sir, can any one tell me about pf limit is it still 6500 or it has been changed to 10000 please confirm
From India, Panipat
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2From India, Panipat
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Hi Supriya,
The 6500/- represents the total employer and employee contributions to the Provident Fund (PF), limited to a maximum of 6500/- based on their Basic pay per month. This means that even if the employee's basic salary exceeds 6500/-, the PF contribution can be capped at 6500/- to mitigate the administrative charges borne by the company.
Jeeva
9343753361
From India, Bangalore
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The 6500/- represents the total employer and employee contributions to the Provident Fund (PF), limited to a maximum of 6500/- based on their Basic pay per month. This means that even if the employee's basic salary exceeds 6500/-, the PF contribution can be capped at 6500/- to mitigate the administrative charges borne by the company.
Jeeva
9343753361
From India, Bangalore
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Hi,
To exempt or exclude someone from PF, their salary should be more than 10,000/-. Additionally, PF will only be deducted on amounts exceeding 6,500/- for individuals covered under the scheme earning less than 10,000/-. For further clarification, please email me at uttamuksingh@gmail.com.
From India, Patna
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To exempt or exclude someone from PF, their salary should be more than 10,000/-. Additionally, PF will only be deducted on amounts exceeding 6,500/- for individuals covered under the scheme earning less than 10,000/-. For further clarification, please email me at uttamuksingh@gmail.com.
From India, Patna
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Dear SarithaJi, BOnus elegibility limit and ESI limit only raised to Rs.10000. PF Limit is remains as Rs.6500
From India, Madras
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From India, Madras
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Dear Friend,
It is not the PF which is limited to Rs. 6500/-; it is the limit towards the pension fund from the contribution made by the employers.
There is no limit for the PF contribution. 12% of Basic Plus DAs will be the individual employee's contribution towards PF.
Employers are also required to pay a similar amount in addition to charges such as EDLI payment and admin charges.
Out of 12% of the contribution made by the employer, an amount of Rs. 541 (8.33% of 6500) or 8.33% of the basic+DA of the individual will be made to the Pension fund. The remaining amount beyond this limit will be remitted to the individual members in the Employers' head of the account.
Example – A
If the basic + DA of an employee is Rs. 10000/-
a) The employer's contribution towards the Pension Fund is Rs. 541/-
b) The employer's contribution toward PF is Rs. 659/-
[i.e. – Rs. 10000 X 12% = Rs. 1200.00
Pension Fund 8.33% of 6500/- Rs. 541.00
Balance – Employers PF Cont. on a member- Rs. 659.00
Example – B
If the basic + DA of an employee is Rs. 6000/-
a) The employer's contribution towards the Pension Fund is Rs. 500/-
b) The employer's contribution toward PF is Rs. 220/-
[i.e. – Rs. 6000 X 12% = Rs. 720.00
Pension Fund Rs. 500.00
Balance – Employers PF Cont. on the member- Rs. 200.00
Regards,
Balamurugan Sivaprakasam
Head-HR
ICIL-MM Nagar
From India, Madras
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It is not the PF which is limited to Rs. 6500/-; it is the limit towards the pension fund from the contribution made by the employers.
There is no limit for the PF contribution. 12% of Basic Plus DAs will be the individual employee's contribution towards PF.
Employers are also required to pay a similar amount in addition to charges such as EDLI payment and admin charges.
Out of 12% of the contribution made by the employer, an amount of Rs. 541 (8.33% of 6500) or 8.33% of the basic+DA of the individual will be made to the Pension fund. The remaining amount beyond this limit will be remitted to the individual members in the Employers' head of the account.
Example – A
If the basic + DA of an employee is Rs. 10000/-
a) The employer's contribution towards the Pension Fund is Rs. 541/-
b) The employer's contribution toward PF is Rs. 659/-
[i.e. – Rs. 10000 X 12% = Rs. 1200.00
Pension Fund 8.33% of 6500/- Rs. 541.00
Balance – Employers PF Cont. on a member- Rs. 659.00
Example – B
If the basic + DA of an employee is Rs. 6000/-
a) The employer's contribution towards the Pension Fund is Rs. 500/-
b) The employer's contribution toward PF is Rs. 220/-
[i.e. – Rs. 6000 X 12% = Rs. 720.00
Pension Fund Rs. 500.00
Balance – Employers PF Cont. on the member- Rs. 200.00
Regards,
Balamurugan Sivaprakasam
Head-HR
ICIL-MM Nagar
From India, Madras
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