Can we deduct pension amount on a pro-rata basis?
For example, if an employee joins an establishment on the 15th day of the month, and their basic salary is Rs. 16,000, they would earn Rs. 8,000 for 15 days. We deduct provident fund (PF) on Rs. 8,000, which amounts to Rs. 960. However, in the case of the pension scheme, the maximum limit is Rs. 6,500. Therefore, for 15 days, the pensionable basic would be Rs. 3,250. We would deduct pension contributions based on Rs. 3,250, which equals Rs. 271.
Please advise me on whether this calculation aligns with the pension scheme requirements.
From India, Bareli
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12For example, if an employee joins an establishment on the 15th day of the month, and their basic salary is Rs. 16,000, they would earn Rs. 8,000 for 15 days. We deduct provident fund (PF) on Rs. 8,000, which amounts to Rs. 960. However, in the case of the pension scheme, the maximum limit is Rs. 6,500. Therefore, for 15 days, the pensionable basic would be Rs. 3,250. We would deduct pension contributions based on Rs. 3,250, which equals Rs. 271.
Please advise me on whether this calculation aligns with the pension scheme requirements.
From India, Bareli
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Dear Saini Due to PF act it is right to deduct his pension contribution. regards J tomar 9313353831
From India, Ghaziabad
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From India, Ghaziabad
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Dear Mukesh Saini,
As per EPS-95, the statutory ceiling of the monthly salary is Rs. 6500/-. If not opted for in excess of Rs. 6500/-, you may not deduct beyond that. This means whether he has worked for one month or one day, the salary will only be taken into account.
Abbas.P.S
From India, Bangalore
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As per EPS-95, the statutory ceiling of the monthly salary is Rs. 6500/-. If not opted for in excess of Rs. 6500/-, you may not deduct beyond that. This means whether he has worked for one month or one day, the salary will only be taken into account.
Abbas.P.S
From India, Bangalore
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PF Pension fund contribution beyond 58 years of age.pdf