Hi to all,
can anyone clear my doubt abt PF..... I know the PF contribution and ceiling amount (6500/- plz mention any updation in this amt?), but is there any minimum or maximum amount of contribution.......?
for example if the person getting more than 6500/- means its optional for PF contribution right.....? whether the same percentage (12%+3.67=15.67) for all employees or any limit in this......?
please mention for which type of industries/comapnies/organisation is covered under PF Act? or is it compulsory to all industries........?
From India, Madras
can anyone clear my doubt abt PF..... I know the PF contribution and ceiling amount (6500/- plz mention any updation in this amt?), but is there any minimum or maximum amount of contribution.......?
for example if the person getting more than 6500/- means its optional for PF contribution right.....? whether the same percentage (12%+3.67=15.67) for all employees or any limit in this......?
please mention for which type of industries/comapnies/organisation is covered under PF Act? or is it compulsory to all industries........?
From India, Madras
Dear Brindha,
Regarding PF Contribution -Employer should pay 12% of Basic salary, in which 8.33% will goes to Pension Scheme balance 3.67 will goes to PF.
While calculating the Pension Scheme employer should pay 8.33% of basic (limit is upto Rs.6500/ ie Rs.541/-) not more than that rest will goes to PF.
For eg. If the employees is getting Basic salary of Rs.8000/- Rs.541/-(8.33%) will goes to pension scheme and Rs.419/- will goes to PF, however employer has to contribute 12% of basic, whatever be the amount.
Regarding Employee Contribution of 12% from basic is unavoidable as per the PF act.
Rate of Contribution
What may it may be the company they have to contribute the below following
Employee 12%
(Basic wages, dearness allowance)
Employer 13.61%
Contribution:
3.67% = Provident Fund (A/c No.1)
8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS -Employees Direct Linked Insurance Scheme (A/c No.21)
Administrative Charges:
1.10% of emoluments = Provident Fund (A/c No.2)
0.01% of emoluments = EDLIS (A/c No.22)
Total 25.61%
Warmest Regards,
Mohan.M.S
From India, Madras
28Regarding PF Contribution -Employer should pay 12% of Basic salary, in which 8.33% will goes to Pension Scheme balance 3.67 will goes to PF.
While calculating the Pension Scheme employer should pay 8.33% of basic (limit is upto Rs.6500/ ie Rs.541/-) not more than that rest will goes to PF.
For eg. If the employees is getting Basic salary of Rs.8000/- Rs.541/-(8.33%) will goes to pension scheme and Rs.419/- will goes to PF, however employer has to contribute 12% of basic, whatever be the amount.
Regarding Employee Contribution of 12% from basic is unavoidable as per the PF act.
Rate of Contribution
What may it may be the company they have to contribute the below following
Employee 12%
(Basic wages, dearness allowance)
Employer 13.61%
Contribution:
3.67% = Provident Fund (A/c No.1)
8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS -Employees Direct Linked Insurance Scheme (A/c No.21)
Administrative Charges:
1.10% of emoluments = Provident Fund (A/c No.2)
0.01% of emoluments = EDLIS (A/c No.22)
Total 25.61%
Warmest Regards,
Mohan.M.S
From India, Madras
Dear Brinda,
PAYMENT OF CONTRIBUTION
A/c – 1 EPF EMPLOYERS 12% + EMPLOYEES 3.67% = 15.67 %
A/c – 2 EPF ADMIN CHARGES 1.10%
A/c – 10 EPS EMPLOYEES 8.33 %
A/c – 21 EDLI 0.50 %
A/c – 22 EDLI ADMIN CHARGES 0.01%
TOTAL = 25.61%
Please find the attached PPT for your reference...
From India, Bangalore
PAYMENT OF CONTRIBUTION
A/c – 1 EPF EMPLOYERS 12% + EMPLOYEES 3.67% = 15.67 %
A/c – 2 EPF ADMIN CHARGES 1.10%
A/c – 10 EPS EMPLOYEES 8.33 %
A/c – 21 EDLI 0.50 %
A/c – 22 EDLI ADMIN CHARGES 0.01%
TOTAL = 25.61%
Please find the attached PPT for your reference...
From India, Bangalore
Hi Suki,
This is for your kind information.Your PPT shows wrong information pls correct it.
Employee's Contribution - 12% + Employers Contribution 3.67% all together 15.67% A/c no.1
Administrative Charges- 1.10% (A/c No.2)
Employers 8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS -Employees Direct Linked Insurance Scheme (A/c No.21)
0.01% of emoluments = EDLIS (A/c No.22)
Overall Contribution by the employer's is 13.61%
Overall Contribution by the employee's is 12%
Total-25.61%
Warmest Regards,
Mohan.M.S
From India, Madras
This is for your kind information.Your PPT shows wrong information pls correct it.
Employee's Contribution - 12% + Employers Contribution 3.67% all together 15.67% A/c no.1
Administrative Charges- 1.10% (A/c No.2)
Employers 8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS -Employees Direct Linked Insurance Scheme (A/c No.21)
0.01% of emoluments = EDLIS (A/c No.22)
Overall Contribution by the employer's is 13.61%
Overall Contribution by the employee's is 12%
Total-25.61%
Warmest Regards,
Mohan.M.S
From India, Madras
hey manoj .. ur explanation was really comprehensive... can u also throw some light on state insurance..? tnx
From United States, Cambridge
From United States, Cambridge
Dear Frnds kindly updated me that EDLI death benefit has been incresed up to 1,00,000/- from this month Regards. Akhilesh
From India, Bangalore
From India, Bangalore
ALL smart people, Could you answer my question please?
About maximum pensionable salary ->
Nobody so far has been able to tell me the meaning of the following text from EPF website - (Please read this on the government's official website ->>[COLOR=blue]http://epfindia.com)
I've read the EPS 1995 scheme. As far my understanding says, this clause states that while calculating pension, we can CHOOSE not to limit pension as maximum of Rs. 541 but CAN CHOOSE to get the higher of 8.33% of basic salary!! This can mean that we CAN get a pension of more than Rs. 50,000 (rather than a meagre Rs. 2500 if we limit it to Rs. 541.) Government does not promote it because they'll have to pay a hell lot more pension!! But some CA who's an expert in PF can probably help. It's for benefit of all employees!!
The clause is as under-->
The maximum pensionable salary shall be limited to 19[Rupees six thousand and five hundred /Rs.6500/-] per month.20[Provided that if at the option of the employer and employee, contribution paid on salary exceeding 21[Rupees six thousand and five hundred /Rs.6500/-] per month from the date of commencement of this Scheme or from the date salary exceeds 22[Rupees six thousand and five hundred /Rs.6500/-] whichever is later, and 8.33 per cent share of the employers thereof is remitted into the Pension Fund, pensionable salary shall be based on such higher salary.] 20. Inserted ibid w.e.f 16.3.96. 19 & 21 & 22 . Subs. By GSR 774 (E) dated the 8.10.2001 (w.e.f. 1.6.2001).
I read this article in Times of India some years ago.
Can a CA/PF expert please analyse the EPS 1995 scheme and let us know if there's some hidden treasure in EPS that ALL employees can get?
regards,
pegL
From United Kingdom, Saint Helens
About maximum pensionable salary ->
Nobody so far has been able to tell me the meaning of the following text from EPF website - (Please read this on the government's official website ->>[COLOR=blue]http://epfindia.com)
I've read the EPS 1995 scheme. As far my understanding says, this clause states that while calculating pension, we can CHOOSE not to limit pension as maximum of Rs. 541 but CAN CHOOSE to get the higher of 8.33% of basic salary!! This can mean that we CAN get a pension of more than Rs. 50,000 (rather than a meagre Rs. 2500 if we limit it to Rs. 541.) Government does not promote it because they'll have to pay a hell lot more pension!! But some CA who's an expert in PF can probably help. It's for benefit of all employees!!
The clause is as under-->
The maximum pensionable salary shall be limited to 19[Rupees six thousand and five hundred /Rs.6500/-] per month.20[Provided that if at the option of the employer and employee, contribution paid on salary exceeding 21[Rupees six thousand and five hundred /Rs.6500/-] per month from the date of commencement of this Scheme or from the date salary exceeds 22[Rupees six thousand and five hundred /Rs.6500/-] whichever is later, and 8.33 per cent share of the employers thereof is remitted into the Pension Fund, pensionable salary shall be based on such higher salary.] 20. Inserted ibid w.e.f 16.3.96. 19 & 21 & 22 . Subs. By GSR 774 (E) dated the 8.10.2001 (w.e.f. 1.6.2001).
I read this article in Times of India some years ago.
Can a CA/PF expert please analyse the EPS 1995 scheme and let us know if there's some hidden treasure in EPS that ALL employees can get?
regards,
pegL
From United Kingdom, Saint Helens
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