklin, please note: The PF administration/inspection charges are either payable by the PF Trusts or by the employer to the PF Commissioner, and the same is not 13.61% as you mentioned. Please note these points:
Employer Coverage
- Establishments employing 20 or more persons and engaged in any of the 180 industries or classes of businesses specified.
- Co-operative societies employing 50 or more persons and working without the aid of power.
- Establishments not coverable statutorily can come under the coverage of the Act voluntarily.
- An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
- Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of a business number.
Financial Obligations
Contributions:
- Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession, and retaining allowances if any) in the case of 175 establishments.
- Rate of contribution shall be 10% in the case of the following:
- Brick, beedi, jute, guar gum factories, coir industry other than the spinning sector.
- Establishments declared as sick undertakings by BIFR.
- A matching contribution is to be collected from the emoluments of the employees.
- Out of 12% (or 10% as the case may be) of the employer's share of contribution, 8.33% is to be remitted towards the pension fund.
- Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS'1976.
Administrative Charges:
- An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards the EDLI Scheme 1976.
- No separate administrative charges for the pension scheme.
Inspection Charges:
- In respect of exempted establishments under the P.F. Scheme, the employer is liable to pay only inspection charges at the rate of 0.18% of emoluments.
- In the case of establishments exempted from the EDLI Scheme, the employer is required to pay only inspection charges at the rate of 0.005% of emoluments.
Interest Liability:
- For belated remittances of contributions, administrative/inspection charges interest at the rate of 12% on such remittances for the period of delay is to be remitted.
I hope this will be of help to you all.
For further information, browse this link: EPFO <link updated to site home>
With regards,
kumar.s.
From India, Bangalore
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I am sorry to say this. There are innumerable establishments that evade PF for their employees. There is no escape for government departments, companies, and private firms; all are cheats and robbers of poor employees. I have worked in government (state and central), PSUs, private firms, and companies. This lawlessness is rampant everywhere. For the sake of employment, poor people keep silent. Many PSUs engage thousands through contractors, terminate them after some time to avoid all these benefits, and reengage them through some other fictitious contractors or names. These actions happen in connivance with corrupt PF/ESI officials. In this regard, private firms are somewhat better compared to government firms.
The pathetic situation is that many employers recover PF subscriptions from their employees but fail to remit them to the PFO. In many firms, employees leaving the establishment are not able to obtain their PF settlement because the establishments didn't remit the contributions to the PFO.
Franklin, please note: The PF administration/inspection charges are either payable by the PF Trusts or by the employer to the PF Commissioner, and the same is not 13.61% as you mentioned. Please note these points:
Employer Coverage
- Establishments employing 20 or more persons and engaged in any of the 180 industries or classes of businesses specified.
- Co-operative societies employing 50 or more persons and working without the aid of power.
- Establishments not coverable statutorily can come under the coverage of the Act voluntarily.
- An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
- Since the Act applies on its own force to the establishments, the employers are required to file the particulars in the specified format for registration and allotment of a business number.
Financial Obligations
Contributions:
- Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowance, cash value of food concession, and retaining allowances if any) in the case of 175 establishments.
- Rate of contribution shall be 10% in the case of the following:
- Brick, beedi, jute, guar gum factories, coir industry other than the spinning sector.
- Establishments declared as sick undertakings by BIFR.
- A matching contribution is to be collected from the emoluments of the employees.
- Out of 12% (or 10% as the case may be) of the employer's share of contribution, 8.33% is to be remitted towards the pension fund.
- Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS'1976.
Administrative Charges:
- An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards the EDLI Scheme 1976.
- No separate administrative charges for the pension scheme.
Inspection Charges:
- In respect of exempted establishments under the P.F. Scheme, the employer is liable to pay only inspection charges at the rate of 0.18% of emoluments.
- In the case of establishments exempted from the EDLI Scheme, the employer is required to pay only inspection charges at the rate of 0.005% of emoluments.
Interest Liability:
- For belated remittances of contributions, administrative/inspection charges interest at the rate of 12% on such remittances for the period of delay is to be remitted.
I hope this will be of help to you all.
For further information, browse this link: EPFO <link updated to site home>
With regards,
kumar.s.
From India, Bangalore
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As per the PF Act, it restricts the PF deduction for employees whose Basic + DA salary is ₹6,500. At the time of joining, an employee whose salary exceeds ₹6,500 can become a member of PF with mutual agreement with the employer. However, the contribution towards EPS will be 8.33% of ₹6,500, which is ₹541; the remaining amount will go to the PF.
From India, Mumbai
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From India, Mumbai
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Please note:
1) For every employee whose basic salary is up to ₹6,500, they need to be covered under deduction.
2) Any employee who has had their PF effect in salary shall have their PF deduction until they leave your company. Even if their basic salary exceeds (due to an increment) the range of ₹6,500, you need to give them the effect of ₹6,500 as its base (maximum range).
3) For a new joiner who wants their PF deduction voluntarily, if the basic salary exceeds ₹6,500, then the effect should be given for ₹6,500 only.
Hope your query is resolved to some extent. Please do guide/correct if I am wrong somewhere.
Regards,
Suman
From India, Bhuj
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1) For every employee whose basic salary is up to ₹6,500, they need to be covered under deduction.
2) Any employee who has had their PF effect in salary shall have their PF deduction until they leave your company. Even if their basic salary exceeds (due to an increment) the range of ₹6,500, you need to give them the effect of ₹6,500 as its base (maximum range).
3) For a new joiner who wants their PF deduction voluntarily, if the basic salary exceeds ₹6,500, then the effect should be given for ₹6,500 only.
Hope your query is resolved to some extent. Please do guide/correct if I am wrong somewhere.
Regards,
Suman
From India, Bhuj
Acknowledge(0)Amend(0)
Provident Fund Queries and Benefits
I have noticed numerous queries being repeatedly asked about PF. Some of these queries are addressed once again in the attachment for your ready reference. You can also find the information at the following link: http://taxguru.in/general-info/frequ...dent-fund.html. Additionally, there are some important benefits from PF that have been collected from various contributors.
Regards,
Kumar S.
From India, Bangalore
Acknowledge(0)Amend(0)
I have noticed numerous queries being repeatedly asked about PF. Some of these queries are addressed once again in the attachment for your ready reference. You can also find the information at the following link: http://taxguru.in/general-info/frequ...dent-fund.html. Additionally, there are some important benefits from PF that have been collected from various contributors.
Regards,
Kumar S.
From India, Bangalore
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Clarification On PF Deduction For Indian Employees (International Workers) Returning From Foreig.pdf