Hi all,
If a person's basic salary is 15,000 rupees per month, what was his PF contribution as per the revised structure? i.e., if the PF contribution is calculated based on 15,000 (15,000*12%). So, will the employee's salary increase or remain the same? Please advise regarding this.
From India, Coimbatore
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20If a person's basic salary is 15,000 rupees per month, what was his PF contribution as per the revised structure? i.e., if the PF contribution is calculated based on 15,000 (15,000*12%). So, will the employee's salary increase or remain the same? Please advise regarding this.
From India, Coimbatore
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Hi, Amirtha Varshini,
Employee salary will remain the same. If the basic is 15000, then there will be more deduction. His PF deduction will be 15000 * 12% = 1800/-. The only thing is the net salary will reduce compared to the earlier net take-home, and even the company contribution to PF will increase.
Regards, Jeevarathnam P
From India, Bangalore
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Employee salary will remain the same. If the basic is 15000, then there will be more deduction. His PF deduction will be 15000 * 12% = 1800/-. The only thing is the net salary will reduce compared to the earlier net take-home, and even the company contribution to PF will increase.
Regards, Jeevarathnam P
From India, Bangalore
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Hi, Another query arises. If Person Gross is 15,000/- his, basic pay 6000/- his, pf calculated from 6000/- or 15,000/-? Please do clarify
From India, Coimbatore
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From India, Coimbatore
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Hi Amritha,
It simply means that the employee whose Basic salary is above $6500 and $15000 or less shall be included in the PF scheme. It does not mean that you have to increase the salary. Earlier, it was optional for the employer to deduct the PF of those employees whose basic salary is above $6500. However, most companies do deduct PF regardless of the basic salary. Now it is mandatory to deduct the PF for employees whose basic salary is between $6500 and $15000.
My introduction:
This is Alok (MBA HR). I am working as an HR trainee at Cosmo Public Ltd. I am currently in a learning phase. You can reach me at kulkarni.alok02@gmail.com. I am willing to share HR knowledge and professional networking.
Regards.
From India, Pune
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It simply means that the employee whose Basic salary is above $6500 and $15000 or less shall be included in the PF scheme. It does not mean that you have to increase the salary. Earlier, it was optional for the employer to deduct the PF of those employees whose basic salary is above $6500. However, most companies do deduct PF regardless of the basic salary. Now it is mandatory to deduct the PF for employees whose basic salary is between $6500 and $15000.
My introduction:
This is Alok (MBA HR). I am working as an HR trainee at Cosmo Public Ltd. I am currently in a learning phase. You can reach me at kulkarni.alok02@gmail.com. I am willing to share HR knowledge and professional networking.
Regards.
From India, Pune
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Hi, PF will be calculated on 6000. It is always on basic and not gross.
From India, Pune
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From India, Pune
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Hi Kulkarni, I agree your views am asking that if a person gross is 15,000/- basic will comes under 6000/- , PF will be deducted from 6,000/- . Above 15,000/- they can exempted from it.
From India, Coimbatore
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From India, Coimbatore
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Hi,
Yes, if the basic salary is above 15000, they can be exempted for the difference in the amount. However, most organizations do deduct PF even if the basic is above 15000. May I have your email id?
Thanks & regards.
From India, Pune
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Yes, if the basic salary is above 15000, they can be exempted for the difference in the amount. However, most organizations do deduct PF even if the basic is above 15000. May I have your email id?
Thanks & regards.
From India, Pune
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Hi Amirtha Varshini If the gross is 15000 & Basic+DA is 6000 then PF shall be calculated on 6000/- only
From India, Bangalore
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From India, Bangalore
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Hi Amrutha,
Updates! Updates! On the above PF revision. Those employees whose basic salary is above 15,000 now have the option to put all the PF contributions into the PF account instead of putting the 3.67% in the pension account. The same option is available for employer contributions towards the above category of employees. If I am mistaken, please do correct me.
What HR functions do you handle?
Regards.
From India, Pune
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Updates! Updates! On the above PF revision. Those employees whose basic salary is above 15,000 now have the option to put all the PF contributions into the PF account instead of putting the 3.67% in the pension account. The same option is available for employer contributions towards the above category of employees. If I am mistaken, please do correct me.
What HR functions do you handle?
Regards.
From India, Pune
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Hi Could you please give some more clarification on 3.67% share. Is there any govt notification.?
From India, New Delhi
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From India, New Delhi
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Friends,
The eligibility for PF is for those who are getting a total emoluments of either Rs. 15,000 or less. Is that right? The next question is, under the current circumstances, suppose an employee is receiving Rs. 13,000 as their total emoluments, for how much do we have to deduct? Should we deduct only for Rs. 6,500 (the previous limit) or Rs. 13,000?
From India, Kottayam
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The eligibility for PF is for those who are getting a total emoluments of either Rs. 15,000 or less. Is that right? The next question is, under the current circumstances, suppose an employee is receiving Rs. 13,000 as their total emoluments, for how much do we have to deduct? Should we deduct only for Rs. 6,500 (the previous limit) or Rs. 13,000?
From India, Kottayam
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Dear Kuruvilla,
PF is not calculated on Total Emoluments (Gross Salary). It is calculated on (BASIC+DA) or BASIC only. If the employee's total emoluments are 13,000/-, there is no clarity. Please refer to his Basic Salary, on which the deduction is 12%.
For better understanding, consider the following example:
Suppose his Basic Salary is 15,000/- (not Total emoluments or Gross salary).
Employee Contribution - 12% on 15000 = 1800
Employer Contribution - EPS- 8.33% on 15000 = 1249.5
EPF- 3.67% on 15000 = 550.5
EDLI charges- 0.5% on 15000 = 75
EPF Admin charges - 1.1% on 15000 = 165
EDLI Admin charges- 0.01% on 15000 = 1.5 (round off to 2).
I hope I have clarified your doubt. Please let me know if you have any queries.
T. Prathap, HR Executive, Human Resource Department,
Narayana Health Group of Hospitals
Mobile: 8884291530.
Attribution: https://www.citehr.com/504737-employ...#ixzz3D4cfRdD1
From India, Madras
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PF is not calculated on Total Emoluments (Gross Salary). It is calculated on (BASIC+DA) or BASIC only. If the employee's total emoluments are 13,000/-, there is no clarity. Please refer to his Basic Salary, on which the deduction is 12%.
For better understanding, consider the following example:
Suppose his Basic Salary is 15,000/- (not Total emoluments or Gross salary).
Employee Contribution - 12% on 15000 = 1800
Employer Contribution - EPS- 8.33% on 15000 = 1249.5
EPF- 3.67% on 15000 = 550.5
EDLI charges- 0.5% on 15000 = 75
EPF Admin charges - 1.1% on 15000 = 165
EDLI Admin charges- 0.01% on 15000 = 1.5 (round off to 2).
I hope I have clarified your doubt. Please let me know if you have any queries.
T. Prathap, HR Executive, Human Resource Department,
Narayana Health Group of Hospitals
Mobile: 8884291530.
Attribution: https://www.citehr.com/504737-employ...#ixzz3D4cfRdD1
From India, Madras
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Dear Amritha,
Your query is not clear. To be eligible to contribute to the Provident Fund, only his/her Basic Salary and Dearness Allowance should be taken into consideration for PF contribution, not the gross salary. The gross salary, whatever it may be, does not matter. Now, regarding your question about the ceiling, previously it was Rs.6500 (Basic + DA). Now, this has been increased to Rs.15,000 per month. If the Basic and DA are less than Rs.15,000, the contribution should be based on the actual Basic and DA earned by the employee. If the salary is above Rs.15,000 per month (Basic and DA), then the ceiling will apply, either restricting to the ceiling or contributing based on actual earnings, depending on the employer's policy.
As an employee, one should not skip contributing to the scheme as it serves as a form of savings for the employee. Whether there is a ceiling or not, contributions should be made. This is a long-term saving and is referred to as Bhavishya Nidhi. Believe it or not, our contributions when we joined the scheme used to be only Rs.12 per month back in the sixties. Now, you can compare the past, present, and future yourself.
Adoni Suguresh
Sr. Executive (Personnel, Administration & Industrial Relations) - Retired
Labour Laws Consultant
From India, Bidar
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Your query is not clear. To be eligible to contribute to the Provident Fund, only his/her Basic Salary and Dearness Allowance should be taken into consideration for PF contribution, not the gross salary. The gross salary, whatever it may be, does not matter. Now, regarding your question about the ceiling, previously it was Rs.6500 (Basic + DA). Now, this has been increased to Rs.15,000 per month. If the Basic and DA are less than Rs.15,000, the contribution should be based on the actual Basic and DA earned by the employee. If the salary is above Rs.15,000 per month (Basic and DA), then the ceiling will apply, either restricting to the ceiling or contributing based on actual earnings, depending on the employer's policy.
As an employee, one should not skip contributing to the scheme as it serves as a form of savings for the employee. Whether there is a ceiling or not, contributions should be made. This is a long-term saving and is referred to as Bhavishya Nidhi. Believe it or not, our contributions when we joined the scheme used to be only Rs.12 per month back in the sixties. Now, you can compare the past, present, and future yourself.
Adoni Suguresh
Sr. Executive (Personnel, Administration & Industrial Relations) - Retired
Labour Laws Consultant
From India, Bidar
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This is Priya.
The above discussion was very useful for me, and I would like to clarify a few doubts I have. In earlier PF contributions, if the basic salary of the employee is Rs. 6500/-, they can be exempted from PF. Otherwise, 12% will be deducted, i.e., 6500 * 12% = Rs. 780 was the contribution to the PF account. Even if the basic salary is more than Rs. 6500/-, a flat rate of Rs. 780/- was deducted. In our company, we deduct a flat rate of Rs. 780/- for employees who have salaries both above and below Rs. 6500/-.
From the above conversation, I have learned that if the employee's basic salary is Rs. 15000/- or more, he/she can be exempted from PF. If we calculate 12% of the basic salary of Rs. 15000/-, it may come around Rs. 1800/-. Is this Rs. 1800/- the flat rate we have to deduct for all employees, or is there any other flat rate to be deducted?
Thanks in advance for your replies.
From India, Madras
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The above discussion was very useful for me, and I would like to clarify a few doubts I have. In earlier PF contributions, if the basic salary of the employee is Rs. 6500/-, they can be exempted from PF. Otherwise, 12% will be deducted, i.e., 6500 * 12% = Rs. 780 was the contribution to the PF account. Even if the basic salary is more than Rs. 6500/-, a flat rate of Rs. 780/- was deducted. In our company, we deduct a flat rate of Rs. 780/- for employees who have salaries both above and below Rs. 6500/-.
From the above conversation, I have learned that if the employee's basic salary is Rs. 15000/- or more, he/she can be exempted from PF. If we calculate 12% of the basic salary of Rs. 15000/-, it may come around Rs. 1800/-. Is this Rs. 1800/- the flat rate we have to deduct for all employees, or is there any other flat rate to be deducted?
Thanks in advance for your replies.
From India, Madras
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Hi,
If the basic wages are 15000/- or above, you can restrict the contribution to Rs. 1800/-. If the basis is less, then you may have to contribute 12% of the wages. For example, if the basic is 10000/-, then the PF contribution will be Rs. 1200/-.
From India, Bangalore
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If the basic wages are 15000/- or above, you can restrict the contribution to Rs. 1800/-. If the basis is less, then you may have to contribute 12% of the wages. For example, if the basic is 10000/-, then the PF contribution will be Rs. 1200/-.
From India, Bangalore
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Hi all,
There have not been any extra changes in the rules and regulations of PF. Only the limit of PF has been extended from Rs. 6500/- basic to Rs. 15000/- basic salary. The rest of the rules are the same for the PF fund and pension fund.
Furthermore, PF can be deducted from the actual basic salary of the employee even if it exceeds Rs. 15000/-. It is a contractual agreement between the employer and employee, which is mentioned in the Appointment Letter.
If the employee earns a basic salary of more than Rs. 15000 and does not wish to contribute to PF, the employer takes FORM 11 from them and submits it to the PF office along with a letter.
Regards,
Rahul
From India, Pune
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There have not been any extra changes in the rules and regulations of PF. Only the limit of PF has been extended from Rs. 6500/- basic to Rs. 15000/- basic salary. The rest of the rules are the same for the PF fund and pension fund.
Furthermore, PF can be deducted from the actual basic salary of the employee even if it exceeds Rs. 15000/-. It is a contractual agreement between the employer and employee, which is mentioned in the Appointment Letter.
If the employee earns a basic salary of more than Rs. 15000 and does not wish to contribute to PF, the employer takes FORM 11 from them and submits it to the PF office along with a letter.
Regards,
Rahul
From India, Pune
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Dear seniors,
Please clarify my one question:
1.1% administrative charges will be calculated on the Basic amount without a ceiling of Rs. 15000/- or will be calculated on Basic with a ceiling of Rs. 15000/-
(Our Principal Employer is calculating flatly at 13.61% on Rs. 15000/- (previously Rs. 6500/-) even if the Basic amount is more than Rs. 15000/-)
Kindly clarify the same.
Regards,
AHC Ansari/Admin
RailTel Bangalore
From India
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Please clarify my one question:
1.1% administrative charges will be calculated on the Basic amount without a ceiling of Rs. 15000/- or will be calculated on Basic with a ceiling of Rs. 15000/-
(Our Principal Employer is calculating flatly at 13.61% on Rs. 15000/- (previously Rs. 6500/-) even if the Basic amount is more than Rs. 15000/-)
Kindly clarify the same.
Regards,
AHC Ansari/Admin
RailTel Bangalore
From India
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Dear Ansari,
If an employee's basic salary is less than 15000/-, suppose 12000/-, the employer contribution would be 13.61% on 12000, which equals 1633.2 (rounded off to 1633).
If an employee's basic salary is 15000/-, suppose 12000/-, the employer contribution would be 13.61% on 15000, resulting in 2041.5 (rounded off to 2042).
If an employee's basic salary is more than 15000/-, suppose 20000/-, the employer contribution would still be 13.61% on 15000. Even if the employee contribution is 12% on 20000 = 2400 or 12% on 15000 = 1800, the employer contribution remains the same if the Basic + DA is more than 15000.
I hope I clarified your doubt. Please let me know if you have any queries.
T. Prathap
HR Executive
Human Resource Department
Narayana Health Group of Hospitals
Email: prathap.t@nhhospitals.org
Mobile: 8884291530
From India, Madras
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If an employee's basic salary is less than 15000/-, suppose 12000/-, the employer contribution would be 13.61% on 12000, which equals 1633.2 (rounded off to 1633).
If an employee's basic salary is 15000/-, suppose 12000/-, the employer contribution would be 13.61% on 15000, resulting in 2041.5 (rounded off to 2042).
If an employee's basic salary is more than 15000/-, suppose 20000/-, the employer contribution would still be 13.61% on 15000. Even if the employee contribution is 12% on 20000 = 2400 or 12% on 15000 = 1800, the employer contribution remains the same if the Basic + DA is more than 15000.
I hope I clarified your doubt. Please let me know if you have any queries.
T. Prathap
HR Executive
Human Resource Department
Narayana Health Group of Hospitals
Email: prathap.t@nhhospitals.org
Mobile: 8884291530
From India, Madras
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Admin charges are 1.1% of the amount shown in chalan as wages . Varghese Mathew 09961266966
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Varghese, I didn’t understand you query, Please explain in detail your query.
From India, Madras
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From India, Madras
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Hope my table could add some thing to the post (Attached)
From India, Warangal
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From India, Warangal
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Hi, I'm Sridhar V,
I am working as an HR Executive in one of the leading textile industries in Tirupur. However, I am unable to further my knowledge in my profession. Therefore, I am seeking job opportunities in the same field of HR. If anyone is aware of any vacancies anywhere, please inform me. I would greatly appreciate your assistance.
Do the needful, Sir/Madam.
With Regards,
Sridhar V
(99527-372521)
(
)
From India
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I am working as an HR Executive in one of the leading textile industries in Tirupur. However, I am unable to further my knowledge in my profession. Therefore, I am seeking job opportunities in the same field of HR. If anyone is aware of any vacancies anywhere, please inform me. I would greatly appreciate your assistance.
Do the needful, Sir/Madam.
With Regards,
Sridhar V
(99527-372521)
(
From India
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Employer-PF-res trict to wages of Rs 6500.pdf