Dear Friends,
I have the following doubt: PF administration charges shall be calculated at 1.10% of wages. I am not certain about the definition of wages. Please tell me on what component of wages it has to be calculated - i.e., Gross pay excluding HRA or Gross pay limited to Rs. 6500/-. Can someone help me to resolve my doubt? Please provide a reference for the present G.O. or Amendment regarding the EPF Act.
From India, Madras
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1I have the following doubt: PF administration charges shall be calculated at 1.10% of wages. I am not certain about the definition of wages. Please tell me on what component of wages it has to be calculated - i.e., Gross pay excluding HRA or Gross pay limited to Rs. 6500/-. Can someone help me to resolve my doubt? Please provide a reference for the present G.O. or Amendment regarding the EPF Act.
From India, Madras
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Hi Sreenandhini,
Please find the answers as you required:
- PF is calculated on (basic + DA) and it is covered by the Central Government.
- PF is a kind of benefit and savings for the employees and a part of deduction as well.
- Basic means the minimum wages and wages vary from state to state. The parameters on which wages vary will be according to the cost of living.
- 6500 is the limit of PF.
- DA = Dearness Allowance will vary according to the Central Govt and state Govt. The changing ratio will be different for State and Central Govt.
- Employee Contribution towards PF Ee = 12% Employer Contribution Er = 12% + 1.61% (administration Charges)
- If B + DA = 650 then Ee = 12%, Er = 12% + 1.61% Ee = Rs 780, Er = Rs 780 = 1.61% * 6500 = Rs. 104.65
Calculation A/C 1 (Employee Provident Fund Account, EPF), Ee = 12%, Er = 3.67% Ee = Rs 780, Er = Rs 238.55
A/c 10 (Employee Pension Fund) Er = 8.33% Er = 8.33 * 6500/100 = Rs. 541.45
A/c 2 (Administration Charges), 1.1% 1.1% * 6500 = Rs. 71.50
A/c 21 (Employee Developed Linked Insurance Charges), 0.5% 0.5% * 6500 = Rs. 32.50
A/c 22 (EDLIC), 0.01% 0.01% * 6500 = Rs 0.65
Total Administration Charges = Addition of all 1.1% + 0.5% + 0.01% i.e. Rs (71.50 + 32.50 + 0.65) = Rs 104.50
I hope now you will be able to understand your query in a better way.
Regards, Aashi
From India, Mumbai
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Please find the answers as you required:
- PF is calculated on (basic + DA) and it is covered by the Central Government.
- PF is a kind of benefit and savings for the employees and a part of deduction as well.
- Basic means the minimum wages and wages vary from state to state. The parameters on which wages vary will be according to the cost of living.
- 6500 is the limit of PF.
- DA = Dearness Allowance will vary according to the Central Govt and state Govt. The changing ratio will be different for State and Central Govt.
- Employee Contribution towards PF Ee = 12% Employer Contribution Er = 12% + 1.61% (administration Charges)
- If B + DA = 650 then Ee = 12%, Er = 12% + 1.61% Ee = Rs 780, Er = Rs 780 = 1.61% * 6500 = Rs. 104.65
Calculation A/C 1 (Employee Provident Fund Account, EPF), Ee = 12%, Er = 3.67% Ee = Rs 780, Er = Rs 238.55
A/c 10 (Employee Pension Fund) Er = 8.33% Er = 8.33 * 6500/100 = Rs. 541.45
A/c 2 (Administration Charges), 1.1% 1.1% * 6500 = Rs. 71.50
A/c 21 (Employee Developed Linked Insurance Charges), 0.5% 0.5% * 6500 = Rs. 32.50
A/c 22 (EDLIC), 0.01% 0.01% * 6500 = Rs 0.65
Total Administration Charges = Addition of all 1.1% + 0.5% + 0.01% i.e. Rs (71.50 + 32.50 + 0.65) = Rs 104.50
I hope now you will be able to understand your query in a better way.
Regards, Aashi
From India, Mumbai
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aaashi please try to come on chat want to ask in detail about PF we are paying PF administration charges on the total gross wages earned by employee.... , are we doing right or wrong ;(
From India, Madras
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From India, Madras
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I have a doubt regarding the contribution of PF from the employer's side. As I understand it, there are three ways of contribution:
1. PF
2. Family Pension Scheme
3. Deposit Linked Insurance Fund
My doubt is whether the employer has to choose their contribution from the above three options, or if they have to contribute a certain percentage to all three from the total 12%.
For example, is the employer's contribution for the Pension Fund 8.33% + 3.67% for the Pension Fund?
Please clarify my doubt.
Regards,
Kalyani
From India, Ahmedabad
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1. PF
2. Family Pension Scheme
3. Deposit Linked Insurance Fund
My doubt is whether the employer has to choose their contribution from the above three options, or if they have to contribute a certain percentage to all three from the total 12%.
For example, is the employer's contribution for the Pension Fund 8.33% + 3.67% for the Pension Fund?
Please clarify my doubt.
Regards,
Kalyani
From India, Ahmedabad
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Dear Sir,
For the past four years, I have not created the challan for ESIC and PF as work has stopped. Now, I want to contribute to the employees. What should I do to reopen the PF and ESIC accounts? Also, please suggest what charges I will need to pay for PF for the past four years.
Thank you.
From India, Howrah
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For the past four years, I have not created the challan for ESIC and PF as work has stopped. Now, I want to contribute to the employees. What should I do to reopen the PF and ESIC accounts? Also, please suggest what charges I will need to pay for PF for the past four years.
Thank you.
From India, Howrah
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Pf challan calculation with all admin charges find excel sheet here it will be helpfull for you
From India, Gurgaon
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From India, Gurgaon
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Hello, Sir.
My minimum salary is 11069 INR. EPF share is 13.67% - 1478. ESI is 4.75% - 526. Administrative charges are 6.96% - 910. The total is 13084. However, the cash in hand is 9547. I am having trouble understanding these administrative charges and on what basis should I deduct this amount. What is being deducted?
Thank you.
From India, Ludhiana
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My minimum salary is 11069 INR. EPF share is 13.67% - 1478. ESI is 4.75% - 526. Administrative charges are 6.96% - 910. The total is 13084. However, the cash in hand is 9547. I am having trouble understanding these administrative charges and on what basis should I deduct this amount. What is being deducted?
Thank you.
From India, Ludhiana
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Dear HR friends,
I am Sridhar and have been working in a small organization. I would like to inquire about the clarity of PF calculation for both employees and employers, specifically:
1. Calculation of administrative charges.
2. Calculation of EDLI and its purposes.
3. Recent amendments in PF and ESI applicable to all HR professionals.
Regards,
Sridhar
From United States, Huntsville
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I am Sridhar and have been working in a small organization. I would like to inquire about the clarity of PF calculation for both employees and employers, specifically:
1. Calculation of administrative charges.
2. Calculation of EDLI and its purposes.
3. Recent amendments in PF and ESI applicable to all HR professionals.
Regards,
Sridhar
From United States, Huntsville
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S.O. 827(E)- Central government fixes the administrative charges payable by the employer for the.pdf