Hello Everyone,
There is a situation regarding PF deduction that I would like to discuss. As per the PF rules, there should be a 12% deduction on the basic salary. However, there is a company that deducts Rs. 1800 from both sides if the CTC exceeds Rs. 30,000 per month. Regardless of whether an individual's CTC is 1 lakh or 2 lakhs, they only deduct Rs. 1800 for PF. Upon calculating, we have found that Rs. 1800 is not equivalent to 12% of the basic salary. Could you please advise if there is any provision in the Act that permits them to cap the PF deduction at Rs. 1800?
Thank you,
Atul Khanna
From India, Gurgaon
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41There is a situation regarding PF deduction that I would like to discuss. As per the PF rules, there should be a 12% deduction on the basic salary. However, there is a company that deducts Rs. 1800 from both sides if the CTC exceeds Rs. 30,000 per month. Regardless of whether an individual's CTC is 1 lakh or 2 lakhs, they only deduct Rs. 1800 for PF. Upon calculating, we have found that Rs. 1800 is not equivalent to 12% of the basic salary. Could you please advise if there is any provision in the Act that permits them to cap the PF deduction at Rs. 1800?
Thank you,
Atul Khanna
From India, Gurgaon
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Dear Atul,
Yes, there is ease for companies to lock the PF at Rs. 15,000 basic. However, this should be done right from the beginning. Previously, the ceiling limit was Rs. 6,500. This ceiling limit has been raised to Rs. 15,000. If you calculate, you will find the contribution math comes to Rs. 1,800.
Thank you.
From India, Pune
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Yes, there is ease for companies to lock the PF at Rs. 15,000 basic. However, this should be done right from the beginning. Previously, the ceiling limit was Rs. 6,500. This ceiling limit has been raised to Rs. 15,000. If you calculate, you will find the contribution math comes to Rs. 1,800.
Thank you.
From India, Pune
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