Please clarify about the ceiling limit of PF. If the basic is 30,000, then we have to consider EPF wages as 15,000. The deductions will be as follows:
- 8.33% of 15,000 = 1,249.5
- 3.67% of 15,000 = 550
- Additional charges include 1.10% admin charges, 0.5% EDLI, and 0.01% inspection charges.
If the salary is 5,400, then the deduction will be based on that amount. I want to understand the PF contribution when the salary is above 15,000 and also when the salary is below 6,500. What should be done in such cases?
From India, Jabalpur
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1- 8.33% of 15,000 = 1,249.5
- 3.67% of 15,000 = 550
- Additional charges include 1.10% admin charges, 0.5% EDLI, and 0.01% inspection charges.
If the salary is 5,400, then the deduction will be based on that amount. I want to understand the PF contribution when the salary is above 15,000 and also when the salary is below 6,500. What should be done in such cases?
From India, Jabalpur
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If the basic salary is 15,000/- or above, then you can restrict EPF contributions to the ceiling limit of 15,000/- only. If the employee is already a member of EPF, then you can contribute 8.33% of 15,000/- towards EPS and 3.67% on 15,000/- towards EPF.
For any new employee who does not have EPF in previous organizations or is a fresher, if their basic salary is above 15,000/-, then there is no diversion to EPS; the entire 12% of employer contribution shall be accounted towards EPF only. There is no EPS for those employees.
There is a small change in admin charges. Admin charges are revised to 0.85%, 0.5% EDLI, and 0.01% EDLI Admin charges remain the same.
If the basic salary is 5,400/-, then EPF is contributed on 5,400/- only. The calculation remains the same for both cases.
For any clarifications, you can reach me.
Regards
From India, Bangalore
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For any new employee who does not have EPF in previous organizations or is a fresher, if their basic salary is above 15,000/-, then there is no diversion to EPS; the entire 12% of employer contribution shall be accounted towards EPF only. There is no EPS for those employees.
There is a small change in admin charges. Admin charges are revised to 0.85%, 0.5% EDLI, and 0.01% EDLI Admin charges remain the same.
If the basic salary is 5,400/-, then EPF is contributed on 5,400/- only. The calculation remains the same for both cases.
For any clarifications, you can reach me.
Regards
From India, Bangalore
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thanks alot sir, 5400/- basic is also considered, then why ceiling limit is 6500-15000, i thought if basic+DA < 6500 then such people will not contribute to PF complaince
From India, Jabalpur
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From India, Jabalpur
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Statutory Compliance of a Industrial or Commercial Unit.xls
Statutory-compl iance.pdf
Statutory Compliance.zip