Dear All
I am working as administrative officer with a management college. Kindly help me in following problems :-
1- As the PF ceiling has been enhanced to 15000 it is mandatory to deduct the PF amount on 15000 of the already existing employees ?
2- As the existing employees are covered under the 6500 ceiling the deduction of the existing employees be increased to 15000?
3- Kindly mention the Record to me maintained according the PF Act.
4- Kindly tell about the details of how to deduct the PF amount in case of Grade Pay, as it is applicable to UPTU teachers.
Thanks
Vinay
From India, Allahabad
I am working as administrative officer with a management college. Kindly help me in following problems :-
1- As the PF ceiling has been enhanced to 15000 it is mandatory to deduct the PF amount on 15000 of the already existing employees ?
2- As the existing employees are covered under the 6500 ceiling the deduction of the existing employees be increased to 15000?
3- Kindly mention the Record to me maintained according the PF Act.
4- Kindly tell about the details of how to deduct the PF amount in case of Grade Pay, as it is applicable to UPTU teachers.
Thanks
Vinay
From India, Allahabad
The recent changes in the PF applies only to establishments not being government departments like government or government aided schools.
If the salary is more than Rs 6500, and in the past you have been paying PF on a maximum salary of Rs 6500, then you can make it salary subject to a maximum of Rs 15000. That means if the salary is Rs 12000 and if you have been paying PF on Rs 6500, then pay it on Rs 12000 effective from 1st September. If the salary is more than Rs 15000, say, Rs 25000, you can restrict the contribution to 12% of Rs 15000. You are not liable to contribute on the total salary, ie, Rs 25000.
Any employee in respect of whom no contribution was made earlier due to the reason that their salary at the time of joining your institution was more than Rs 6500, would come under the PF cover now provided their salary is not more than Rs 15000. If still their salary is more than Rs 15000, they will continue to be excluded.
All existing records shall be continued under the new system also. In case more employees come under the coverage of PF Act then declaration in form 2 from them shall be collected. When form 5 is filed online, please mention them as new joinees to the scheme.
Grade Pay is to be treated as basic salary for the purpose of PF deduction.
Please note that the above have nothing to do with provident funds other than that constituted under the Employees Provident fund and Misc. provisions Act.
Madhu.T.K
From India, Kannur
4246If the salary is more than Rs 6500, and in the past you have been paying PF on a maximum salary of Rs 6500, then you can make it salary subject to a maximum of Rs 15000. That means if the salary is Rs 12000 and if you have been paying PF on Rs 6500, then pay it on Rs 12000 effective from 1st September. If the salary is more than Rs 15000, say, Rs 25000, you can restrict the contribution to 12% of Rs 15000. You are not liable to contribute on the total salary, ie, Rs 25000.
Any employee in respect of whom no contribution was made earlier due to the reason that their salary at the time of joining your institution was more than Rs 6500, would come under the PF cover now provided their salary is not more than Rs 15000. If still their salary is more than Rs 15000, they will continue to be excluded.
All existing records shall be continued under the new system also. In case more employees come under the coverage of PF Act then declaration in form 2 from them shall be collected. When form 5 is filed online, please mention them as new joinees to the scheme.
Grade Pay is to be treated as basic salary for the purpose of PF deduction.
Please note that the above have nothing to do with provident funds other than that constituted under the Employees Provident fund and Misc. provisions Act.
Madhu.T.K
From India, Kannur
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PF WORKING-MASTER SUMMARY.xls