Dear All,
I have one query, please let me give the solution.
We are very small organization and we are deducting the PF amount within the limit of 6500/- Rs.
Our Case is;;
In the last month, one of the employee met with an accident and she attended her duty from 1st sept. to 20th sept. 2013 then after 21st she met within an accident and remaining days she not attended her duty. And her salary of these 20 days is Rs. 8000 (Basic only). So, can we deduct the PF amount like 6500/- * 12% of what?
Her salary is deducted from the month of Sept. 2013. (10 Days)
i.e. calculation is like
1. If her 20 days salary is crossed the limit of 6500 then we can deduct the PF is 6500*12%
2. and if her 20 days salary is crossed the limit of 6500 and she not attended her duty remaining 10 days and if her salary is crossed 6500 then we consider accordingly her present days only and we can deduct pf respect to (6500/30)*20 days * 12% .... Is it ok
Please give me solution about this query… please.
Regards,
Disha G.
Human Resource Department
From India, Ahmedabad
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3I have one query, please let me give the solution.
We are very small organization and we are deducting the PF amount within the limit of 6500/- Rs.
Our Case is;;
In the last month, one of the employee met with an accident and she attended her duty from 1st sept. to 20th sept. 2013 then after 21st she met within an accident and remaining days she not attended her duty. And her salary of these 20 days is Rs. 8000 (Basic only). So, can we deduct the PF amount like 6500/- * 12% of what?
Her salary is deducted from the month of Sept. 2013. (10 Days)
i.e. calculation is like
1. If her 20 days salary is crossed the limit of 6500 then we can deduct the PF is 6500*12%
2. and if her 20 days salary is crossed the limit of 6500 and she not attended her duty remaining 10 days and if her salary is crossed 6500 then we consider accordingly her present days only and we can deduct pf respect to (6500/30)*20 days * 12% .... Is it ok
Please give me solution about this query… please.
Regards,
Disha G.
Human Resource Department
From India, Ahmedabad
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Hi you can deduct pf on actual drawn basic for 20days and pay.there is no need to pay on Rs.6500/-. the calculation formula shown by you is correct.
From India, Hyderabad
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From India, Hyderabad
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Dear Disha,
Even if the salary exceeds Rs. 6500, the ceiling salary will be treated as 6500 for the whole month. Accordingly, for 20 days of attendance out of 30, the contribution will be 6500 x 20 / 30 x 12% = 520.
Abbas.P.S
From India, Bangalore
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Even if the salary exceeds Rs. 6500, the ceiling salary will be treated as 6500 for the whole month. Accordingly, for 20 days of attendance out of 30, the contribution will be 6500 x 20 / 30 x 12% = 520.
Abbas.P.S
From India, Bangalore
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Disha,
Greetings!!!
You must understand that PF is a fixed contribution and you can not decrease it. It has either to be paid on the basic salary or on 6500 ( keeping in mind , Cap aspect).
If i am not wrong, you are misunderstanding the concept of basic salary and gross salary. Plz clarify
From India, Delhi
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Greetings!!!
You must understand that PF is a fixed contribution and you can not decrease it. It has either to be paid on the basic salary or on 6500 ( keeping in mind , Cap aspect).
If i am not wrong, you are misunderstanding the concept of basic salary and gross salary. Plz clarify
From India, Delhi
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SPKR:
Disha
As per the details posted your employee is drawing more than Rs.6500/- She is not covered under EPF scheme1952 under section 2(f).
According to Section 2(f) EPF Scheme 1952 : excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund under clause (a) or (c) of sub-paragraph (1) of paragraph 69;
(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds [six thousand and five hundred rupees] per month;
Very recently the limit of Rs.6500/- is enhanced in an amendment to the said Act.
SPKR
From India, Bangalore
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Disha
As per the details posted your employee is drawing more than Rs.6500/- She is not covered under EPF scheme1952 under section 2(f).
According to Section 2(f) EPF Scheme 1952 : excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund under clause (a) or (c) of sub-paragraph (1) of paragraph 69;
(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds [six thousand and five hundred rupees] per month;
Very recently the limit of Rs.6500/- is enhanced in an amendment to the said Act.
SPKR
From India, Bangalore
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Disha,
If you are contributing PF for the employees with basic above Rs. 6500/- subject to statutory ceiling, then in this particular case, the basic for 20 days will be deemed as 6500 x 20 / 30.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
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If you are contributing PF for the employees with basic above Rs. 6500/- subject to statutory ceiling, then in this particular case, the basic for 20 days will be deemed as 6500 x 20 / 30.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
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Hi, PF deduction is on the amount of 6500 maximum, and you have to deduct PF on 6500, i.e., 780 (12%). If an employee gets an 8000 basic salary, you have to deduct PF on the amount of 6500 if he only comes to work for 20 days. In such a case, he would receive 5333 Rs, and PF will be deducted on the full amount because the 20 days' salary does not exceed the limit of 6500. If the salary for 20 days crosses this limit, the PF amount remains at 6500.
From India, Bhubaneswar
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From India, Bhubaneswar
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Madam/Sir,
PF is always deducted on the salary earned during the month. If the salary exceeds Rs.6500/- Statutorily you can restrict deduction upto Rs.6500/-. If you are already contributing/deduction PF on full salary (i.e in excess of Rs.6500) then the PF should be deducted on the actual sum paid.
Regards
Pradheep
From India, Vellore
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PF is always deducted on the salary earned during the month. If the salary exceeds Rs.6500/- Statutorily you can restrict deduction upto Rs.6500/-. If you are already contributing/deduction PF on full salary (i.e in excess of Rs.6500) then the PF should be deducted on the actual sum paid.
Regards
Pradheep
From India, Vellore
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Well, I have seen all the discussions. But one thing is for sure, that none is talking about the limit of 6,500. Please note that the limit of Rs. 6,500 is related not just to a mere figure but to the month. In other words, a salary of Rs. 6,500 per month is the limit.
In this case, even though the salary is Rs. 8,000 per month, and for full working days the limit of Rs. 6,500 per month can easily be applicable, it can be confusing when the salary earned is less than the prescribed limit of Rs. 6,500. For 20 days of work, the under-ceiling salary will be Rs. 4,333 and the over-ceiling salary will be Rs. 1,000, making a total of Rs. 5,333 (amount in paisa ignored). In my opinion, the PF should be calculated only on Rs. 4,333, i.e., the under-ceiling salary and not on the entire salary of Rs. 5,333. This logic needs to be clarified because for computer programs, such points can pose a significant hurdle.
Adv. K. H. Kulkarni
From India, Kolhapur
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In this case, even though the salary is Rs. 8,000 per month, and for full working days the limit of Rs. 6,500 per month can easily be applicable, it can be confusing when the salary earned is less than the prescribed limit of Rs. 6,500. For 20 days of work, the under-ceiling salary will be Rs. 4,333 and the over-ceiling salary will be Rs. 1,000, making a total of Rs. 5,333 (amount in paisa ignored). In my opinion, the PF should be calculated only on Rs. 4,333, i.e., the under-ceiling salary and not on the entire salary of Rs. 5,333. This logic needs to be clarified because for computer programs, such points can pose a significant hurdle.
Adv. K. H. Kulkarni
From India, Kolhapur
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The contribution of Rs 520. is correct as posted by Mr ABBAS and Mr KULKARNI. Varghese Mathew 09961266966.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Employees whose salary (Basic+DA) is Rs. 6500/- or below are eligible to be covered under the EPF Act. Deduction of PF is proportionate to the actual number of days an employee worked during the month. Of course, EL/PL should be taken into consideration for this purpose.
So, if any employee worked for 20 days during the month, deductions of the employee's and employer's share should be calculated accordingly.
Eswararao Ivaturi.
From United States, Cupertino
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So, if any employee worked for 20 days during the month, deductions of the employee's and employer's share should be calculated accordingly.
Eswararao Ivaturi.
From United States, Cupertino
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To Disha G. The contribution of Rs. 520/-is correct,as posted by ABBAS,KULKARNI,MATHEW JAYANT_ Corporate manager-H.R./I.R. 7875757963
From India, Pune
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From India, Pune
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Dear All Seniors,
Thank you very much for your very useful and valuable support. I really appreciate your response.
Sir, I also need your help with Gratuity Withdrawal for our employees. We deposit the Gratuity amount into LIC, and there are two cases:
1. One of the employees has completed 4 years, 5 months, and 28 days in the organization. My question is, can he withdraw the Gratuity?
2. One of the employees joined our organization 10 months ago and passed away 3 months ago. Can we withdraw his Gratuity from LIC?
Please assist me with both cases, and if possible, kindly send me the claim form that we need to submit to LIC for Gratuity withdrawal.
Thank you in advance.
Disha G.
From India, Ahmedabad
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Thank you very much for your very useful and valuable support. I really appreciate your response.
Sir, I also need your help with Gratuity Withdrawal for our employees. We deposit the Gratuity amount into LIC, and there are two cases:
1. One of the employees has completed 4 years, 5 months, and 28 days in the organization. My question is, can he withdraw the Gratuity?
2. One of the employees joined our organization 10 months ago and passed away 3 months ago. Can we withdraw his Gratuity from LIC?
Please assist me with both cases, and if possible, kindly send me the claim form that we need to submit to LIC for Gratuity withdrawal.
Thank you in advance.
Disha G.
From India, Ahmedabad
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Dear Disha G.
The arrangement of payment of Gratuity by subscribing to the LIC group Gratuity Scheme has many benefits to employees. One such benefit is that, (I am a bit hesitant in calling this a benefit in this case) in the event of the death of an employee while in service, the successors get the entire amount of Gratuity as if the deceased had worked until his retirement. So, as regards your case no. 2, please go for the claim of the entire amount by considering the 10 months of service he rendered with the company prior to his death together with the future part of years until he would have been retired.
As regards case 1, the period of service is just a little short of the 5-year mark. However, you have not mentioned the reason for his leaving service. Please note that the reason for leaving is an important factor in deciding Gratuity. What I suggest is that instead of being overly emphatic and too clerical about the period of service, I can safely say that the employee is entitled to gratuity. The benefit of a minor shortfall should go to the employee.
Adv. K. H. Kulkarni
From India, Kolhapur
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The arrangement of payment of Gratuity by subscribing to the LIC group Gratuity Scheme has many benefits to employees. One such benefit is that, (I am a bit hesitant in calling this a benefit in this case) in the event of the death of an employee while in service, the successors get the entire amount of Gratuity as if the deceased had worked until his retirement. So, as regards your case no. 2, please go for the claim of the entire amount by considering the 10 months of service he rendered with the company prior to his death together with the future part of years until he would have been retired.
As regards case 1, the period of service is just a little short of the 5-year mark. However, you have not mentioned the reason for his leaving service. Please note that the reason for leaving is an important factor in deciding Gratuity. What I suggest is that instead of being overly emphatic and too clerical about the period of service, I can safely say that the employee is entitled to gratuity. The benefit of a minor shortfall should go to the employee.
Adv. K. H. Kulkarni
From India, Kolhapur
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Dear sir, Madam
I have one query, please let me give the solution.
i am in hr dept looking for pf and esic one year back issues mistake. active employee pf settled but till date i have paid the pf amount same number
Please give me solution about this query… please
From India, Ahmedabad
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I have one query, please let me give the solution.
i am in hr dept looking for pf and esic one year back issues mistake. active employee pf settled but till date i have paid the pf amount same number
Please give me solution about this query… please
From India, Ahmedabad
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Dear Sir, Madam,
I have one query. Please let me know the solution. PF is settled after around 5 years of service, but the employee has been working till date. What is the next step for a resigned employee? Instead of an active employee, the PF was settled, but the employee has been working with the same organization and under the same PF number.
Please provide a solution for this.
Thank you.
From India, Ahmedabad
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I have one query. Please let me know the solution. PF is settled after around 5 years of service, but the employee has been working till date. What is the next step for a resigned employee? Instead of an active employee, the PF was settled, but the employee has been working with the same organization and under the same PF number.
Please provide a solution for this.
Thank you.
From India, Ahmedabad
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Hello, PF is deducted on Basic and DA. Employees who join the organization and draw Rs. 6500/- or below are covered. After joining the organization, even though the limit is crossed, the PF is deducted on Rs. 6500/- only. This amount is calculated based on actual working days during the month, taking into account any paid leave.
Eswararao Ivaturi. Beyond this, employees can.
From United States, Cupertino
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Eswararao Ivaturi. Beyond this, employees can.
From United States, Cupertino
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You can go ahead and calculate PF on 20 days pro-rated Basic salary. That’s the norm for PF deduction, and it is never on the basis of Wages, rather it is on Wages earned.
From India, Chennai
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From India, Chennai
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Dear all,
I had an occasion to discuss the matter with RPFC, and he was of the firm opinion that there cannot be any proportionate reduction in PF contribution in relation to the attendance of the employee. PF is payable on the wages earned and not on the rate of wages. So if the employee draws wages in excess of Rs. 6500/- even though there is a reduction for the absence, then PF is payable for the amount of Rs. 6500/-. But if the wages go below Rs. 6500/-, it has to be on the full amount.
Is there any guideline from the office of the Chief PF Commissioner?
KK
From India, Bhopal
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I had an occasion to discuss the matter with RPFC, and he was of the firm opinion that there cannot be any proportionate reduction in PF contribution in relation to the attendance of the employee. PF is payable on the wages earned and not on the rate of wages. So if the employee draws wages in excess of Rs. 6500/- even though there is a reduction for the absence, then PF is payable for the amount of Rs. 6500/-. But if the wages go below Rs. 6500/-, it has to be on the full amount.
Is there any guideline from the office of the Chief PF Commissioner?
KK
From India, Bhopal
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K. K. Nair,
If your opinion is accepted, a person who works for all days of the month and has not will get equal contribution. The RPFC would have said so to get more money to fund. On my inquiry with Kerala PF official, proportionate recovery is correct.
Varghese Mathew
From India, Thiruvananthapuram
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If your opinion is accepted, a person who works for all days of the month and has not will get equal contribution. The RPFC would have said so to get more money to fund. On my inquiry with Kerala PF official, proportionate recovery is correct.
Varghese Mathew
From India, Thiruvananthapuram
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Dear Disha, PF should be calculated on Basic . If her basic is Rs. 8,000/- then PF will be 12 % of Rs. 8,000/- . Regards, Srinivas
From India, Hyderabad
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From India, Hyderabad
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Dear Mathew sir,
I know a case where a contractor had deposited contributions on a proportionate basis but ultimately had to pay up at the rate of Rs. 780/- per month on the orders of RPFC. I had discussed the matter then with the RPFC, and he was stressing, as per Section 6 of the Act, mandating payment of PF contribution on the wages payable to each of the employees covered under the Act and on the definition of para 2(f) of the EPF Scheme, stating that an excluded employee is only those employees who draw wages exceeding Rs. 6500/- per month.
Although I pointed out that in case the wages of an excluded employee drop below the Rs. 6500/- limit, if the employer has to pay contributions for such instances, then it will be an anomalous situation. But he was insistent on his interpretation. There would surely be some official circular from the PF organization; the readers would benefit if it is made available.
KK
From India, Bhopal
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I know a case where a contractor had deposited contributions on a proportionate basis but ultimately had to pay up at the rate of Rs. 780/- per month on the orders of RPFC. I had discussed the matter then with the RPFC, and he was stressing, as per Section 6 of the Act, mandating payment of PF contribution on the wages payable to each of the employees covered under the Act and on the definition of para 2(f) of the EPF Scheme, stating that an excluded employee is only those employees who draw wages exceeding Rs. 6500/- per month.
Although I pointed out that in case the wages of an excluded employee drop below the Rs. 6500/- limit, if the employer has to pay contributions for such instances, then it will be an anomalous situation. But he was insistent on his interpretation. There would surely be some official circular from the PF organization; the readers would benefit if it is made available.
KK
From India, Bhopal
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Dear K.K. Nair,
Mr. Varghese Mathew is right in this regard. Salary is meant for one month of attendance. Out of two employees with the same salary but different attendance, the earning amounts will be different. Accordingly, all statutory deductions related to salary will also be different. Otherwise, those who have less attendance will be more beneficial, at least in terms of PF. If you have experienced a slippage from any of the RPFCs, it should not be taken as a record against the general ethics and precedents.
Abbas P.S
From India, Bangalore
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Mr. Varghese Mathew is right in this regard. Salary is meant for one month of attendance. Out of two employees with the same salary but different attendance, the earning amounts will be different. Accordingly, all statutory deductions related to salary will also be different. Otherwise, those who have less attendance will be more beneficial, at least in terms of PF. If you have experienced a slippage from any of the RPFCs, it should not be taken as a record against the general ethics and precedents.
Abbas P.S
From India, Bangalore
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Dear all: Let not the vagaries of PF officials decide the matter, and let us get the official version which would surely be there. KK
From India, Bhopal
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From India, Bhopal
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