Dear sir, Due to no knowledge of ABRY SCHEME (EPFO) we have deducted PF contribution 12% from his monthly wages. So what to do now?
From India,
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From India,
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Dear User,
It appears there has been a mistake in the calculation of the PF contribution for an employee under the ABRY (Atmanirbhar Bharat Rozgar Yojana) scheme. No worries, there are ways to rectify this.
Firstly, it's important to understand that under the ABRY scheme, the Indian government subsidizes the EPF contributions for new employees. This means the 12% contribution that you've been deducting may not have been necessary.
Here are the steps to rectify this:
1. 🔒 Calculate the Over Deduction: First, calculate the total amount that has been over deducted. This would be the amount that has been deducted in excess of what should have been under the ABRY scheme.
2. 🔦 Rectify the Next Month's Deduction: You can adjust the over deducted amount in the subsequent month's PF contribution. If the over deducted amount is significant, you can spread the adjustment over a few months.
3. 🔉 Update the ECR: The Electronic Challan cum Return (ECR) needs to be updated to reflect the changes. You will have to prepare a revised ECR with the correct contributions and submit it to the EPFO.
4. 🆔 Inform Employee: It is important to inform the concerned employee about the mistake and how you plan to rectify it. This is to maintain transparency and trust.
5. 🔒 Update Payroll Records: Lastly, ensure that your payroll records are updated to reflect these changes. This is important for maintaining accurate financial records.
Remember, under the ABRY scheme, the government takes care of the PF contribution for new employees for a certain period. So, it's important to keep track of the eligibility of your employees for this scheme.
Please note that it's always a good idea to consult with a labor law expert or the EPFO helpline for specific scenarios or further queries.
And finally, going forward, ensure that the payroll team has a complete understanding of the various schemes and their implications on PF deductions. This will help avoid such errors in the future.
🤰 For further reference, you can check the official EPFO website and the ABRY scheme details.
Let's learn from our mistakes and ensure they are not repeated in the future.
🤗 Good luck!
From India, Gurugram
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54It appears there has been a mistake in the calculation of the PF contribution for an employee under the ABRY (Atmanirbhar Bharat Rozgar Yojana) scheme. No worries, there are ways to rectify this.
Firstly, it's important to understand that under the ABRY scheme, the Indian government subsidizes the EPF contributions for new employees. This means the 12% contribution that you've been deducting may not have been necessary.
Here are the steps to rectify this:
1. 🔒 Calculate the Over Deduction: First, calculate the total amount that has been over deducted. This would be the amount that has been deducted in excess of what should have been under the ABRY scheme.
2. 🔦 Rectify the Next Month's Deduction: You can adjust the over deducted amount in the subsequent month's PF contribution. If the over deducted amount is significant, you can spread the adjustment over a few months.
3. 🔉 Update the ECR: The Electronic Challan cum Return (ECR) needs to be updated to reflect the changes. You will have to prepare a revised ECR with the correct contributions and submit it to the EPFO.
4. 🆔 Inform Employee: It is important to inform the concerned employee about the mistake and how you plan to rectify it. This is to maintain transparency and trust.
5. 🔒 Update Payroll Records: Lastly, ensure that your payroll records are updated to reflect these changes. This is important for maintaining accurate financial records.
Remember, under the ABRY scheme, the government takes care of the PF contribution for new employees for a certain period. So, it's important to keep track of the eligibility of your employees for this scheme.
Please note that it's always a good idea to consult with a labor law expert or the EPFO helpline for specific scenarios or further queries.
And finally, going forward, ensure that the payroll team has a complete understanding of the various schemes and their implications on PF deductions. This will help avoid such errors in the future.
🤰 For further reference, you can check the official EPFO website and the ABRY scheme details.
Let's learn from our mistakes and ensure they are not repeated in the future.
🤗 Good luck!
From India, Gurugram
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf