Dear All,
I need help from you all regarding some clarifications on Provident Fund:
1) For PF deduction, the ceiling on basic salary limit is Rs. 6,500. If the basic salary of a member employee increases beyond Rs. 6,500 after becoming a member, is it mandatory to continue or can the contribution to PF be stopped?
2) If the basic salary is already more than Rs. 6,500 at the time of hiring, do we still need to contribute to PF as mandatory?
3) Are there any companies that do not contribute because the basic salary is more than Rs. 6,500?
Kindly assist me in resolving my queries.
Thanks & Regards,
Shilpi
From India, New Delhi
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5I need help from you all regarding some clarifications on Provident Fund:
1) For PF deduction, the ceiling on basic salary limit is Rs. 6,500. If the basic salary of a member employee increases beyond Rs. 6,500 after becoming a member, is it mandatory to continue or can the contribution to PF be stopped?
2) If the basic salary is already more than Rs. 6,500 at the time of hiring, do we still need to contribute to PF as mandatory?
3) Are there any companies that do not contribute because the basic salary is more than Rs. 6,500?
Kindly assist me in resolving my queries.
Thanks & Regards,
Shilpi
From India, New Delhi
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Dear Shilpi,
If any employee jumps to cross the limit of PF Ceiling, his PF should be deducted up to the ceiling limit ($6500), but definitely to be deducted as he is already a member of PF and can't cease to be until he leaves the organization.
In case of a new member, it depends on whether he is declaring his past association with other companies on form no. 11 or not. If he was getting his PF deducted there, it will be deducted in the new company, and if not, it may not be deducted. PF inspectors have the power to cross verify these form 11 in case of non-contribution by employees. It is not mandatory in the case of a fresher who is getting a basic salary higher than $6500.
Yes, definitely, there are many companies that are not deducting the PF of said employees.
Hope this serves your purpose.
Regards,
Rahul
From India, Delhi
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If any employee jumps to cross the limit of PF Ceiling, his PF should be deducted up to the ceiling limit ($6500), but definitely to be deducted as he is already a member of PF and can't cease to be until he leaves the organization.
In case of a new member, it depends on whether he is declaring his past association with other companies on form no. 11 or not. If he was getting his PF deducted there, it will be deducted in the new company, and if not, it may not be deducted. PF inspectors have the power to cross verify these form 11 in case of non-contribution by employees. It is not mandatory in the case of a fresher who is getting a basic salary higher than $6500.
Yes, definitely, there are many companies that are not deducting the PF of said employees.
Hope this serves your purpose.
Regards,
Rahul
From India, Delhi
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Dear Ms. SHILPI,
PF MUST BE DEDUCTED in all criteria mentioned by you, within limit or above limit. The company must deduct the P.F. from the salary (basic + d.a.).
If you are deducting PF from an employee whose basic salary is above 6500/-, you will have to fill up form-26(6) with the employee's consent and the company's undertaking.
Vishal - 9825224504
From India, Vadodara
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PF MUST BE DEDUCTED in all criteria mentioned by you, within limit or above limit. The company must deduct the P.F. from the salary (basic + d.a.).
If you are deducting PF from an employee whose basic salary is above 6500/-, you will have to fill up form-26(6) with the employee's consent and the company's undertaking.
Vishal - 9825224504
From India, Vadodara
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Shilpi,
1) If the employee's basic increases beyond Rs. 6500/-, then the employer has to contribute the minimum amount of Rs. 780/-. It is mandatory.
2) On hiring, if the basic exceeds Rs. 6500/-, the PF amount of Rs. 780/- has to be deducted if he is already a member of PF. Else, it is not required.
3) If the employee joins in the consultant mode, then PF does not have to be deducted.
From India, New Delhi
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1) If the employee's basic increases beyond Rs. 6500/-, then the employer has to contribute the minimum amount of Rs. 780/-. It is mandatory.
2) On hiring, if the basic exceeds Rs. 6500/-, the PF amount of Rs. 780/- has to be deducted if he is already a member of PF. Else, it is not required.
3) If the employee joins in the consultant mode, then PF does not have to be deducted.
From India, New Delhi
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Thank you, everyone. Currently, we are contributing 12% of the basic salary towards PF for all employees. However, we are considering discontinuing this practice for junior management, as they are requesting more take-home pay. Based on all the responses received, it appears that we should continue their PF contribution since they are already enrolled members. Can we proceed with a contribution of only 780/-? Kindly confirm.
From India, New Delhi
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From India, New Delhi
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Exactly Shilpi, Since you have already been deducting PF you cannot stop contributing now.
From India, New Delhi
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From India, New Delhi
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So far, where I have worked has been contributing 12% of the basic salary, even if the basic salary exceeds $6500. You can follow the same procedure if you want to. That is purely what you decide on.
From India, New Delhi
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From India, New Delhi
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:-PHi Members, Pl. throw some more on these lines (Shilpi’s query). It will be useful to all. regards, Uniquenaga:icon1::icon1::icon1:
From India, Madras
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From India, Madras
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It has been discussed in detail about the query raised by shilpi.. if u r looking for more information then be specific on what u want details.
From India, New Delhi
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From India, New Delhi
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Dear Shilpi,
It entirely depends upon the company's policy on how much the Principal employer would like to contribute towards the PF contribution. It can be 12% of the maximum limit of Rs. 6,500.00, or it can be without any limitations.
Normally, the company is depositing a flat 12% towards the PF contribution, regardless of the Rs. 6,500.00 limitation nowadays. The reason for this is that most companies have already factored in that amount into the CTC of the employee during salary negotiations.
For example, if the CTC is Rs. 50,000.00 per month and the basic pay is Rs. 20,000.00, then the PF contribution of both the employee and the employer is included in the CTC (which is Rs. 2,400.00 for each at 12% of Rs. 20,000.00). Therefore, an amount of Rs. 4,800.00 is already included in the CTC of Rs. 50,000.00.
From India, Delhi
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It entirely depends upon the company's policy on how much the Principal employer would like to contribute towards the PF contribution. It can be 12% of the maximum limit of Rs. 6,500.00, or it can be without any limitations.
Normally, the company is depositing a flat 12% towards the PF contribution, regardless of the Rs. 6,500.00 limitation nowadays. The reason for this is that most companies have already factored in that amount into the CTC of the employee during salary negotiations.
For example, if the CTC is Rs. 50,000.00 per month and the basic pay is Rs. 20,000.00, then the PF contribution of both the employee and the employer is included in the CTC (which is Rs. 2,400.00 for each at 12% of Rs. 20,000.00). Therefore, an amount of Rs. 4,800.00 is already included in the CTC of Rs. 50,000.00.
From India, Delhi
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Dear Shilpi,
It is mandatory to continue the contribution in PF. If the practice is in place for PF contribution regardless of the ceiling, one such employee cannot be discriminated against. There may be many companies restricting PF contribution to a salary limit of Rs. 6500/-
Regards,
krk rao
From India, Jaipur
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It is mandatory to continue the contribution in PF. If the practice is in place for PF contribution regardless of the ceiling, one such employee cannot be discriminated against. There may be many companies restricting PF contribution to a salary limit of Rs. 6500/-
Regards,
krk rao
From India, Jaipur
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Dear Shilpi, Pf ceiling Rs.6500/- is manditory,for paying/contributing more than ceiling limit is again its depends on employer. Regards Puttaraju.M
From India, Mumbai
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From India, Mumbai
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Dear shilpi, you can do more thing, get resignation from your employees and appoint them afresh at higher basic salary.
From India, Lucknow
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From India, Lucknow
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Geethanjali,
I don't understand what made you say that. Once the employee is an existing PF member, then you have to pay at least the minimum amount of ₹780 towards PF, even if you hire them back with a higher basic salary as you suggested. I can understand that you must be a fresher.
From India, New Delhi
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I don't understand what made you say that. Once the employee is an existing PF member, then you have to pay at least the minimum amount of ₹780 towards PF, even if you hire them back with a higher basic salary as you suggested. I can understand that you must be a fresher.
From India, New Delhi
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Dear Shilpi,
First of all, thanks a lot for posting valuable content. One point I would like to mention is that for any employee for whom you are already contributing more than Rs 780, you cannot reduce it back to Rs 780. Apart from this, visit www.epfindia.com for more details.
Friends, I need further clarification on what Mr. Vishal has mentioned, i.e., about Form 26(6).
Thanks to all others who have replied to this post.
Regards,
Amith R.
From India, Bangalore
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First of all, thanks a lot for posting valuable content. One point I would like to mention is that for any employee for whom you are already contributing more than Rs 780, you cannot reduce it back to Rs 780. Apart from this, visit www.epfindia.com for more details.
Friends, I need further clarification on what Mr. Vishal has mentioned, i.e., about Form 26(6).
Thanks to all others who have replied to this post.
Regards,
Amith R.
From India, Bangalore
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Hello,
PF deductions over Rs. 6500/- are at the discretion of the management. Once a decision is made to pay contributions over and above Rs. 6500, PF must be paid on the wages exceeding Rs. 6500, and cannot be stopped in the meantime. This should apply uniformly to all employees. Additionally, stopping or setting a higher limit in the middle is not feasible.
Thank you.
From India, Hyderabad
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PF deductions over Rs. 6500/- are at the discretion of the management. Once a decision is made to pay contributions over and above Rs. 6500, PF must be paid on the wages exceeding Rs. 6500, and cannot be stopped in the meantime. This should apply uniformly to all employees. Additionally, stopping or setting a higher limit in the middle is not feasible.
Thank you.
From India, Hyderabad
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I want to know, if i have some contractual employees with us, is it necessary for us to give PF??
From India, Gurgaon
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From India, Gurgaon
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If an employee is getting a salary of Rs. 9500 per month and in the month of June, his salary has been increased to Rs. 12500, in that case, ESI should be deducted. However, ESI should be deducted on Rs. 10000 or Rs. 12500.
From India, Ludhiana
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From India, Ludhiana
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Varinder, ESI should be calculated only for 9500/- not for 10000/- or 12500/- till the end of september.
From India, New Delhi
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From India, New Delhi
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Hi Shilpi,
Opting in, Fixed option, or opting out is merely an employee's decision and not the employer's. Hence, when the basic salary increases beyond Rs. 6500/-, it is still up to the employee to decide whether to contribute to PF or not. There are no establishments that have ruled out PF on account of the basic salary being beyond Rs. 6500/-.
Thanks and Regards,
Hema
From India,
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Opting in, Fixed option, or opting out is merely an employee's decision and not the employer's. Hence, when the basic salary increases beyond Rs. 6500/-, it is still up to the employee to decide whether to contribute to PF or not. There are no establishments that have ruled out PF on account of the basic salary being beyond Rs. 6500/-.
Thanks and Regards,
Hema
From India,
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Hi Uniquenaga,
Thank you, Prathima, for your response. There are two different things in PF deductions as per the discussions:
i) 12% of Basic
ii) Rs. 780/-
My doubts are:
i) Is there any rule or relaxation about the Employer contribution being a fixed ceiling of Rs. 780/- for employees whose Basic crosses Rs. 6500/-?
ii) Is there any strict rule that we should deduct 12% from the basic of employees in a new company that is introducing PF and all, or can we restrict that also to Rs. 780/-?
iii) What questions will be encountered when filing the returns with the EPFO office if a company restricts its (Employer) contribution to Rs. 780/- for employees whose Basic crosses Rs. 6500/-? If so, how can we defend and overcome this with the PF officials?
Kindly shed more light on these matters.
Regards,
Uniquenaga:icon1::icon1::icon1:
From India, Madras
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Thank you, Prathima, for your response. There are two different things in PF deductions as per the discussions:
i) 12% of Basic
ii) Rs. 780/-
My doubts are:
i) Is there any rule or relaxation about the Employer contribution being a fixed ceiling of Rs. 780/- for employees whose Basic crosses Rs. 6500/-?
ii) Is there any strict rule that we should deduct 12% from the basic of employees in a new company that is introducing PF and all, or can we restrict that also to Rs. 780/-?
iii) What questions will be encountered when filing the returns with the EPFO office if a company restricts its (Employer) contribution to Rs. 780/- for employees whose Basic crosses Rs. 6500/-? If so, how can we defend and overcome this with the PF officials?
Kindly shed more light on these matters.
Regards,
Uniquenaga:icon1::icon1::icon1:
From India, Madras
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Dear Virender,
I disagree with the statement made by Prathima. In this scenario, the employee's contribution will be based on the enhanced wages (i.e., ₹12,500.00) until the month of September, after which he will be exempted. To support this, I am including Section 50 of the ESI Act, which clarifies any doubts regarding this issue.
50. Wage limit for coverage of employees under the Act
The wage limit for coverage of an employee under sub-clause (b) of clause (9) of section 2 of the Act shall be ₹6,500 a month:
PROVIDED that an employee whose wages (excluding remuneration for overtime work) exceed ₹6,500 a month at any time after and not before the beginning of the contribution period shall continue to be an employee until the end of that period.
"If an employee is receiving a salary of ₹9,500 per month and in June, his salary is increased to ₹12,500, should ESI be deducted on ₹10,000 or ₹12,500?"
Thank you.
From India, Delhi
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I disagree with the statement made by Prathima. In this scenario, the employee's contribution will be based on the enhanced wages (i.e., ₹12,500.00) until the month of September, after which he will be exempted. To support this, I am including Section 50 of the ESI Act, which clarifies any doubts regarding this issue.
50. Wage limit for coverage of employees under the Act
The wage limit for coverage of an employee under sub-clause (b) of clause (9) of section 2 of the Act shall be ₹6,500 a month:
PROVIDED that an employee whose wages (excluding remuneration for overtime work) exceed ₹6,500 a month at any time after and not before the beginning of the contribution period shall continue to be an employee until the end of that period.
"If an employee is receiving a salary of ₹9,500 per month and in June, his salary is increased to ₹12,500, should ESI be deducted on ₹10,000 or ₹12,500?"
Thank you.
From India, Delhi
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Yes, Virendra Rajiv is correct. The ESI will be deducted from the gross amount received by the employee till September's salary. Starting from October's salary, he will be out of ESI coverage, but his coverage will continue for the next six months, and he can still avail the ESI facility.
From India, Bangalore
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From India, Bangalore
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Dear Shilpi,
It is not mandatory to deduct PF from any employee's salary if his/her basic wages are more than Rs. 6500/-. As specified in the PF Act, "PF must be deducted from the salary of any employee drawing basic wages up to 6500/-."
However, if your employer does not want to contribute/deduct PF from employees drawing more than 6500/-, you can obtain a written undertaking from the concerned employee regarding non-contribution to PF. This approach can help avoid any complex situations that may arise from this decision.
From India, New Delhi
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It is not mandatory to deduct PF from any employee's salary if his/her basic wages are more than Rs. 6500/-. As specified in the PF Act, "PF must be deducted from the salary of any employee drawing basic wages up to 6500/-."
However, if your employer does not want to contribute/deduct PF from employees drawing more than 6500/-, you can obtain a written undertaking from the concerned employee regarding non-contribution to PF. This approach can help avoid any complex situations that may arise from this decision.
From India, New Delhi
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Dear Friend,
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Thank you.
From India, Delhi
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Sorry for disturbing you. I am looking for a job, but I have not received any interview call letters yet. Can you help me in searching? I have 9 years of experience in HR and Admin and was an HR Manager in the UAE. Now, I am looking for opportunities in India. Please assist me. My email IDs are skriyaz786@yahoo.co.in and shriyazhrm786@aol.in.
Thank you.
From India, Delhi
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[QUOTE=prathimareddy;511207]
Shilpi,
1) If the employee's basic increases beyond Rs. 6500/-, then the employer has to contribute the minimum amount of Rs. 780/-. It is mandatory.
2) On hiring, if the basic exceeds Rs. 6500/-, the PF amount of Rs. 780/- has to be deducted if he is already a member of PF. Otherwise, it is not required.
3) If the employee joins as a consultant, then PF does not have to be deducted.
Hi Prathima,
In my experience with the PF commissioner, PF officials have the right to request not deducting PF for consultants or any employees. It is better to maintain the ceiling limit and deduct and pay.
Thanks,
Mahesh
From India, Bangalore
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Shilpi,
1) If the employee's basic increases beyond Rs. 6500/-, then the employer has to contribute the minimum amount of Rs. 780/-. It is mandatory.
2) On hiring, if the basic exceeds Rs. 6500/-, the PF amount of Rs. 780/- has to be deducted if he is already a member of PF. Otherwise, it is not required.
3) If the employee joins as a consultant, then PF does not have to be deducted.
Hi Prathima,
In my experience with the PF commissioner, PF officials have the right to request not deducting PF for consultants or any employees. It is better to maintain the ceiling limit and deduct and pay.
Thanks,
Mahesh
From India, Bangalore
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Dear Friends,
Most of the contraventions are okay. For clarification, please see the attached PF CHECKLIST (earlier posted by me). There is no maximum limit; the ceiling is Rs. 6500/- (Basic + DA). If it crosses this limit, he/she may be called an 'Exempted Employee'. However, it is mandatory as a social security measure for employees, so every RPF authority may request the deduction of PF at Rs. 6500/- from every exempted employee. It is advisable to make such deductions that are exempted from Income Tax purview.
Regards, PBS KUMAR
From India, Kakinada
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Most of the contraventions are okay. For clarification, please see the attached PF CHECKLIST (earlier posted by me). There is no maximum limit; the ceiling is Rs. 6500/- (Basic + DA). If it crosses this limit, he/she may be called an 'Exempted Employee'. However, it is mandatory as a social security measure for employees, so every RPF authority may request the deduction of PF at Rs. 6500/- from every exempted employee. It is advisable to make such deductions that are exempted from Income Tax purview.
Regards, PBS KUMAR
From India, Kakinada
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Dear all PF and ESI Software available with various forms, returns, challans,for a small sum. place order at kaizenstaffsol.com
From India, Hyderabad
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From India, Hyderabad
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Hello All, If the contribution towards PF is more than Rs.780/month is it ok to reduce the amount to Rs.780/month Regards, Prasad
From India, Bangalore
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From India, Bangalore
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Dear Shilpi,
1) The law states that PF is mandatory for employees with a basic salary limit of less than or equal to Rs. 6500/-, but this should not be misinterpreted to mean that employees with a salary greater than Rs. 6500/- are not required to have PF coverage. However, employees can choose either to contribute up to Rs. 6500/- or opt out.
2) If the basic salary upon hiring is already more than Rs. 6500/-, is it necessary to contribute to PF as a mandatory requirement? It is not mandatory but rather an option to be decided by the employee.
3) Are there any companies that do not contribute because the basic salary is more than Rs. 6500/-? Yes, there are. However, the best suggestion is not to offer the option to opt out, but rather to limit the contribution to Rs. 6500/-.
Thanks.
Regards,
Hema
From India,
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1) The law states that PF is mandatory for employees with a basic salary limit of less than or equal to Rs. 6500/-, but this should not be misinterpreted to mean that employees with a salary greater than Rs. 6500/- are not required to have PF coverage. However, employees can choose either to contribute up to Rs. 6500/- or opt out.
2) If the basic salary upon hiring is already more than Rs. 6500/-, is it necessary to contribute to PF as a mandatory requirement? It is not mandatory but rather an option to be decided by the employee.
3) Are there any companies that do not contribute because the basic salary is more than Rs. 6500/-? Yes, there are. However, the best suggestion is not to offer the option to opt out, but rather to limit the contribution to Rs. 6500/-.
Thanks.
Regards,
Hema
From India,
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Guys, you have confused me completely. Please tell me which option is correct:
1. PF ceiling of 6500 means that PF will be calculated on a maximum of 6500, which means Rs 780 is the maximum deduction as per the law, to which the employer is obliged. Any amount above this is at the discretion of the company.
OR
2. PF ceiling of 6500 means that the maximum deduction (12%) on the basic salary (regardless of the amount) is Rs 6500, which represents the employee's share in Account Number 1. Even if the deduction of 12% of the basic salary exceeds 6500, the limit remains.
Please advise.
Robin Dhyani
From India, Delhi
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1. PF ceiling of 6500 means that PF will be calculated on a maximum of 6500, which means Rs 780 is the maximum deduction as per the law, to which the employer is obliged. Any amount above this is at the discretion of the company.
OR
2. PF ceiling of 6500 means that the maximum deduction (12%) on the basic salary (regardless of the amount) is Rs 6500, which represents the employee's share in Account Number 1. Even if the deduction of 12% of the basic salary exceeds 6500, the limit remains.
Please advise.
Robin Dhyani
From India, Delhi
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Is it true that the employer contributes an amount equal to the employees' PF contribution, or is the employer's contribution limited to a maximum of 12% of 6500/-? Although I have been receiving a basic salary well above 6500/-, the employer used to deduct PF only 780/- for everyone. Please clarify.
From United Kingdom
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From United Kingdom
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Dear Friends
The much-awaited minimum monthly pension of Rs.1,000 and a higher wage ceiling of Rs.15,000 for social security schemes run by retirement Fund manager Employees’ Provident Fund Organisation (EPFO) will be implemented from September 1.
The government’s decision to fix pension entitlement of Rs.1,000 under the Employees’ Pension Scheme 1995 (EPFS-95) will immediately benefit 28 lakh pensioners who get less than this amount at present. The move to enhance the minimum wage ceiling for becoming a subscriber of the EPFO to Rs.15,000 a month is expected to bring 50 lakh additional formal sector workers under the ambit of the body.
“The government has notified enhancement of wage ceiling to Rs.15,000 per month, fixed minimum monthly pension at Rs.1,000 under EPS-95 and enhanced the maximum sum assured under the Employees’ Deposit Linked Insurance (EDLI) Scheme to Rs.3 lakh,” EPFO’s Central Provident Fund Commission K. K. Jalan told PTI.
Mr. Jalan said: “Now the maximum sum assured under the EDLI works out to be Rs.3.60 lakh, including 20 per cent ad hoc benefit over the prescribed amount under the notification.” This means that in case an EPFO subscriber dies, his family will be entitled to a maximum sum assured of Rs.3.60 lakh instead of existing Rs.1.56 lakh.
Mr. Jalan said the notification regarding minimum pension, wage ceiling and EDLI would be effected from September 1. Thus all pensioners getting less than Rs 1,000 per month would get at least this much pension from October.
The following may be the impact after the amendment:
1. The employees who have already opted out from PF coverage ( whose basic is above Rs.6500) would be covered under the scheme in case their Basic Wages is higher than Rs.6500 p.m. and upto Rs.15000/- per month.
2. Employees who are exiting PF Members and over a period their basic wages have gone up upto Rs.15000 per month and even above (once member always a member), currently their PF contribution is deducted on a maximum wage limit of Rs, 6500/-, but from now onwards their contribution would be deducted on the actual basic wages upto maximum limit Rs.15000/-p.m.
3. Similarly, the companies who are currently extending PF benefit only on Rs.6500/- irrespective of their wages , may have to increase the PF wages to Rs.15000/- and need to pay the employer contribution of 13.61% on Rs.15000/-
4. The pension amount limit also will increase from Rs.541/- to Rs.1000/-.
5. The employees who current basis wages is less
From India, Pune
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The much-awaited minimum monthly pension of Rs.1,000 and a higher wage ceiling of Rs.15,000 for social security schemes run by retirement Fund manager Employees’ Provident Fund Organisation (EPFO) will be implemented from September 1.
The government’s decision to fix pension entitlement of Rs.1,000 under the Employees’ Pension Scheme 1995 (EPFS-95) will immediately benefit 28 lakh pensioners who get less than this amount at present. The move to enhance the minimum wage ceiling for becoming a subscriber of the EPFO to Rs.15,000 a month is expected to bring 50 lakh additional formal sector workers under the ambit of the body.
“The government has notified enhancement of wage ceiling to Rs.15,000 per month, fixed minimum monthly pension at Rs.1,000 under EPS-95 and enhanced the maximum sum assured under the Employees’ Deposit Linked Insurance (EDLI) Scheme to Rs.3 lakh,” EPFO’s Central Provident Fund Commission K. K. Jalan told PTI.
Mr. Jalan said: “Now the maximum sum assured under the EDLI works out to be Rs.3.60 lakh, including 20 per cent ad hoc benefit over the prescribed amount under the notification.” This means that in case an EPFO subscriber dies, his family will be entitled to a maximum sum assured of Rs.3.60 lakh instead of existing Rs.1.56 lakh.
Mr. Jalan said the notification regarding minimum pension, wage ceiling and EDLI would be effected from September 1. Thus all pensioners getting less than Rs 1,000 per month would get at least this much pension from October.
The following may be the impact after the amendment:
1. The employees who have already opted out from PF coverage ( whose basic is above Rs.6500) would be covered under the scheme in case their Basic Wages is higher than Rs.6500 p.m. and upto Rs.15000/- per month.
2. Employees who are exiting PF Members and over a period their basic wages have gone up upto Rs.15000 per month and even above (once member always a member), currently their PF contribution is deducted on a maximum wage limit of Rs, 6500/-, but from now onwards their contribution would be deducted on the actual basic wages upto maximum limit Rs.15000/-p.m.
3. Similarly, the companies who are currently extending PF benefit only on Rs.6500/- irrespective of their wages , may have to increase the PF wages to Rs.15000/- and need to pay the employer contribution of 13.61% on Rs.15000/-
4. The pension amount limit also will increase from Rs.541/- to Rs.1000/-.
5. The employees who current basis wages is less
From India, Pune
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Dear Seniors,
In accordance with the wage ceiling increase from 6500 to 15000, I request guidance on the deduction of PF (12%) on a 5000/- basic salary.
Employee Share 12% Rs.600/- + Employer EPF share 3.67% Rs.184/- = Total Rs.784/-
Employer Share 8.33% Rs.417/- contribution deposited in EPS account.
If the wage ceiling is now increased, will the notification affect the above calculation or not?
From India, Mumbai
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In accordance with the wage ceiling increase from 6500 to 15000, I request guidance on the deduction of PF (12%) on a 5000/- basic salary.
Employee Share 12% Rs.600/- + Employer EPF share 3.67% Rs.184/- = Total Rs.784/-
Employer Share 8.33% Rs.417/- contribution deposited in EPS account.
If the wage ceiling is now increased, will the notification affect the above calculation or not?
From India, Mumbai
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Hi!!! Dear All, Please help me about how i can communicate with my staff about changes in their salary structure due to change in PF Ceiling. please give me any format of letter. Thanks.
From India, Pune
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From India, Pune
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Please tell me if the employee earn , more than Rs.15,000(For ex:Rs.20,000 Basic) For this how much amount has to contribute by Employer & Employee
From India, Bangalore
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From India, Bangalore
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Ms. SHILPI,
For PF Deduction, the ceiling Basic Salary limit is Rs. 6,500/-. If the basic salary of a member employee increases beyond Rs. 6,500 after becoming a member, is it mandatory to continue the contribution in PF? The ceiling Basic Salary limit is Rs. 15,000/- with the new amendment.
You can restrict the PF deduction as per statutory norms and deduct on Rs. 6,500 (though the present limit is Rs. 15,000 per month). If a member continues their membership, you should do the same, but you cannot stop the contribution without the employee's consent.
You do not need to fill out Form-26(6). If employees wish to contribute more than 12% per month, then you must fill out Form 26(6) mandatorily with the employee's consent and the company's undertaking.
Mayank Panchal Head HR Real Namkeen Nadiad
From India, Anand
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For PF Deduction, the ceiling Basic Salary limit is Rs. 6,500/-. If the basic salary of a member employee increases beyond Rs. 6,500 after becoming a member, is it mandatory to continue the contribution in PF? The ceiling Basic Salary limit is Rs. 15,000/- with the new amendment.
You can restrict the PF deduction as per statutory norms and deduct on Rs. 6,500 (though the present limit is Rs. 15,000 per month). If a member continues their membership, you should do the same, but you cannot stop the contribution without the employee's consent.
You do not need to fill out Form-26(6). If employees wish to contribute more than 12% per month, then you must fill out Form 26(6) mandatorily with the employee's consent and the company's undertaking.
Mayank Panchal Head HR Real Namkeen Nadiad
From India, Anand
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SC Judgment-No obligation to excess contribution than Statutory Limit.docx
PF Contribution on Leave Encashment - Clarification by EPFO.pdf