we are covered under F p F scheme and are regular in all compliance; I want following clarifications
A) We have two type of employees
One Regular employess and we contribute E P F as Employeer Share @ 12% of Full wages erraspective to maximum celkling of wages i.e Rs. 6500. ( Say if the wages of regular employees is above Rs 6500 means if 30000 we contribute 3600 as employees share for our regular employees
Second : Contractors workes . In this cas are we bound ( AS A PRINCIPAL EMPLOYEER) to contribute E P F contribution above Rs 6500 ( Maximum Celling) Or can we contribute up to Rs 6500 only. Is there any law which force employeer to contribute equil to other employess
b) We re emplopyees our retired employhes after the age of superannuation. In this case are we bound to contribute E P F to the employees even after the age of 58 year or 60 year of superannuation
From India, Chandigarh
A) We have two type of employees
One Regular employess and we contribute E P F as Employeer Share @ 12% of Full wages erraspective to maximum celkling of wages i.e Rs. 6500. ( Say if the wages of regular employees is above Rs 6500 means if 30000 we contribute 3600 as employees share for our regular employees
Second : Contractors workes . In this cas are we bound ( AS A PRINCIPAL EMPLOYEER) to contribute E P F contribution above Rs 6500 ( Maximum Celling) Or can we contribute up to Rs 6500 only. Is there any law which force employeer to contribute equil to other employess
b) We re emplopyees our retired employhes after the age of superannuation. In this case are we bound to contribute E P F to the employees even after the age of 58 year or 60 year of superannuation
From India, Chandigarh
Hi,
As per your query, in PF
PF is applicable all the employees like Regular / Contract
PF will be deducted 12% From the BASIC salary for Employees and Employer
This is totaly Retairement Benifit Plan
From India, Bangalore
2As per your query, in PF
PF is applicable all the employees like Regular / Contract
PF will be deducted 12% From the BASIC salary for Employees and Employer
This is totaly Retairement Benifit Plan
From India, Bangalore
In respect of employees engaged through contractor, you can restrict your (employer's) share to 12% of Rs 6500 even though for regular employees your practice is to contribute without considering any ceiling.
If the superannuated employees are getting Provident Fund Pension, you can exclude them from PF contribution. Otherwise, you have to contribute PF and the entire employer's share of 12% shall be remitted in the Provident Fund account rather than splitting it as 8.33% in Pension Fund and the rest, ie, 3.67% in Provident Fund.
Regards,
Madhu.T.K
From India, Kannur
If the superannuated employees are getting Provident Fund Pension, you can exclude them from PF contribution. Otherwise, you have to contribute PF and the entire employer's share of 12% shall be remitted in the Provident Fund account rather than splitting it as 8.33% in Pension Fund and the rest, ie, 3.67% in Provident Fund.
Regards,
Madhu.T.K
From India, Kannur
sramsoni
- PF is applicable to all the employees, irrespective of permanent or contract
- it is restricted to 12% on Rs. 6500/- that means if it is less than 6500, the pf to be cut for that amount, if it is more than 6500, then restrict it for only 6500/
- but practically speaking this is social security benefit, so normally the pf is given on entire Basic plus DA
- the PF portion consists of two parts one PF8.33% and other Pension fund (3.67%).
- in case of all employees who have not completed the gae of superannuation, both the above benefits shall apply, but for those who have been taken on contract and retired and those who are above the age of superannuation, will be given only PF portion is 12%. There is no law PF can be extended to those persons, but as a good gesture this benefits is also extended in some companies.
- but in all cases the management portion of 12% is must.
hope i hv clarified
dr nagaraj
From India, Bangalore
- PF is applicable to all the employees, irrespective of permanent or contract
- it is restricted to 12% on Rs. 6500/- that means if it is less than 6500, the pf to be cut for that amount, if it is more than 6500, then restrict it for only 6500/
- but practically speaking this is social security benefit, so normally the pf is given on entire Basic plus DA
- the PF portion consists of two parts one PF8.33% and other Pension fund (3.67%).
- in case of all employees who have not completed the gae of superannuation, both the above benefits shall apply, but for those who have been taken on contract and retired and those who are above the age of superannuation, will be given only PF portion is 12%. There is no law PF can be extended to those persons, but as a good gesture this benefits is also extended in some companies.
- but in all cases the management portion of 12% is must.
hope i hv clarified
dr nagaraj
From India, Bangalore
- I feel you are already following advise given by MR. Madhu T K. He has given right opinion based on real knowledge and experience.
- Simply ignore views of others, they do not deserve any attention since their views are based on 'no kowledge' or 'half knowledge'.
From India, Pune
Hi Gurus,
I have a related question here. I was also an employee in a company where, our basic was higher than 6500 per month. Both employer and we (employees) would contribute PF (and related FPF) contributions on full basic.
What proportion of the PF deduction would be allocated to FPF? Will it be 1.67% or 3.67% as mentioned here in one of the contributions?
One more related question - Is there a ceiling on amount of contribution towards FPF? At an earlier point (I believe) the ceiling was some Rs 429/- per month. Is this correct? I did a rough calculation and the Rs 429 works out to be 1.67% of some 25600 Rs as basic.
If these calculations are correct, then under new FPF calculation rules the employee should be getting their pension calculations based on full basic salary - when the PF and FPF deductions are based on full basic salary.
Can some one help to clear this?
Thanks and Regards,
Shashank
From India, Pune
I have a related question here. I was also an employee in a company where, our basic was higher than 6500 per month. Both employer and we (employees) would contribute PF (and related FPF) contributions on full basic.
What proportion of the PF deduction would be allocated to FPF? Will it be 1.67% or 3.67% as mentioned here in one of the contributions?
One more related question - Is there a ceiling on amount of contribution towards FPF? At an earlier point (I believe) the ceiling was some Rs 429/- per month. Is this correct? I did a rough calculation and the Rs 429 works out to be 1.67% of some 25600 Rs as basic.
If these calculations are correct, then under new FPF calculation rules the employee should be getting their pension calculations based on full basic salary - when the PF and FPF deductions are based on full basic salary.
Can some one help to clear this?
Thanks and Regards,
Shashank
From India, Pune
The Family Pension Scheme has ceased to exist with the introduction of Provident Fund Pension Scheme, in 1995. In the past when the contribution was 10%, the FPF contribution was 1.67%.
There is no compulsion that the contribution should be restricted to Rs 6500 but if the company is willing to contribute on a higher amount, say, gross or total of basic and DA, it can do so.
Regards,
Madhu.T.K
From India, Kannur
There is no compulsion that the contribution should be restricted to Rs 6500 but if the company is willing to contribute on a higher amount, say, gross or total of basic and DA, it can do so.
Regards,
Madhu.T.K
From India, Kannur
If any person sign on an affer letter of a recruiter is there any law that the said recruiter can claim any amount if the said person does not join onthe joining date.here the recruiter mentioned in that offer letter that appointment letter shall be given after 15 days from joinig datehOW A PERSON TAKES THIS RISK IF THE RECRUITER SHALL OUT THE PERSON BEFORE 15 DAYS AS PER THE OFFER LETTER.
From India, Calcutta
From India, Calcutta
I disagree with the view of Mr Nagraj when he says "it is restricted to 12% on Rs. 6500/- that means if it is less than 6500, the pf to be cut for that amount, if it is more than 6500, then restrict it for only 6500/".
The PF Act very clearly says that the Employer and the Employee will contribute a Matching sum (12% of the Basic+DA) - irrespective of the amount. Please see the attachement.
I agree with T K Madhu.
Rajusiachen
From India, Coimbatore
The PF Act very clearly says that the Employer and the Employee will contribute a Matching sum (12% of the Basic+DA) - irrespective of the amount. Please see the attachement.
I agree with T K Madhu.
Rajusiachen
From India, Coimbatore
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