HI all,
I wanted to know if any employee has a basic salary of RS 6800 and he has a loss of pay for 5 days then his basic would reduced to 5666 then i would like to know how PF is calculated will it calculate on the original basic or reduced basic??
Can anyone explain.
Regards
janhavi
From India
1I wanted to know if any employee has a basic salary of RS 6800 and he has a loss of pay for 5 days then his basic would reduced to 5666 then i would like to know how PF is calculated will it calculate on the original basic or reduced basic??
Can anyone explain.
Regards
janhavi
From India
Dear Janhavi,
In such a case the PF will be calculated on reduced basic and not on the original basic i.e Rs.5666 only. Hope this is clear for you if not you can get back to me on the same............
Regards
Amith R.
From India, Bangalore
In such a case the PF will be calculated on reduced basic and not on the original basic i.e Rs.5666 only. Hope this is clear for you if not you can get back to me on the same............
Regards
Amith R.
From India, Bangalore
Hi amith,
Thanks a lot for your reply.PF will be calculated on reduced basic and for 30 days(calendar days) right. IF any employee joins the organization in mid of the month pf will be calculated for 15 days right.
I had one more doubt in ESI calculation ,calculation will be for 26 days if any employee goes on Loss of pay say 5 days will the ESi calculated on 26-5 days or 26 days only.
Could u please clarify this.
Regards
janhavi
From India
Thanks a lot for your reply.PF will be calculated on reduced basic and for 30 days(calendar days) right. IF any employee joins the organization in mid of the month pf will be calculated for 15 days right.
I had one more doubt in ESI calculation ,calculation will be for 26 days if any employee goes on Loss of pay say 5 days will the ESi calculated on 26-5 days or 26 days only.
Could u please clarify this.
Regards
janhavi
From India
Dear Janhavi,
According to me when you do Loss of Pay each of the salary components will get reduced depending on the number days, so ultimately his Gross will get reduced i.e if he/she as come for 26 days only than his gross will be less compared to that of complete month. And in such cases you need to calculate again for 26 days only and not for 26-5 days.
Coming to an employee joining in mid of the month than PF and ESI will be calculated for only those number of days.
And about number of days its not like considering 30 days only you can consider 31 or 30 or 29 or even 28 days respectively depending on the month for considering LOP. Hope this is clear for you, if not you can come back for sure with your query.
Regards
Amith R.
From India, Bangalore
According to me when you do Loss of Pay each of the salary components will get reduced depending on the number days, so ultimately his Gross will get reduced i.e if he/she as come for 26 days only than his gross will be less compared to that of complete month. And in such cases you need to calculate again for 26 days only and not for 26-5 days.
Coming to an employee joining in mid of the month than PF and ESI will be calculated for only those number of days.
And about number of days its not like considering 30 days only you can consider 31 or 30 or 29 or even 28 days respectively depending on the month for considering LOP. Hope this is clear for you, if not you can come back for sure with your query.
Regards
Amith R.
From India, Bangalore
Hi! everybody, I have a doubt in epf scheme can anybody clarify the same.
Our company entered in to EPF scheme under voluntary coverage recently. Most of the employees working in our company are drawing more than Rs.6,500/- as basic pay + DA. I would like to know whether it is manadatory for the employees drawing more than Rs.6500/- as basic _ DA, to contribute 12% of the basic pay + DA+ allowances towards EPF contribution or can they restrict their EPF contribution to Rs. 780/- ( i.e. 12% of Rs.6500/-) irrespective of their Basic pay _ DA.
Similarily, I would also like to know whether, the employer contribution should be equal to the employees contribution of EPF or the employer can restrict to Rs.780/- i.e. 12% of Rs.6500/-.
Our company entered in to EPF scheme under voluntary coverage recently. Most of the employees working in our company are drawing more than Rs.6,500/- as basic pay + DA. I would like to know whether it is manadatory for the employees drawing more than Rs.6500/- as basic _ DA, to contribute 12% of the basic pay + DA+ allowances towards EPF contribution or can they restrict their EPF contribution to Rs. 780/- ( i.e. 12% of Rs.6500/-) irrespective of their Basic pay _ DA.
Similarily, I would also like to know whether, the employer contribution should be equal to the employees contribution of EPF or the employer can restrict to Rs.780/- i.e. 12% of Rs.6500/-.
hey guys i need a help. can anyone make me understand regarding PF and whole salary structure. regards, gopi
From India, Ahmadabad
From India, Ahmadabad
As per my view In case Employee basic+DA is more than 6500 pm then Employer Restrict theire contribution 780/-pm.:unsure:
From India, Hyderabad
From India, Hyderabad
Dear Kuldeep,
If your employees PF is contributed on exact basic and if at all it is more than than you really cant reduce it back to only. Infact i just got this clarified from the PF enforcement officer yesterday.
Dear Gopi,
I would suggest you to visit the PF website www.epfindia.com where you can get to know more about EPF.
Regards
Amith R.
From India, Bangalore
If your employees PF is contributed on exact basic and if at all it is more than than you really cant reduce it back to only. Infact i just got this clarified from the PF enforcement officer yesterday.
Dear Gopi,
I would suggest you to visit the PF website www.epfindia.com where you can get to know more about EPF.
Regards
Amith R.
From India, Bangalore
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HC All - Trainees not covered for PF -2010.pdf
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