Hello all, I have joined a new firm where the highest salary paid is Rs. 1,00,000/- p.m. and the lowest is Rs. 5000/- p.m. There is one consultant who is taking care of all legalities (Factories Act, ESI, PF, etc.). He just sends us a challan of the combined figure for ESI and PF. I came to know that the deduction of PF is Rs. 780/- for all. Is this legal? As per the law, 12% of the basic should be deducted. If we want to implement 12% of Basic, can we implement it from the month of August or have to follow the financial year? Kindly reply.
From India, Kolkata
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From India, Kolkata
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PF Deduction Ceiling
The PF deduction ceiling can be set up to ₹6,500, but if management wishes, they can deduct more than ₹6,500. You can start deductions exceeding ₹6,500 from August. However, once you do that, in case of financial difficulties, you cannot reduce the contributions. So, think carefully before implementing this change.
Regards,
From India, Pune
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470The PF deduction ceiling can be set up to ₹6,500, but if management wishes, they can deduct more than ₹6,500. You can start deductions exceeding ₹6,500 from August. However, once you do that, in case of financial difficulties, you cannot reduce the contributions. So, think carefully before implementing this change.
Regards,
From India, Pune
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Legal Compliance Plan.xls