Dear Seniors,
I want to clarify about the PF deduction. I know that the deduction is 12% on basic, but i don\'t understand about the deduction of Rs. 780. If the Basic is Rs. 14000 the 12% comes Rs. 1680 so the deduction should be the same, but the co. is deducting Rs. 780 only. Kindly clarify about the above.
Thanks
From India, Gurgaon
I want to clarify about the PF deduction. I know that the deduction is 12% on basic, but i don\'t understand about the deduction of Rs. 780. If the Basic is Rs. 14000 the 12% comes Rs. 1680 so the deduction should be the same, but the co. is deducting Rs. 780 only. Kindly clarify about the above.
Thanks
From India, Gurgaon
The minimum basic salary for calculation of PF is Rs. 6500 . The Emoployers shall deduct PF on the minimum amount as per the EPF Act. The maximum deduction of PF depends on the Company Policies.The calculation is given below.
=6500*12/100= 780.
Regards,
Supriya Sharm
From India, Gurgaon
1=6500*12/100= 780.
Regards,
Supriya Sharm
From India, Gurgaon
Dear Suman,
Your logic is right.! But, currently EPF Wages ceiling is Rs. 6,500/- and the employers are bounded for maximum 12% contribution on EPF Wages Ceiling, i.e. Rs. 6,500/-. Due to that, it becomes Rs.780/-.
But, if the employer wants to remit beyond the Wages Ceiling, then they can do as per their will. But, they are not bounded for that.
Hope this will clear your doubt. Cheers.
From India, Delhi
Your logic is right.! But, currently EPF Wages ceiling is Rs. 6,500/- and the employers are bounded for maximum 12% contribution on EPF Wages Ceiling, i.e. Rs. 6,500/-. Due to that, it becomes Rs.780/-.
But, if the employer wants to remit beyond the Wages Ceiling, then they can do as per their will. But, they are not bounded for that.
Hope this will clear your doubt. Cheers.
From India, Delhi
Dear All,
I want to know one more thing in the same regard, if my basic salary is Rs.14000/- and employer is deducting the employee share 12% on Rs. 14000/- cne employer disosit his share on Rs.6500/-.
Regards
Isha
From India, New Delhi
I want to know one more thing in the same regard, if my basic salary is Rs.14000/- and employer is deducting the employee share 12% on Rs. 14000/- cne employer disosit his share on Rs.6500/-.
Regards
Isha
From India, New Delhi
Dear Ishal,
For your kind information...
WAGE CEILING FOR PF COVERAGE TO BE RAISED TO RS.15,000 per month
Also monthly pension Rs.1000 per month
The Finance Ministry has approved a proposal for providing a minimum monthly pension of Rs. 1,000 to workers in the organised sector, a move which would benefit 27 lakh pensioners immediately.
The ministry has also approved a proposal for raising the basic wage ceiling under the Employees Provident Fund Scheme to Rs. 15,000, from existing Rs. 6,500 per month
At present, there are about 44 lakh pensioners. Of this 27 lakh, including 5 lakh widows, get less than Rs. 1,000 a month.
The government will provide additional contribution of Rs. 1,217 crore to ensure the minimum monthly pension of Rs. 1,000 starting 2014-15. Pensioners are, therefore, expected to get benefit with effect from April 1 this year.
Labour Minister Oscar Fernandes, however, is yet to decide on whether the move requires the Cabinet approval or not.
The Labour Ministry's proposal on giving a minimum monthly pension of Rs. 1,000 under the EPS-95, run by the Employees' Provident Fund Organisation (EPFO), has been pending for a long time.
Earlier, the Labour Ministry had proposed that government should increase contribution on EPS-95 from 1.16 per cent of basic wage to 1.79 per cent to ensure minimum pension.
However, it did not find favour with the Finance Ministry as this would have resulted in a permanent increase in its contribution.
The Labour Ministry in its revised proposal has asked the Finance Ministry to provide for around Rs. 1,217 crore additional amount every year, and indicated that this amount can come down over a period of time with more members subscribing to EPS-95.
Regards,
Dineshkumar M
From India, Chengalpattu
For your kind information...
WAGE CEILING FOR PF COVERAGE TO BE RAISED TO RS.15,000 per month
Also monthly pension Rs.1000 per month
The Finance Ministry has approved a proposal for providing a minimum monthly pension of Rs. 1,000 to workers in the organised sector, a move which would benefit 27 lakh pensioners immediately.
The ministry has also approved a proposal for raising the basic wage ceiling under the Employees Provident Fund Scheme to Rs. 15,000, from existing Rs. 6,500 per month
At present, there are about 44 lakh pensioners. Of this 27 lakh, including 5 lakh widows, get less than Rs. 1,000 a month.
The government will provide additional contribution of Rs. 1,217 crore to ensure the minimum monthly pension of Rs. 1,000 starting 2014-15. Pensioners are, therefore, expected to get benefit with effect from April 1 this year.
Labour Minister Oscar Fernandes, however, is yet to decide on whether the move requires the Cabinet approval or not.
The Labour Ministry's proposal on giving a minimum monthly pension of Rs. 1,000 under the EPS-95, run by the Employees' Provident Fund Organisation (EPFO), has been pending for a long time.
Earlier, the Labour Ministry had proposed that government should increase contribution on EPS-95 from 1.16 per cent of basic wage to 1.79 per cent to ensure minimum pension.
However, it did not find favour with the Finance Ministry as this would have resulted in a permanent increase in its contribution.
The Labour Ministry in its revised proposal has asked the Finance Ministry to provide for around Rs. 1,217 crore additional amount every year, and indicated that this amount can come down over a period of time with more members subscribing to EPS-95.
Regards,
Dineshkumar M
From India, Chengalpattu
Dear Isha,
As per The Employees Provident Fund & Miscellaneous Act, 1952, The ceiling limit for an Employer to pay the PF is 6500 with 12 %only. Whereas the employee can contribute at a voluntary higher rate or higher amount.
Ex: An employee is getting 15000 as his salary, The Employer contribution should be (minimum) 780 (6500*12%). Where the employee side minimum is 780 (6500*12%), but maximum is any % or any amount he is drawing. He can opt for even 24 % @ 15000 also.But the higher rate should be voluntary.
Regards,
Swarna
From India, Visakhapatnam
As per The Employees Provident Fund & Miscellaneous Act, 1952, The ceiling limit for an Employer to pay the PF is 6500 with 12 %only. Whereas the employee can contribute at a voluntary higher rate or higher amount.
Ex: An employee is getting 15000 as his salary, The Employer contribution should be (minimum) 780 (6500*12%). Where the employee side minimum is 780 (6500*12%), but maximum is any % or any amount he is drawing. He can opt for even 24 % @ 15000 also.But the higher rate should be voluntary.
Regards,
Swarna
From India, Visakhapatnam
The minimum basic salary for calculation of PF is Rs. 6500 . The Emoployers shall deduct PF on the minimum amount as per the EPF Act. The maximum deduction of PF depends on the Company Policies.The calculation is given below.
=6500*12/100= 780.
Regards,
Supriya Sharm
attribution https://www.citehr.com/482620-about-...#ixzz2s5wTmF1C
From India, Delhi
=6500*12/100= 780.
Regards,
Supriya Sharm
attribution https://www.citehr.com/482620-about-...#ixzz2s5wTmF1C
From India, Delhi
Dear,
As per PF Act the minimum basic wages for PF calculation is 6500, and maximum wages depend on the mutual understanding of two parties (Employee and Employer) so the dedection of PF on 6500 would be 780 (6500x12/100) and the deduction on 14000 would be 1680.
Regards,
Mohd Shamshad Ahmad
From India, Delhi
As per PF Act the minimum basic wages for PF calculation is 6500, and maximum wages depend on the mutual understanding of two parties (Employee and Employer) so the dedection of PF on 6500 would be 780 (6500x12/100) and the deduction on 14000 would be 1680.
Regards,
Mohd Shamshad Ahmad
From India, Delhi
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