I am working in a company that is very small, with around 300 employees. Currently, the management does not have any HR policies in place. I would like to know if we deduct the minimum PF, which I believe is 768 (please correct me if I'm wrong), what will be the employee contribution considering that the basic salary will not be counted in it.
Note:
1) Only the minimum PF deduction is done from the employee's salary.
2) What will be the employer's contribution?
Regards.
From India, Gurgaon
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Note:
1) Only the minimum PF deduction is done from the employee's salary.
2) What will be the employer's contribution?
Regards.
From India, Gurgaon
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PF Registration for Companies with 300 Employees
You have a workforce of 300 employees, but you haven't completed the PF registration yet. Immediately visit the Regional PF Office in your area and consult with the enforcement officer. Regardless of the employee's salary, consider their basic pay as Rs. 6500/- and start deducting the PF. Begin remitting the same after obtaining the PF Registration Code for your company.
Please refer to the Employees Provident Fund Act, which is available on this site, and proceed accordingly.
From India, Kumbakonam
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1189You have a workforce of 300 employees, but you haven't completed the PF registration yet. Immediately visit the Regional PF Office in your area and consult with the enforcement officer. Regardless of the employee's salary, consider their basic pay as Rs. 6500/- and start deducting the PF. Begin remitting the same after obtaining the PF Registration Code for your company.
Please refer to the Employees Provident Fund Act, which is available on this site, and proceed accordingly.
From India, Kumbakonam
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Provident Fund Contribution Breakdown
Total Provident Fund contribution is 25.61% (Rs.1664.65/-) for a maximum of Rs.6500/- as BASIC+ DA.
By Employee (Rule 10):
- PF is 12%, i.e., Rs.780/-
Total: 12%, i.e., Rs.780/-
By Employer (Rule 11):
- Provident Fund is 3.67%, i.e., Rs.238.55/-
- Pension Fund is 8.33%, i.e., Rs.541.45/-
- PF admin charge is 1.10%, i.e., Rs.71.5/-
- EDLIS is 0.50%, i.e., Rs.32.5/-
- EDLIS admin charge is 0.01%, i.e., Rs.0.65
Total: 13.61% is Rs.884.65/-
Grand Total: 12% + 13.61% = 25.61%
780 + 884.65 = Rs.1664.65/-
From India, Chennai
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Total Provident Fund contribution is 25.61% (Rs.1664.65/-) for a maximum of Rs.6500/- as BASIC+ DA.
By Employee (Rule 10):
- PF is 12%, i.e., Rs.780/-
Total: 12%, i.e., Rs.780/-
By Employer (Rule 11):
- Provident Fund is 3.67%, i.e., Rs.238.55/-
- Pension Fund is 8.33%, i.e., Rs.541.45/-
- PF admin charge is 1.10%, i.e., Rs.71.5/-
- EDLIS is 0.50%, i.e., Rs.32.5/-
- EDLIS admin charge is 0.01%, i.e., Rs.0.65
Total: 13.61% is Rs.884.65/-
Grand Total: 12% + 13.61% = 25.61%
780 + 884.65 = Rs.1664.65/-
From India, Chennai
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From 22nd September 1997, all establishments employing 20 or more persons are brought under the purview of the Act from the very date of setup, subject to the fulfillment of other conditions. The Act does not apply to certain establishments as specified under Section 16 of the Act. Please check with the Act to determine if your establishment comes under the purview of the EPF Act. Most establishments fall under its purview.
Presently, an employee at the time of joining employment and receiving wages up to Rs. 6500/- is required to become a member. Now, an employee is eligible for membership of the fund from the very first date of joining a covered establishment.
The current rate of contribution is 12% by the employer, 0.5% towards E.D.L.I. contribution, and 1.15% towards administrative charges. The employee has to contribute 12% separately, which can be deducted from the employee's wages.
If your company started approximately three years ago, you may have to pay arrears subscription for the previous period, which could amount to a significant sum due to interest and damages charged. Please consult a proper adviser to avoid substantial payments.
From India, Madras
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Presently, an employee at the time of joining employment and receiving wages up to Rs. 6500/- is required to become a member. Now, an employee is eligible for membership of the fund from the very first date of joining a covered establishment.
The current rate of contribution is 12% by the employer, 0.5% towards E.D.L.I. contribution, and 1.15% towards administrative charges. The employee has to contribute 12% separately, which can be deducted from the employee's wages.
If your company started approximately three years ago, you may have to pay arrears subscription for the previous period, which could amount to a significant sum due to interest and damages charged. Please consult a proper adviser to avoid substantial payments.
From India, Madras
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Provident Fund - Excluded Employee - Definition.pdf