Hi Seniors,
An employee is earning a basic salary of Rs. 20,000, and the company is deducting 12% of basic, i.e., Rs. 2,400.
Regarding employer contribution, they are ready to pay 12% of PF on Rs. 15,000, i.e., Rs. 1,800 only.
Kindly confirm whether the employer has to pay PF on the actual basic or Rs. 15,000, which is lesser than the actual basic.
Thanks & Regards
From India, Bangalore
Acknowledge(0)
Amend(0)
An employee is earning a basic salary of Rs. 20,000, and the company is deducting 12% of basic, i.e., Rs. 2,400.
Regarding employer contribution, they are ready to pay 12% of PF on Rs. 15,000, i.e., Rs. 1,800 only.
Kindly confirm whether the employer has to pay PF on the actual basic or Rs. 15,000, which is lesser than the actual basic.
Thanks & Regards
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Friend,
After the recent amendments in the PF, it became mandatory for the employers to deduct Rs. 1800/- only from the basic salary of Rs. 15000/-. There is no need to deduct from Rs. 20,000/-; however, if the employer is interested in contributing more, they can deduct from Rs. 20,000/-.
Previously, the ceiling limit was Rs. 780/- on Rs. 6500/- as basic. Now, the ceiling limit has increased to Rs. 1800/- on Rs. 15000/- as basic.
Thanks.
From India, Madras
Acknowledge(0)Amend(0)
4After the recent amendments in the PF, it became mandatory for the employers to deduct Rs. 1800/- only from the basic salary of Rs. 15000/-. There is no need to deduct from Rs. 20,000/-; however, if the employer is interested in contributing more, they can deduct from Rs. 20,000/-.
Previously, the ceiling limit was Rs. 780/- on Rs. 6500/- as basic. Now, the ceiling limit has increased to Rs. 1800/- on Rs. 15000/- as basic.
Thanks.
From India, Madras
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.
Employer-PF-res trict to wages of Rs 6500.pdf