Hi,
Need some help on the below points:
I am working for private concern in bangalore, Currently my company if deducting PF amount based on Basic salary *12%. Now they Changed the PF deduction rule to deduct based on the following calculation.
If basic/gross - HRA is more than 15000, then contribution from both employee and employer would be 15000 * 12%.
For ex: Basic = 33000 HRA = 15800
Basic - HRA = 17200
PF Contribution(Emp and Employer) = 17200*12% = 2064 + 2064 = 4128
Just curious to know, is this rule according to EPF act? Will there be any impact on employees ?
From Singapore, undefined
Need some help on the below points:
I am working for private concern in bangalore, Currently my company if deducting PF amount based on Basic salary *12%. Now they Changed the PF deduction rule to deduct based on the following calculation.
If basic/gross - HRA is more than 15000, then contribution from both employee and employer would be 15000 * 12%.
For ex: Basic = 33000 HRA = 15800
Basic - HRA = 17200
PF Contribution(Emp and Employer) = 17200*12% = 2064 + 2064 = 4128
Just curious to know, is this rule according to EPF act? Will there be any impact on employees ?
From Singapore, undefined
That is wrong practices which are being followed in your company.
Pf Contribution would be based on Basic Salary either it is limited to Rs 15000/- or
Basic ie 33000 as in your case.
There are no any means for calculating PF Contribution on Difference of Basic - HRA amount.
From India
66Pf Contribution would be based on Basic Salary either it is limited to Rs 15000/- or
Basic ie 33000 as in your case.
There are no any means for calculating PF Contribution on Difference of Basic - HRA amount.
From India
I think you already posted this message before and got replies from the members.
But in any case, in the particular case, there is nothing wrong as the employer is paying PF on salary about 15000. There is no need for him to pay PF on any amount above 15000.....
But in other cases, basic - hr is wrong if the total is going below 15000. The employer will be liable to pay the difference, penalty and interest. There is no liability on the employee for the mistake of the employer.
From India, Mumbai
But in any case, in the particular case, there is nothing wrong as the employer is paying PF on salary about 15000. There is no need for him to pay PF on any amount above 15000.....
But in other cases, basic - hr is wrong if the total is going below 15000. The employer will be liable to pay the difference, penalty and interest. There is no liability on the employee for the mistake of the employer.
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf