Dear experts,
Please guide for the following queries:
1. We planned to implement PF contributions for all employees, including those with a basic salary exceeding 6500 in our private organization. Kindly clarify if the employer's contribution is mandatory or if both contributions can be deducted from the employee's salary.
2. If possible, provide details on the deduction slab. Should it be limited to 6500 or the full basic amount?
3. Also, advise if this change can be included in the company policy.
Regards,
E. Raja
From India, Chennai
Please guide for the following queries:
1. We planned to implement PF contributions for all employees, including those with a basic salary exceeding 6500 in our private organization. Kindly clarify if the employer's contribution is mandatory or if both contributions can be deducted from the employee's salary.
2. If possible, provide details on the deduction slab. Should it be limited to 6500 or the full basic amount?
3. Also, advise if this change can be included in the company policy.
Regards,
E. Raja
From India, Chennai
Mr Raja Yes.It is possible.Employer also has to contribute.Employer cannot deduct his contribution from employee’s salary. Varghese Mathew 09961266966
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Further to what Mr. Varghese Mathew has replied, please check the revised cap of PF
From India, Ahmadabad
From India, Ahmadabad
Dear Hi, Please follow the provisions of the EPF(and Miscellaneous Provisions) Act in toto. S.K.Johri
From India, Delhi
From India, Delhi
Dear Raja,
Please see the attached notes for relevant information.
1) & 2) As you know, 12% of Basic + DA will have to be deducted from the employee's salary, with a maximum limit of Rs. 6500 (for those who choose not to limit it to Rs. 6500 but opt for higher amounts like 10,000, 15,000, etc., you can deduct at 12%, but it is compulsory up to 6500). Employer's share is also limited to 6500. Employers are not required to contribute more when the salary exceeds 6500. For example, if the salary is 10,000, the employer only needs to contribute 12% of 6500. However, if the employer wishes, they can contribute 12% of 10,000, but it is not mandatory. In any case, the employer's contribution should not be deducted from the employee's salary. Doing so is illegal and punishable.
3) The policy can be included in the company policy, but ensure that it complies with the minimum requirements stated in the EPF Act. The employer's policy can provide additional or better benefits.
Best Regards,
E. Raja
From India, Bangalore
Please see the attached notes for relevant information.
1) & 2) As you know, 12% of Basic + DA will have to be deducted from the employee's salary, with a maximum limit of Rs. 6500 (for those who choose not to limit it to Rs. 6500 but opt for higher amounts like 10,000, 15,000, etc., you can deduct at 12%, but it is compulsory up to 6500). Employer's share is also limited to 6500. Employers are not required to contribute more when the salary exceeds 6500. For example, if the salary is 10,000, the employer only needs to contribute 12% of 6500. However, if the employer wishes, they can contribute 12% of 10,000, but it is not mandatory. In any case, the employer's contribution should not be deducted from the employee's salary. Doing so is illegal and punishable.
3) The policy can be included in the company policy, but ensure that it complies with the minimum requirements stated in the EPF Act. The employer's policy can provide additional or better benefits.
Best Regards,
E. Raja
From India, Bangalore
Dear Raja,
As per PF Miscellaneous Act, 12% of (Basic + DA) will have to be recovered from the salary of employees, treating a maximum salary (basic + DA) as Rs. 15,000/-. For those who are willing not to limit it up to Rs. 15,000/-, they can deduct @ 12% but there is no compulsion. However, up to Rs. 15,000/- it is compulsory. The employer's share is also limited only up to Rs. 15,000/-. The employer does not need to contribute more when the salary is above Rs. 15,000/-. For example, if the salary is Rs. 20,000, the employer has to contribute only @ 12% on Rs. 15,000/- (New Circular dated 14/07/2014). Here also, if the employer is willing, they can contribute @ 12% on Rs. 20,000/- but there is no compulsion.
With regards,
Balamurugan L
9488829216
Pondicherry
From India, Kochi
As per PF Miscellaneous Act, 12% of (Basic + DA) will have to be recovered from the salary of employees, treating a maximum salary (basic + DA) as Rs. 15,000/-. For those who are willing not to limit it up to Rs. 15,000/-, they can deduct @ 12% but there is no compulsion. However, up to Rs. 15,000/- it is compulsory. The employer's share is also limited only up to Rs. 15,000/-. The employer does not need to contribute more when the salary is above Rs. 15,000/-. For example, if the salary is Rs. 20,000, the employer has to contribute only @ 12% on Rs. 15,000/- (New Circular dated 14/07/2014). Here also, if the employer is willing, they can contribute @ 12% on Rs. 20,000/- but there is no compulsion.
With regards,
Balamurugan L
9488829216
Pondicherry
From India, Kochi
Dear friends,
This is a news item:
"Finance Bill 2014 Final was presented by Finance Minister Shri Arun Jaitley on 10th July 2014. The bill got approval of Lok Sabha on 25th July 2014 with some amendments. Now Rajya Sabha has cleared the Finance Bill 2014 on 31st July 2014. The Finance Bill will come into effect after the President approves it. So now the bill will go to the Honorable President for his approval."
- See more at: [Rajya Sabha clears Finance Bill 2014](http://taxguru.in/income-tax/rajya-sabha-clears-finance-bill-2014.html?utm_source=feedburner&utm_medium =email&utm_campaign=Feed%3A+articlenoticej udiciarynews+%28TaxGuru.in+-+Corporate+Laws+and+Tax+Updates%29#sthash.OcS0GvTx .dpuf)
Let us await.
From India, Bangalore
This is a news item:
"Finance Bill 2014 Final was presented by Finance Minister Shri Arun Jaitley on 10th July 2014. The bill got approval of Lok Sabha on 25th July 2014 with some amendments. Now Rajya Sabha has cleared the Finance Bill 2014 on 31st July 2014. The Finance Bill will come into effect after the President approves it. So now the bill will go to the Honorable President for his approval."
- See more at: [Rajya Sabha clears Finance Bill 2014](http://taxguru.in/income-tax/rajya-sabha-clears-finance-bill-2014.html?utm_source=feedburner&utm_medium =email&utm_campaign=Feed%3A+articlenoticej udiciarynews+%28TaxGuru.in+-+Corporate+Laws+and+Tax+Updates%29#sthash.OcS0GvTx .dpuf)
Let us await.
From India, Bangalore
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