Dear Friends
Please help me regarding On PF issue, I am totally confuse, the problem is that one of the emp is earning 12000/- and the salary deduction s like as below
Basic: 6000/- (50% of salary) and remaining things are other
I is cut the PF of 12% on basic
But recently company had given the hike to him and now his salary is 16000/-
My problem is only those people who are below the 6500/-of the basic salary are eligible for the PF
But his basic is getting basic up to 8000/- on this case how to deduct the PF from his basic , Still he is continuing his service
If he is still eligible for PF kindly tell me the procedure
Please mail to this address
Warm Regards
Ram
NIHAR
HR
From India, Delhi
Please help me regarding On PF issue, I am totally confuse, the problem is that one of the emp is earning 12000/- and the salary deduction s like as below
Basic: 6000/- (50% of salary) and remaining things are other
I is cut the PF of 12% on basic
But recently company had given the hike to him and now his salary is 16000/-
My problem is only those people who are below the 6500/-of the basic salary are eligible for the PF
But his basic is getting basic up to 8000/- on this case how to deduct the PF from his basic , Still he is continuing his service
If he is still eligible for PF kindly tell me the procedure
Please mail to this address
Warm Regards
Ram
NIHAR
HR
From India, Delhi
PF will be always 12% of the basic pay.
You have to find out from which month onward he got the hike. After hike the PF deduction will be 12% of 8000 every month. And before hike you need to deduct 12% of 6000 for each month.
The equal amount should be paid by the employer as well.
Thanks
From India, Bangalore
4You have to find out from which month onward he got the hike. After hike the PF deduction will be 12% of 8000 every month. And before hike you need to deduct 12% of 6000 for each month.
The equal amount should be paid by the employer as well.
Thanks
From India, Bangalore
Hi Ramu u need to consult your PF Consultant because thier are certain monthly slab upto which the employee has to continue with pf contribution like if his salary increased in the month of april but then too he has to contribute to pr for the monthly slab from jan to June
regards
Ank
From India, Pune
regards
Ank
From India, Pune
Dear Ram,
The deduction of PF, if Basic transcends 6500/-, is at the discreation of Comapany. If you have policy to allow PF deduction of salary above 6500/-, it can be deducted. It is upto the choice. There is no legal boundation on that.
Hope it is convincing.
Regards,
Pankaj Sharma
From India, Chandigarh
The deduction of PF, if Basic transcends 6500/-, is at the discreation of Comapany. If you have policy to allow PF deduction of salary above 6500/-, it can be deducted. It is upto the choice. There is no legal boundation on that.
Hope it is convincing.
Regards,
Pankaj Sharma
From India, Chandigarh
hello,
i went through your case. As per the PF law for an employee running more than 6500/- as his basic salary is voluntary.
Now if he wants to continue in PF then your liability as a company is till 6500/- only.
That means if 12% amt of basic goes to PF then his PF may be diducted as 960/- (8000*12%) {He can contribute more than this or even lesser than this) but your liability as a company is limited till 780/- max (6500*12%)
If he chooses to get his PF to be diducted at 6000 only in that case both of you will be contributing the same i.e 720/- (6000*12%) ...
We can be in touch and share moreknowledge at
From India, Ahmadabad
i went through your case. As per the PF law for an employee running more than 6500/- as his basic salary is voluntary.
Now if he wants to continue in PF then your liability as a company is till 6500/- only.
That means if 12% amt of basic goes to PF then his PF may be diducted as 960/- (8000*12%) {He can contribute more than this or even lesser than this) but your liability as a company is limited till 780/- max (6500*12%)
If he chooses to get his PF to be diducted at 6000 only in that case both of you will be contributing the same i.e 720/- (6000*12%) ...
We can be in touch and share moreknowledge at
From India, Ahmadabad
Hi,
Rs. 6500 is the basic limit, upto which every employer contribute towards the Provident Fund from the both sides. Even if the employee crosses the initial limit of Rs. 6500, but deduction of PF will be continued till the employee is working with the same employer. Regarding this, one may increase the Basic but cannot reduce it.
Well, in your case, you may fix his basic as per the policy or continue in the old basic fixed. The hike may be added in other perquisite HRA and other allowances.
But as per your company policy you should have a basic of Rs. 8000 (50% of Rs. 16000) and upon this you should start deducting PF on the new Basic.
Yes, this employee is still eligible for the PF benefit despite his basic inceased to Rs. 8000 from Rs. 6000.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
Rs. 6500 is the basic limit, upto which every employer contribute towards the Provident Fund from the both sides. Even if the employee crosses the initial limit of Rs. 6500, but deduction of PF will be continued till the employee is working with the same employer. Regarding this, one may increase the Basic but cannot reduce it.
Well, in your case, you may fix his basic as per the policy or continue in the old basic fixed. The hike may be added in other perquisite HRA and other allowances.
But as per your company policy you should have a basic of Rs. 8000 (50% of Rs. 16000) and upon this you should start deducting PF on the new Basic.
Yes, this employee is still eligible for the PF benefit despite his basic inceased to Rs. 8000 from Rs. 6000.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
Dear All,
I saw your reply lets take this case.
The intiale Basic was Rs. 6000 /- so the Pf deduction is 12% of the basic.
Now the basic is Rs. 8000/- as per PF Act you will have do deduct the Pf there are two option.
I) As per Act deduct PF 12 % of Rs. 6500/-
II) You can deduct PF of 12% on Rs. 8000/- but will have to check with your management whether you want to restrict to statute or you will want deduct on actual basic. If yes on actual basic that 12% of Rs. 8000/- will be Rs. 960/- for employee to PF fund, in case of employer Rs. 541/- to pension fund as pension is only 8.33% on Rs. 6500/- rest amount in PF fund.
Thanks & Regards
Amal Shere
From India, Mumbai
I saw your reply lets take this case.
The intiale Basic was Rs. 6000 /- so the Pf deduction is 12% of the basic.
Now the basic is Rs. 8000/- as per PF Act you will have do deduct the Pf there are two option.
I) As per Act deduct PF 12 % of Rs. 6500/-
II) You can deduct PF of 12% on Rs. 8000/- but will have to check with your management whether you want to restrict to statute or you will want deduct on actual basic. If yes on actual basic that 12% of Rs. 8000/- will be Rs. 960/- for employee to PF fund, in case of employer Rs. 541/- to pension fund as pension is only 8.33% on Rs. 6500/- rest amount in PF fund.
Thanks & Regards
Amal Shere
From India, Mumbai
Dear,
As per PF Act, Pf deduction is compulsory upto salary 6500/- ( Basic+DA).
If any one joins the organization :
1. Salary below 6500/- PF deduction is compulsory & continue the service above the salary 6500/- his contribution is compulsory.
2. Salary above the 6500/- PF deduction is not compusory. If company & employee want to contribute the employee should have submit the application to Regional / Sub Regional Commissioner of PF of his area to get permission for pf deduction.
Thanks,
Amit Kumar Tawar
From India, Mundra
As per PF Act, Pf deduction is compulsory upto salary 6500/- ( Basic+DA).
If any one joins the organization :
1. Salary below 6500/- PF deduction is compulsory & continue the service above the salary 6500/- his contribution is compulsory.
2. Salary above the 6500/- PF deduction is not compusory. If company & employee want to contribute the employee should have submit the application to Regional / Sub Regional Commissioner of PF of his area to get permission for pf deduction.
Thanks,
Amit Kumar Tawar
From India, Mundra
Hi friends,
Please do remember that the the maximum limit of basic on which PF could be deducted is Rs.6500/- irrespective of the gross salary.
In the given case, the PF should have been deducted for Rs.6000/- if the basic is the same. If the Gross salary has been increased to Rs.18000/- and the basic to Rs.8000/- the limit of basic for the purpose of PF is Rs.6500/-
But in some compnies the PF is deducted on the actual basic even if it is more than Rs.6500/- with equal contribution. And some compnaies PF deducted on actual basic but the companies restricts its contribution to Rs.6500/-
On any situation the PF is deducted @ 12%.
Any clarification Sir??
Thansk and kind regards
Michael Nicholas
From India, Madras
Please do remember that the the maximum limit of basic on which PF could be deducted is Rs.6500/- irrespective of the gross salary.
In the given case, the PF should have been deducted for Rs.6000/- if the basic is the same. If the Gross salary has been increased to Rs.18000/- and the basic to Rs.8000/- the limit of basic for the purpose of PF is Rs.6500/-
But in some compnies the PF is deducted on the actual basic even if it is more than Rs.6500/- with equal contribution. And some compnaies PF deducted on actual basic but the companies restricts its contribution to Rs.6500/-
On any situation the PF is deducted @ 12%.
Any clarification Sir??
Thansk and kind regards
Michael Nicholas
From India, Madras
This is the right thing what Kamal has said, the contribution of employee is always 12% of his/her Basic+D.A, this amount is again contributed by the employer, in the in case of a basic hike the deduction will be made on the hiked basic+D.A that is 12% on the same.
We have to calculate on the basis of his basic salary hike from the month which has taken into effect.
Say Till August'2007 his basic was Rs.8000/- i.e P.F from employee is 960/-
Now from Sep'2007 if his basic is 16,000/- so P.F deduction will be Rs.1920/-
Take reference from the salary slip.
Regards,
Somesh
We have to calculate on the basis of his basic salary hike from the month which has taken into effect.
Say Till August'2007 his basic was Rs.8000/- i.e P.F from employee is 960/-
Now from Sep'2007 if his basic is 16,000/- so P.F deduction will be Rs.1920/-
Take reference from the salary slip.
Regards,
Somesh
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