It has been widely observed that Companies put Rs. 6500/- basic salary as the upper limit for giving PF.
My question is can we put Rs. 10,000 OR any amount over 6500 but less than actual basic salary as the cieling for PF (for people whose salary is above 6500/-)?
Is it Legal?
rolly
From India, New Delhi
8My question is can we put Rs. 10,000 OR any amount over 6500 but less than actual basic salary as the cieling for PF (for people whose salary is above 6500/-)?
Is it Legal?
rolly
From India, New Delhi
Hi Rolly,
Can you clearify your requirements as not able to understand.
As far as PF ceiling is concerned limit of basic is upto 6500 rupees. If any person's basic is more than that i.e more than 6500 then the PF will be deducted only upto 6500 only.
Whatever basic it is 7,8,9..... or so on thousand, but the pf can only be deducted upto a ceiling of 6500 only.
Regards,
Amit Seth.
From India, Ahmadabad
Can you clearify your requirements as not able to understand.
As far as PF ceiling is concerned limit of basic is upto 6500 rupees. If any person's basic is more than that i.e more than 6500 then the PF will be deducted only upto 6500 only.
Whatever basic it is 7,8,9..... or so on thousand, but the pf can only be deducted upto a ceiling of 6500 only.
Regards,
Amit Seth.
From India, Ahmadabad
Hi amit...
thanx fr the reply. You are very correct that the cieling is 6500/-. Further to add to your point-
We can either pay PF on 6500/- or on the actual basic salary (even if it is greater than 6500/-).
My question is suppose someone is earning 20,000 as basic. then can we pay him PF on 10,000 basic.
From India, New Delhi
thanx fr the reply. You are very correct that the cieling is 6500/-. Further to add to your point-
We can either pay PF on 6500/- or on the actual basic salary (even if it is greater than 6500/-).
My question is suppose someone is earning 20,000 as basic. then can we pay him PF on 10,000 basic.
From India, New Delhi
Hi You can deduct PF on actual basic and pay an equal amount into the employees PF Account. It is legal. Hope it helps. Regards Richa
From India, Pune
From India, Pune
Dear Rolly & Richa,
Wge limit under EPF act to cover an employee is Rs.6500/ per month.Any employee drawing wages more than above will be termed as excluded employee provided he is not already a member of PF.if he is already a member of PF then his PF deduction will be on 6500/ only.
Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:
* Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.
* Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.
* Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.
* Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.
Hope it will help a lot to understand the situation.
Regards,
Amit Seth.
From India, Ahmadabad
Wge limit under EPF act to cover an employee is Rs.6500/ per month.Any employee drawing wages more than above will be termed as excluded employee provided he is not already a member of PF.if he is already a member of PF then his PF deduction will be on 6500/ only.
Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:
* Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.
* Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.
* Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.
* Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.
Hope it will help a lot to understand the situation.
Regards,
Amit Seth.
From India, Ahmadabad
Dear Amit and Richa,
Your explanations are welcome however they do not include an answer to my question. Kindly find out if possible...
I simply wanted to know that if an employee's basic salary is 20,000. Can the organization pay him PF at 10,000 basic ?
From India, New Delhi
Your explanations are welcome however they do not include an answer to my question. Kindly find out if possible...
I simply wanted to know that if an employee's basic salary is 20,000. Can the organization pay him PF at 10,000 basic ?
From India, New Delhi
Dear rolly, If the current salary is Rs. 20,000 then you can have the basic of Rs.10,000 and can deduct the PF on this amount with the mutual concern. Hope it answers your query. :) Regards, Ruchi
From India, Chandigarh
From India, Chandigarh
Dear Rolly,
Just go through my above post, it is very much clearly mention that
Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:
I hope it will definitely help you out to clear your query.
Amit Seth.
From India, Ahmadabad
Just go through my above post, it is very much clearly mention that
Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:
I hope it will definitely help you out to clear your query.
Amit Seth.
From India, Ahmadabad
hi amit,
thankyou fr the patience...
i know higher contributions are possible...
my question is not abt higher contributions but abt the fact that whether a person having 20K basic can pay PF on 10K basic with mutual consent of employee and employer or not?
i guess i have made myself ample clear? So please reply specifically otherwise yr answer is good for general guidelines knowledge but does not solve my purpose.
rolly
From India, New Delhi
thankyou fr the patience...
i know higher contributions are possible...
my question is not abt higher contributions but abt the fact that whether a person having 20K basic can pay PF on 10K basic with mutual consent of employee and employer or not?
i guess i have made myself ample clear? So please reply specifically otherwise yr answer is good for general guidelines knowledge but does not solve my purpose.
rolly
From India, New Delhi
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PF salab limit.pdf