Dear All,
I hope you have all read the PF circular regarding the increase in PF eligibility slab from 6500/- to 15000/-. I would like you to please share your views on the changes that will now affect employee and employer contributions without altering the current CTC for the employees.
I am looking forward to receiving valuable inputs at the earliest since we need to implement these changes starting from the September 2014 salaries.
Thank you,
Chakradhar Reddy.
From India, Hyderabad
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3I hope you have all read the PF circular regarding the increase in PF eligibility slab from 6500/- to 15000/-. I would like you to please share your views on the changes that will now affect employee and employer contributions without altering the current CTC for the employees.
I am looking forward to receiving valuable inputs at the earliest since we need to implement these changes starting from the September 2014 salaries.
Thank you,
Chakradhar Reddy.
From India, Hyderabad
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Hi,
Please provide me with one CTC sample so that I can bifurcate accordingly.
1. Earlier, your organization did not have the PF Code. If not, then we can design without any changes in CTC, but changes will occur in the Net Salary.
2. If you were contributing to PF earlier, there is no need to change the CTC; continue as is.
3. Only make changes for those whose basic is less than 15000, and start their remittance from the 1st of September.
From India, Mumbai
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Please provide me with one CTC sample so that I can bifurcate accordingly.
1. Earlier, your organization did not have the PF Code. If not, then we can design without any changes in CTC, but changes will occur in the Net Salary.
2. If you were contributing to PF earlier, there is no need to change the CTC; continue as is.
3. Only make changes for those whose basic is less than 15000, and start their remittance from the 1st of September.
From India, Mumbai
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Hi,
The definition for ‘Basic Wages’ given by the RPFC, Chennai regional office is attached for your reference please.
Kindly go through the same and re-work your salary component if required.
Since the EPF wage ceiling has been enhanced from Rs. 6500/- to Rs. 15000/- with effect from 1st September’ 2014, kindly note that whatever the salary you are going to shown, except in the below mentioned components (categories), will attract PF, for the limit up to Rs. 15000/-.
• House Rent Allowance
• Dearness Allowance
• Case value of any food concession
• Overtime allowance
• Bonus
• Commission
“Section 2(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include
i. the cash value of any food concession;
ii. any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
iii. any presents made by the employer;”
Hence, we would suggest that, for employees getting less than Rs. 15000/- as gross wages, please avoid showing components in the heading like, ‘Travel Allowance, Special Allowance’ etc., to them, until get the clarity on components from the EPF department.
Please write to us in case you are looking for any professional support in this regard.
From India, Chennai
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The definition for ‘Basic Wages’ given by the RPFC, Chennai regional office is attached for your reference please.
Kindly go through the same and re-work your salary component if required.
Since the EPF wage ceiling has been enhanced from Rs. 6500/- to Rs. 15000/- with effect from 1st September’ 2014, kindly note that whatever the salary you are going to shown, except in the below mentioned components (categories), will attract PF, for the limit up to Rs. 15000/-.
• House Rent Allowance
• Dearness Allowance
• Case value of any food concession
• Overtime allowance
• Bonus
• Commission
“Section 2(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include
i. the cash value of any food concession;
ii. any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
iii. any presents made by the employer;”
Hence, we would suggest that, for employees getting less than Rs. 15000/- as gross wages, please avoid showing components in the heading like, ‘Travel Allowance, Special Allowance’ etc., to them, until get the clarity on components from the EPF department.
Please write to us in case you are looking for any professional support in this regard.
From India, Chennai
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EPF Now Changed on 1st Sep 2014
Per Month Per Month
Salary: Rs. 12,000.00 Rs. 15,000.00
Employee: 12% Rs. 1,440.00 Rs. 1,800.00
Employer: 13.61% Rs. 1,633.20 Rs. 2,041.50
Total 12% + 13.61%: Rs. 3,073.20 Rs. 3,841.50
Employer to Pay Based Based
This A/c No: Rs. 12,000 Rs. 15,000
Acc. No: 10 8.33% Rs. 999.60 Rs. 1,249.50
Acc. No: 1 3.67% Rs. 440.40 Rs. 550.50
Acc. No: 21 0.50% Rs. 60.00 Rs. 75.00
Acc. No: 2 1.10% Rs. 132.00 Rs. 165.00
Acc. No: 22 0.01% Rs. 1.20 Rs. 1.50
Total 13.61% Rs. 1,633.20 Rs. 2,041.50
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I have corrected the spelling, grammar, and formatting in the provided text to ensure clarity and accuracy. Let me know if you need any further assistance.
From India, Chennai
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Per Month Per Month
Salary: Rs. 12,000.00 Rs. 15,000.00
Employee: 12% Rs. 1,440.00 Rs. 1,800.00
Employer: 13.61% Rs. 1,633.20 Rs. 2,041.50
Total 12% + 13.61%: Rs. 3,073.20 Rs. 3,841.50
Employer to Pay Based Based
This A/c No: Rs. 12,000 Rs. 15,000
Acc. No: 10 8.33% Rs. 999.60 Rs. 1,249.50
Acc. No: 1 3.67% Rs. 440.40 Rs. 550.50
Acc. No: 21 0.50% Rs. 60.00 Rs. 75.00
Acc. No: 2 1.10% Rs. 132.00 Rs. 165.00
Acc. No: 22 0.01% Rs. 1.20 Rs. 1.50
Total 13.61% Rs. 1,633.20 Rs. 2,041.50
---
I have corrected the spelling, grammar, and formatting in the provided text to ensure clarity and accuracy. Let me know if you need any further assistance.
From India, Chennai
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M/s Pragnaa HR
It is not correct to say that Dearness Allowance is not included in the wage ceiling of Rs 15,000/-. Please refer to the meaning of 'pay' in para 2(f) and also see para 29 of the EPF scheme, which includes DA for wages liable for contribution. Contribution is payable for DA as well if the wages, including DA, are up to or less than Rs 15,000/- per month.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
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It is not correct to say that Dearness Allowance is not included in the wage ceiling of Rs 15,000/-. Please refer to the meaning of 'pay' in para 2(f) and also see para 29 of the EPF scheme, which includes DA for wages liable for contribution. Contribution is payable for DA as well if the wages, including DA, are up to or less than Rs 15,000/- per month.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
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Dear Sir,
As per the following details, please let me know on what amount PF will be deducted:
Salary: $15050
HRA: $2000
Conveyance: $800
Special Allowance: $2000
2nd Salary: $7000
Conveyance: $800
Please calculate the employee and employer shares.
Regards,
VK.SOOD
From India, Ludhiana
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As per the following details, please let me know on what amount PF will be deducted:
Salary: $15050
HRA: $2000
Conveyance: $800
Special Allowance: $2000
2nd Salary: $7000
Conveyance: $800
Please calculate the employee and employer shares.
Regards,
VK.SOOD
From India, Ludhiana
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Dear sir,
Earlier, we were paying PF of each employee based on 6500/-. Now, how can we pay the PF on Basic + DA or salary for the month? If it's based on Basic + DA, what is the percentage taken - 60% or 50%?
Regards,
Srinivas
From India, Machilipatnam
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Earlier, we were paying PF of each employee based on 6500/-. Now, how can we pay the PF on Basic + DA or salary for the month? If it's based on Basic + DA, what is the percentage taken - 60% or 50%?
Regards,
Srinivas
From India, Machilipatnam
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Mr Yadav You cannot reduce basic now as it is against sec 12 of EPF Act. Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Clarification about Contribution
After revision in wage ceiling from Rs.6500 to Rs.15000 w.e.f. 1.9.2014 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.15000 per month towards Employees’ Pension Scheme. The employer’s share in the Pension Scheme will be Rs.1250 w.e.f. 1.9.2014 (maximum).
Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is required to be paid upto a maximum limit of Rs.15000.
The employer also will pay administrative charges @ 0.01% on maximum limit of Rs.15000 whereas an exempted establishment will pay inspection charges @ 0.05% on the total wages paid.
Notes:
Wages upto a maximum of Rs.15000 towards wage (basic+DA).
Since an excluded employee i.e. drawing wages more than Rs.15000 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.20,000 per month, his share towards provident fund contribution will be Rs.2400 e.g. 12% and employer’s share towards provident fund contributioin will be Rs.550 and Rs.1250 towards Employees’ Pension Fund.
From India, Jamshedpur
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After revision in wage ceiling from Rs.6500 to Rs.15000 w.e.f. 1.9.2014 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.15000 per month towards Employees’ Pension Scheme. The employer’s share in the Pension Scheme will be Rs.1250 w.e.f. 1.9.2014 (maximum).
Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is required to be paid upto a maximum limit of Rs.15000.
The employer also will pay administrative charges @ 0.01% on maximum limit of Rs.15000 whereas an exempted establishment will pay inspection charges @ 0.05% on the total wages paid.
Notes:
Wages upto a maximum of Rs.15000 towards wage (basic+DA).
Since an excluded employee i.e. drawing wages more than Rs.15000 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.20,000 per month, his share towards provident fund contribution will be Rs.2400 e.g. 12% and employer’s share towards provident fund contributioin will be Rs.550 and Rs.1250 towards Employees’ Pension Fund.
From India, Jamshedpur
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Dear Sirs,
In addition to the clarification on contribution towards Pension Scheme, EDLI, wish to add the following rates of contribution.
SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S
Provident Fund Scheme 12% 3.67% NIL
EDLI Scheme NIL 0.5 NIL
Pension Scheme NIL 8.33% 1.16% (on wages up to max 15000)
EPF Admin Charges NIL 1.1% NIL
EDLI Admn. Charges NIL 0.01% NIL
Regards
T M Rao
From India, Jamshedpur
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In addition to the clarification on contribution towards Pension Scheme, EDLI, wish to add the following rates of contribution.
SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S
Provident Fund Scheme 12% 3.67% NIL
EDLI Scheme NIL 0.5 NIL
Pension Scheme NIL 8.33% 1.16% (on wages up to max 15000)
EPF Admin Charges NIL 1.1% NIL
EDLI Admn. Charges NIL 0.01% NIL
Regards
T M Rao
From India, Jamshedpur
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Dear Sirs, Enclosed herewith a summary sheet on EPF Scheme. Regards T M Rao
From India, Jamshedpur
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From India, Jamshedpur
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Q1:- How many hours a person can put on an overtime in a month? At what rate the overtime needs to be paid and on what salary components?
From India, Gurgaon
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From India, Gurgaon
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Dear friends, Can any one pls confirm the pf insurance increase from 1.5 lakhs to 3.5lakhs.effective date. Since one of my associate had passed away on August 14. Thanks in advance.
From India, Madras
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From India, Madras
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I am new to this forum. I want to know what are the new rules government has implemented on PF and what is the process of withdrawal...
From India, Noida
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From India, Noida
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Dear Experts, If the Employer has not accepted to revise the Employee salary after PF ceiling limit enhancement. The home taking salary will be less. Then what is remedy ? Regards, PBS KUMAR
From India, Kakinada
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From India, Kakinada
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Dear Sarita,
Below are the changes made regarding the Employee Provident Fund:
1. The minimum threshold has been raised to Rs. 15,000 from Rs. 6,500. Current members who are limiting their monthly contributions to Provident Funds to a minimum salary range of Rs. 6,500 (Rs. 780) will now have to contribute at least to a salary range of Rs. 15,000 (Rs. 1800).
2. It is now mandatory for all employees with a salary up to Rs. 15,000 to maintain PF accounts.
3. 12% of PF wages (BP+DA) goes as an employee contribution to the Employee Provident fund account.
4. Employer Contribution (12%):
- 8.33% (of BP+DA) to Employee pension scheme
- Balance i.e. 3.67% goes to the Employee Provident fund
5. Apart from the PF contribution, the Employer has to bear Admin charges which include:
a) 1.10% of basic (Administration Charges)
b) 0.5% of basic (Employee Developed Linked Insurance Charges)
c) 1.01% of basic (Employee Developed Linked Insurance Charges)
6. The minimum contribution for employees with a salary up to Rs. 15,000 has increased for both employee and employer. (i.e. 12% of 15,000 = 1800)
7. Employees who became members in PF post 1st September 2014 and having PF wages (BP+DA) greater than Rs. 15,000 cannot become a member in the pension scheme. Such employees' whole employer contribution (12%) would be absorbed into the PF itself.
8. The new pension scheme is effective from September 1, 2014.
Hope this information helps.
Best regards,
Vineeth
From India, Ernakulam
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Below are the changes made regarding the Employee Provident Fund:
1. The minimum threshold has been raised to Rs. 15,000 from Rs. 6,500. Current members who are limiting their monthly contributions to Provident Funds to a minimum salary range of Rs. 6,500 (Rs. 780) will now have to contribute at least to a salary range of Rs. 15,000 (Rs. 1800).
2. It is now mandatory for all employees with a salary up to Rs. 15,000 to maintain PF accounts.
3. 12% of PF wages (BP+DA) goes as an employee contribution to the Employee Provident fund account.
4. Employer Contribution (12%):
- 8.33% (of BP+DA) to Employee pension scheme
- Balance i.e. 3.67% goes to the Employee Provident fund
5. Apart from the PF contribution, the Employer has to bear Admin charges which include:
a) 1.10% of basic (Administration Charges)
b) 0.5% of basic (Employee Developed Linked Insurance Charges)
c) 1.01% of basic (Employee Developed Linked Insurance Charges)
6. The minimum contribution for employees with a salary up to Rs. 15,000 has increased for both employee and employer. (i.e. 12% of 15,000 = 1800)
7. Employees who became members in PF post 1st September 2014 and having PF wages (BP+DA) greater than Rs. 15,000 cannot become a member in the pension scheme. Such employees' whole employer contribution (12%) would be absorbed into the PF itself.
8. The new pension scheme is effective from September 1, 2014.
Hope this information helps.
Best regards,
Vineeth
From India, Ernakulam
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Hi Vineeth,
Thank you for your reply; it was very helpful. I am a little confused about the amounts of 6500 and 15000. Are these figures our basic salary within our Cost to Company (CTC), or are they our total salary amounts per month? As far as I know, the Provident Fund (PF) deduction is typically 12% of our basic salary every month.
I appreciate any clarification you can provide on this matter.
Thank you.
From India, Noida
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Thank you for your reply; it was very helpful. I am a little confused about the amounts of 6500 and 15000. Are these figures our basic salary within our Cost to Company (CTC), or are they our total salary amounts per month? As far as I know, the Provident Fund (PF) deduction is typically 12% of our basic salary every month.
I appreciate any clarification you can provide on this matter.
Thank you.
From India, Noida
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Whats is the process of PF withdrawl after 1 September 2014
From India, Noida
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From India, Noida
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Sarita,
It's not the CTC. It's actually the Basic+DA for some companies, while others just limit it to 'Basic Pay' alone. In fact, it depends on your company policies. That means if there is no payment to me from the company under the salary head 'DA,' then only the basic pay is considered for provident fund. However, the withdrawal policies for both PF and pension are kept the same as far as I know.
Also, kindly refer to the various court verdicts that have been issued regarding the same (BP+DA case conflicts between employees and companies).
Hope this serves.
From India, Ernakulam
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It's not the CTC. It's actually the Basic+DA for some companies, while others just limit it to 'Basic Pay' alone. In fact, it depends on your company policies. That means if there is no payment to me from the company under the salary head 'DA,' then only the basic pay is considered for provident fund. However, the withdrawal policies for both PF and pension are kept the same as far as I know.
Also, kindly refer to the various court verdicts that have been issued regarding the same (BP+DA case conflicts between employees and companies).
Hope this serves.
From India, Ernakulam
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Dear All my Seniors new pf ceiling change but new ceiling is 15000/-. now no effect. in case employee eps amount adopt above 15000/- then 1.16 % extra charge applicable Regards Sonu Kumar 7728894270
From India, Jaipur
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From India, Jaipur
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Dear Seniors, What will the PF contribution of employee whose gross salary is Rs 10,000/ Basic 7,700, HRA 3850, Conv 800. Pls reply......
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Hi All,
Please let me know, my salary is 15000 and basic is Rs. 6000/-, they used to deduct 780/- for PF contribution, but in September, they deducted 1800/-. Is it correct? As I understand, it will not be applicable if the salary is less than Rs. 6000/. If a person leaves his/her company in 6 months, will he/she still get the PF amount?
From India, Bangalore
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Please let me know, my salary is 15000 and basic is Rs. 6000/-, they used to deduct 780/- for PF contribution, but in September, they deducted 1800/-. Is it correct? As I understand, it will not be applicable if the salary is less than Rs. 6000/. If a person leaves his/her company in 6 months, will he/she still get the PF amount?
From India, Bangalore
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in version 6.0 remitance of pension fund is limited to 541 it is correct. Harshabi
From India, Pune
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From India, Pune
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