Provident Fund Ceiling limit enhanced from existing Rs. 6500 to Rs. 15000 per month. HR has to gear up for compliance and shell out extra money. Read my article for all details
HR, business article, career guidance, Distance Education, Business article: Government has notified Provident Fund Limit from existing 6500 to 15000 per month
From India, Mumbai
87HR, business article, career guidance, Distance Education, Business article: Government has notified Provident Fund Limit from existing 6500 to 15000 per month
From India, Mumbai
Hi Friends You can find GO for PF Limit Enhanced. it will applicable from 1st Sep 2014.
From India, Madgaon
From India, Madgaon
Dear Ramesh ji, Answers to your questions are as under: It is applicable from September 2014 PF payable in October 2014. Pension Contribution will be 1250 instead of 541; Rest what you said is OK.
From India, Mumbai
From India, Mumbai
korgaonkar sir please help me how the EPS contribution is calculated on 20000 basic salary as per new notificaion
From India, Boisar
From India, Boisar
Dear Shridhar2857,
If you replace the figure 6500 by 15000 in the EPF&MP Act, you will get the answer to your question.
Earlier there was a ceiling of contribution on salary Rs. 6500/- i.e. 12% on salary Rs. 6500 which comes to Rs. 780/-.
Now the ceiling is enhanced to salary Rs. 15000/-. So, 12% on salary Rs. 15000 which comes to Rs. 1800/-.
Contribution on salary Rs. 20000/- will be Rs.1800/- since there is a ceiling of salary at Rs. 15000/-.
However, if you wish to contribute on salary Rs. 20000/- which is more than ceiling limit, you can do so by joint request of employee and employer in writing to an officer not below APFC . In this case, the contribution of 12% on Rs. 20000/- would be 2400.
This all are in respect to contribution towards PF.
In regards to Pension Contribution, if you wish to contribute on salary Rs.20000/- i.e. the salary exceeding the ceiling, you can do so at the option of employee and employer. In this case, the employee have to contribute 1.16 % as an additional contribution on salary Rs. 5000/-. This amount of Rs.5000/- is an amount exceeding the ceiling amount.
Hope I have explained this to your understanding.
From India, Mumbai
If you replace the figure 6500 by 15000 in the EPF&MP Act, you will get the answer to your question.
Earlier there was a ceiling of contribution on salary Rs. 6500/- i.e. 12% on salary Rs. 6500 which comes to Rs. 780/-.
Now the ceiling is enhanced to salary Rs. 15000/-. So, 12% on salary Rs. 15000 which comes to Rs. 1800/-.
Contribution on salary Rs. 20000/- will be Rs.1800/- since there is a ceiling of salary at Rs. 15000/-.
However, if you wish to contribute on salary Rs. 20000/- which is more than ceiling limit, you can do so by joint request of employee and employer in writing to an officer not below APFC . In this case, the contribution of 12% on Rs. 20000/- would be 2400.
This all are in respect to contribution towards PF.
In regards to Pension Contribution, if you wish to contribute on salary Rs.20000/- i.e. the salary exceeding the ceiling, you can do so at the option of employee and employer. In this case, the employee have to contribute 1.16 % as an additional contribution on salary Rs. 5000/-. This amount of Rs.5000/- is an amount exceeding the ceiling amount.
Hope I have explained this to your understanding.
From India, Mumbai
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Provident fund.zip
PROVIDENT FUND.rar
PROVIDENT FUND.doc