Whereas you have received satisfactory clarification, I would like to add only one point. In the case of an existing employee whose basic+DA was less than Rs. 6500/- PM and was eligible for PF, on getting an increment/promotion, if his salary+DA increases more than Rs. 6500/- PM, the organization should deduct his PF up to Rs. 6500/- and need to pay the employer's contribution accordingly.
Dr. K. K. Anirudhan
From India, Kochi
5Dr. K. K. Anirudhan
From India, Kochi
Dear Ishwarsingh,
Rs. 659 is not merely 3.67%. For a salary of Rs. 10,000, the employer contribution @ 12% will be Rs. 1,200. However, the EPS contribution is to be restricted at 8.33% of Rs. 6,500, i.e. Rs. 541. The difference between the total contribution and the EPS contribution, i.e., 1200 - 541, is 659.
Abbas.P.S
From India, Bangalore
Rs. 659 is not merely 3.67%. For a salary of Rs. 10,000, the employer contribution @ 12% will be Rs. 1,200. However, the EPS contribution is to be restricted at 8.33% of Rs. 6,500, i.e. Rs. 541. The difference between the total contribution and the EPS contribution, i.e., 1200 - 541, is 659.
Abbas.P.S
From India, Bangalore
Subject: Re: EMPLOYEES PROVIDENT FUND - Still a lot of confusion
D.P. Jayakumar. Follow
Hi friends,
This is the correct legal position. If an employee is drawing a salary (Basic+DA) of more than Rs. 6500/- at the time of joining, he is an excluded employee, and the question of bringing him within the PF act is voluntary with the mutual consent of both the employee and the employer willing to give their contributions. There is no mandatory compulsion; but if an employee at the time of joining draws a salary of less than Rs. 6500/- (Basic+DA) and is a covered employee and subsequently due to a salary revision draws a salary of more than Rs. 6500/-(Basic+DA), he has to be compulsorily covered under PF up to Rs. 6500/- with no choice to exclude him. Contribution on salary beyond Rs. 6500/- is purely voluntary with both the employee and the employer giving their consent for their respective contributions.
From India, Pondicherry
D.P. Jayakumar. Follow
Hi friends,
This is the correct legal position. If an employee is drawing a salary (Basic+DA) of more than Rs. 6500/- at the time of joining, he is an excluded employee, and the question of bringing him within the PF act is voluntary with the mutual consent of both the employee and the employer willing to give their contributions. There is no mandatory compulsion; but if an employee at the time of joining draws a salary of less than Rs. 6500/- (Basic+DA) and is a covered employee and subsequently due to a salary revision draws a salary of more than Rs. 6500/-(Basic+DA), he has to be compulsorily covered under PF up to Rs. 6500/- with no choice to exclude him. Contribution on salary beyond Rs. 6500/- is purely voluntary with both the employee and the employer giving their consent for their respective contributions.
From India, Pondicherry
Dear Ashish,
u reproduce the sec.2 (b) by which it is very clear that on which components of wages/salary have been attracted, Overtime Wages are not covered for the contribution to PF And hence ur management and of course u have to stick up to ur decision not to pay contribution on OT. LET the PF authority take action and initiate inquiry u/s.7-A; when u could submit ur statement along with provisions therein.
Regards,
KIRAN KALE
From India, Kolhapur
u reproduce the sec.2 (b) by which it is very clear that on which components of wages/salary have been attracted, Overtime Wages are not covered for the contribution to PF And hence ur management and of course u have to stick up to ur decision not to pay contribution on OT. LET the PF authority take action and initiate inquiry u/s.7-A; when u could submit ur statement along with provisions therein.
Regards,
KIRAN KALE
From India, Kolhapur
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