Dear Sir,
I need clarification on the following Points on EPF and Misc. Provisions Act:
1. PF Deduction: PF Deduction done for the Employees Is it on Basic Salary and VDA fixed by the Company or only on PF ?? Any other allowances added recently for deduction of PF??
2. PF Coverage for Employee crossing 15000 PF Salary: Is it mandatory for Management to cover Employees who cross PF Salary limit of Rs.15000/- or such employees can be taken out of coverage of PF Scheme. We have covered all employees including Managers but their Employer contribution will be limited to @ Rs.15000/- i.e., 1800/- per month.
3. According to my knowledge PF deduction is @ 12% for all Establishments covered under PF and those Establishments where less than 10 employees are on rolls PF deduction can be @ 10%. Apart fro the above, is there any other Establishment like Hospitals and Nursing Homes where PF deduction can be done @ 4% of wages or salary
4. In my experience, I see almost all companies extend facility of PF coverage to all employees including Senior Managers and Managerial staff . In your experience what is the percentage of companies who have excluded such coverage and kept Higher Salary employees out of PF Scheme.
Kindly provide me your valuable feedback on the above points.
From India, Bangalore
3I need clarification on the following Points on EPF and Misc. Provisions Act:
1. PF Deduction: PF Deduction done for the Employees Is it on Basic Salary and VDA fixed by the Company or only on PF ?? Any other allowances added recently for deduction of PF??
2. PF Coverage for Employee crossing 15000 PF Salary: Is it mandatory for Management to cover Employees who cross PF Salary limit of Rs.15000/- or such employees can be taken out of coverage of PF Scheme. We have covered all employees including Managers but their Employer contribution will be limited to @ Rs.15000/- i.e., 1800/- per month.
3. According to my knowledge PF deduction is @ 12% for all Establishments covered under PF and those Establishments where less than 10 employees are on rolls PF deduction can be @ 10%. Apart fro the above, is there any other Establishment like Hospitals and Nursing Homes where PF deduction can be done @ 4% of wages or salary
4. In my experience, I see almost all companies extend facility of PF coverage to all employees including Senior Managers and Managerial staff . In your experience what is the percentage of companies who have excluded such coverage and kept Higher Salary employees out of PF Scheme.
Kindly provide me your valuable feedback on the above points.
From India, Bangalore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf