Dear All,
Hi! everybody
I too, would like to clarify few of the points related to PF:-
1)For those employees whose basic salary is more than Rs 6500, few companies state way extempt them from PF, what should be the legal way of the same. Though he would have opt for PF but he is now not getting the same.
2) Secondly , now any employees whose basic is more than Rs 6500, (for instance Rs 10000) what should be his deduction. Please find below the deduction and state which is correct--
Basic -- Rs 10000
A) PF deducted from the employee:- Rs 1200/-
PF deducted from the employer:- Rs 1200/-of which Rs 541 would go to pension and the remaining to his account (1200-541)
OR
A) PF deducted from the employee:- Rs 780/-
PF deducted from the employer:- Rs 780/-
Please clarify.
3) As per the act what I know is that 1.61% of the PF charges is to be borne by the employer. Should the same % be taken into account while calculating the CTC or not .
4) If any employee whose basic is above Rs 6500/- is there any legal binding that the company will deduct only Rs 780/- from his salary as Pf deduction and not the original binding.
Please do reply soon,
Daya
From India, Calcutta
1Hi! everybody
I too, would like to clarify few of the points related to PF:-
1)For those employees whose basic salary is more than Rs 6500, few companies state way extempt them from PF, what should be the legal way of the same. Though he would have opt for PF but he is now not getting the same.
2) Secondly , now any employees whose basic is more than Rs 6500, (for instance Rs 10000) what should be his deduction. Please find below the deduction and state which is correct--
Basic -- Rs 10000
A) PF deducted from the employee:- Rs 1200/-
PF deducted from the employer:- Rs 1200/-of which Rs 541 would go to pension and the remaining to his account (1200-541)
OR
A) PF deducted from the employee:- Rs 780/-
PF deducted from the employer:- Rs 780/-
Please clarify.
3) As per the act what I know is that 1.61% of the PF charges is to be borne by the employer. Should the same % be taken into account while calculating the CTC or not .
4) If any employee whose basic is above Rs 6500/- is there any legal binding that the company will deduct only Rs 780/- from his salary as Pf deduction and not the original binding.
Please do reply soon,
Daya
From India, Calcutta
There is nothing in the Act which says that the employer SHOULD restrict contributions on Rs 6500 but it is optional for the employer. If he is willing to contribute on a higher salary, he can do so. However, the Pension Fund contribution of 8.33% shall be calculated on a maximum salary of Rs 6500. That means if the employer is contributing Rs 1200 (12% of Rs 10000) then he can remit Rs 541 in Pension fund and the balance, Rs 659 shall be remitted in Provident fund along with the employee's share of Rs 1200.
Regarding coverage, it is mandatory that every person whose salary at the time of joining is not more than Rs 6500 should be covered. That means, if the salary of the employee at the time of his joining is more than Rs 6500 is he may be excluded, provided he has never been a member of the PF or if he had withdrawn his PF benefits or is receiving PF Pension. Here also, the company policy with regard to this social security cover is important and that if the employer is ready to extend the cover to all irrespective of salary, he can do so. An employee once covered by the Act will continue to be covered irrespective of any increase in his salary.
1.16% is the share of the Government towards Pension fund of the member.
Regards,
Madhu.T.K
From India, Kannur
Regarding coverage, it is mandatory that every person whose salary at the time of joining is not more than Rs 6500 should be covered. That means, if the salary of the employee at the time of his joining is more than Rs 6500 is he may be excluded, provided he has never been a member of the PF or if he had withdrawn his PF benefits or is receiving PF Pension. Here also, the company policy with regard to this social security cover is important and that if the employer is ready to extend the cover to all irrespective of salary, he can do so. An employee once covered by the Act will continue to be covered irrespective of any increase in his salary.
1.16% is the share of the Government towards Pension fund of the member.
Regards,
Madhu.T.K
From India, Kannur
Dear Daya, On Addition to Madhu i would like to say kindly filled Form-11 for excluded employees and send to the local PF office. Regards Ratikanta Rath
From India, Durgapur
From India, Durgapur
Dear Daya,
Greetings for the day,
Madhu is right that there is no hard and fast rule to ristrict the epf on Rs.
6500/-, Rs. 6500/- is the cealing for EPS/EDLI not for EPF. EPF deduction should be done on basic+da/vda+food conc.(if any).
thanks & regards,
From,
Sumit Kumar saxena.
From India, Ghaziabad
Greetings for the day,
Madhu is right that there is no hard and fast rule to ristrict the epf on Rs.
6500/-, Rs. 6500/- is the cealing for EPS/EDLI not for EPF. EPF deduction should be done on basic+da/vda+food conc.(if any).
thanks & regards,
From,
Sumit Kumar saxena.
From India, Ghaziabad
Hello to all seniors. i wanted to know the procedure through which our Pf Account money can be Withdrawal from our account.quick reviews will be highly appreciated.
From India, Chandigarh
From India, Chandigarh
Dear Mr.Daya
Refer to your query on the above subject, the following points to be observed for exemptions both for employee and employer under the provisions of EPF MISC Provisions 1952 Rules.
1. Exempted Employee : At the time of inception, whose wages/salaries are above Rs.6,500/- per month you need not continue a member under PF Act 1952 Rules.you can exempt the employee from PF Act. (Refer Sec 43)
2. Exempted Establishments: Establishments shall frame a trust according to the guidelines of PRFO/CPFO to provide more benefits of the existing schemes under Sec.17 (1) and also Relaxation order for exemption under EDLI Scheme of Sec 17 (1) C of EPF Act.
Regards
V R RAO PULIPAKA
From India, Bangalore
Refer to your query on the above subject, the following points to be observed for exemptions both for employee and employer under the provisions of EPF MISC Provisions 1952 Rules.
1. Exempted Employee : At the time of inception, whose wages/salaries are above Rs.6,500/- per month you need not continue a member under PF Act 1952 Rules.you can exempt the employee from PF Act. (Refer Sec 43)
2. Exempted Establishments: Establishments shall frame a trust according to the guidelines of PRFO/CPFO to provide more benefits of the existing schemes under Sec.17 (1) and also Relaxation order for exemption under EDLI Scheme of Sec 17 (1) C of EPF Act.
Regards
V R RAO PULIPAKA
From India, Bangalore
Dear Sir,
Regarding your query to know the procedure towards withdrawal of your accumulations from PF, the following points to be noticed carefully.
1. Withdrawal to be permitted at the time of leaving the organisation due to Resignation, Retirement, Death or Permenant disability, settled in abroad, woman employee shall not continue in service after married etc.
2. If an employee leaves the organization on his own accord for resignation, 60 days grace period is required to withdrawal the amount lies with EPFO. In other cases as stated above, grace period is not required.
3. You can submit Form 19 & 10 C along with copies of Form 5 & 10, Form 3A of current year contribution particulars, Xerox copy of First page of SB Account Pass Book or Un used Cheque in the concerned office.
4. EPFO will directly deposit the amount with in 30 days in your Bank Account, if the above things are fulfilled at your end with out delay.
Regards
V R RAO PULIPAKA
From India, Bangalore
Regarding your query to know the procedure towards withdrawal of your accumulations from PF, the following points to be noticed carefully.
1. Withdrawal to be permitted at the time of leaving the organisation due to Resignation, Retirement, Death or Permenant disability, settled in abroad, woman employee shall not continue in service after married etc.
2. If an employee leaves the organization on his own accord for resignation, 60 days grace period is required to withdrawal the amount lies with EPFO. In other cases as stated above, grace period is not required.
3. You can submit Form 19 & 10 C along with copies of Form 5 & 10, Form 3A of current year contribution particulars, Xerox copy of First page of SB Account Pass Book or Un used Cheque in the concerned office.
4. EPFO will directly deposit the amount with in 30 days in your Bank Account, if the above things are fulfilled at your end with out delay.
Regards
V R RAO PULIPAKA
From India, Bangalore
Hi all Que. if my basic salary is Rs. 10000 can i opt for pf deduction on 6500 only of my basic salary & what was my subscription? please tell me with the of law.
From India, Delhi
From India, Delhi
Mr. Madhu mentioned in last para as 1.16 % is the share of the govt. Pension fund. Its wrong, i think it is typical error. 1.61 % is correct. Dharani dharan V Manager HR Unipel Logistics
From India, Bangalore
From India, Bangalore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
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