Hello,
I want to know from anyone in respect of the actual amount of PF contribution made by the employee under PF Act. We know that the eligibility for contribution of PF by the employee is Rs. 6500/- and the contribution made by both the employee and the employer are 12% and 13.61% respectively.
I may be made clear in response to this post whether the percentage of contribution, i.e., 13.61% made by the employer includes the contribution of 12% by the employee plus 1.61%, or an eligible employee contributes in total 12% + 13.61% = 25.61% from his salary which includes Basic + DA. If possible, it may be clarified with suitable examples the actual contributions made by both the employer and the employee if the salary (Basic + DA) of the employee is Rs. 6000/-.
Thank you and hope to receive any reply from anybody in respect of the above.
[Biswajit Pani]
E-mail Id: bjpani@gmail.com
From India, Bhubaneswar
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13I want to know from anyone in respect of the actual amount of PF contribution made by the employee under PF Act. We know that the eligibility for contribution of PF by the employee is Rs. 6500/- and the contribution made by both the employee and the employer are 12% and 13.61% respectively.
I may be made clear in response to this post whether the percentage of contribution, i.e., 13.61% made by the employer includes the contribution of 12% by the employee plus 1.61%, or an eligible employee contributes in total 12% + 13.61% = 25.61% from his salary which includes Basic + DA. If possible, it may be clarified with suitable examples the actual contributions made by both the employer and the employee if the salary (Basic + DA) of the employee is Rs. 6000/-.
Thank you and hope to receive any reply from anybody in respect of the above.
[Biswajit Pani]
E-mail Id: bjpani@gmail.com
From India, Bhubaneswar
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Hi Biswjit,
There are some basics regarding PF:
1. PF is calculated on only the basic salary, not DA.
2. Employee contribution is 12%.
3. Employer contribution is divided into two parts:
A) 3.67% - which goes directly into the PF account of an employee.
B) 8.33% - which goes to the Family Pension Scheme.
Including the above, the employer has to pay Administrative Charges = 1.10% on the total amount of basic, i.e., 6500 & above.
Then the employer has to pay contributions for the EDLI Scheme = 0.5% and Administrative charges = 0.01% of the amount of total basic considered for the Family Pension Scheme, which does not include the total basic amount above 6500.
So, the total is = 12% (3.67 + 8.33) + 1.10 + 0.5 + 0.01 = 13.61% paid by the employer.
For 6000 basic, PF contribution by the employer = 720 + 66 + 30 + 0.6 = 816.6.
From India, Pune
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There are some basics regarding PF:
1. PF is calculated on only the basic salary, not DA.
2. Employee contribution is 12%.
3. Employer contribution is divided into two parts:
A) 3.67% - which goes directly into the PF account of an employee.
B) 8.33% - which goes to the Family Pension Scheme.
Including the above, the employer has to pay Administrative Charges = 1.10% on the total amount of basic, i.e., 6500 & above.
Then the employer has to pay contributions for the EDLI Scheme = 0.5% and Administrative charges = 0.01% of the amount of total basic considered for the Family Pension Scheme, which does not include the total basic amount above 6500.
So, the total is = 12% (3.67 + 8.33) + 1.10 + 0.5 + 0.01 = 13.61% paid by the employer.
For 6000 basic, PF contribution by the employer = 720 + 66 + 30 + 0.6 = 816.6.
From India, Pune
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Hi, I would like to know whether the employee contribution can exceed 12% or not? Looking forward to your response Sathish
From India, Coimbatore
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From India, Coimbatore
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The voluntary contry contribution rate of employee contribution can exceed from 12% but employer contribution will remain the same 13.61
From India, Jaipur
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From India, Jaipur
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Dear Anurag, Since you have mantioned that employee contribution could exceed 12%, please let me know the maximum limit and what would be the amount of Basic that would be shown in books of accounts.
From India, Delhi
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From India, Delhi
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An employee can contribute a max. of another 12% i.e. 12% mandatory and another 12% of basic VPF....Hope it helps!
From India, Mumbai
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From India, Mumbai
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Employer contribution is devided in two parts A) 3.67%- Which goes to family Pension Scheme. B) 8.33%- Which goes directly in the pf account of an emplyee Needs to be corrected.
From India, Mumbai
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From India, Mumbai
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Dear Mr. batra, The maximum limit of vpf is 20% from the employee side, but the contribution from the employer side remain same 13.61% regards, arpit sharma
From India, New Delhi
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From India, New Delhi
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Dear All,
Please refer to the below-mentioned calculations:
- A/C 1 (Provident Fund Employee's Contribution @ 12%)
- A/C 1 (Provident Fund Employer's contribution @ 3.67%)
- A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
- A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
- A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
- A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Thank you.
From India, Kolkata
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Please refer to the below-mentioned calculations:
- A/C 1 (Provident Fund Employee's Contribution @ 12%)
- A/C 1 (Provident Fund Employer's contribution @ 3.67%)
- A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
- A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
- A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
- A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Thank you.
From India, Kolkata
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Hello, If My Basic salary is 8000 and HRA is 5500.Then what Should be my Pf Deduction and Employer Contribution per month?Please help.
From India, Chennai
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From India, Chennai
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Considering BASIC + DA = Rs.8000.00
Employee’s Contribution towards A/C 1 is Rs.8000 X 12% = Rs.960.00
Employer’s Contribution towards A/C 1 is Rs.8000 X 3.67%= Rs. 293.60
Towards A/C 2 is Rs.8000 X 0.85%- Rs. 68.00
Towards A/C 10 is Rs. 8000 X 8.33%- Rs. 666.40
Towards A/C 21 is Rs. 8000 X 0.5%- Rs. 40.00
Towards A/C 22 is Rs. 8000 X 0.01%- Rs. 0.80
Moreover A/C 2 and 22 , the minimum balance has to be taken care by the Employer.
From India, Kolkata
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Employee’s Contribution towards A/C 1 is Rs.8000 X 12% = Rs.960.00
Employer’s Contribution towards A/C 1 is Rs.8000 X 3.67%= Rs. 293.60
Towards A/C 2 is Rs.8000 X 0.85%- Rs. 68.00
Towards A/C 10 is Rs. 8000 X 8.33%- Rs. 666.40
Towards A/C 21 is Rs. 8000 X 0.5%- Rs. 40.00
Towards A/C 22 is Rs. 8000 X 0.01%- Rs. 0.80
Moreover A/C 2 and 22 , the minimum balance has to be taken care by the Employer.
From India, Kolkata
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Hi, can an employer restrict/cap its PF contribution to Rs. 1800 per month (Rs. 1800 per month from the employee + Rs. 1800 per month by the employer) even though the basic pay of the employee is significantly high (over 1 lakh per month) and the employee is also contributing towards Voluntary PF.
From India, Delhi
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From India, Delhi
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Dear Seniors,
I want to know if Form no. 1 (ESIC), 2 (PF), and 11 (PF declaration form) for employees are mandatory to submit in the local PF office. Nowadays, employers are opting for online registration of new employees, and all processes have shifted from manual to online. Therefore, I would like to inquire if these forms are compulsory for submission at the Local PF/ESIC office.
Thanks & Regards,
From United States, Santa Clara
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I want to know if Form no. 1 (ESIC), 2 (PF), and 11 (PF declaration form) for employees are mandatory to submit in the local PF office. Nowadays, employers are opting for online registration of new employees, and all processes have shifted from manual to online. Therefore, I would like to inquire if these forms are compulsory for submission at the Local PF/ESIC office.
Thanks & Regards,
From United States, Santa Clara
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Dear All,
As per the latest amendment, the PF admin charges have been changed. Please follow this:
- A/c 1 EE (Employee Contribution) - 12%
- A/c 1 ER (Employer Contribution) - 3.67%
- A/c 2 (Administrative charges) - 0.65% with a minimum of Rs. 500
- A/c 10 (Pension Fund) - 8.33%
- A/c 21 (EDLI) - 0.5%
- A/c 22 (Administrative charges for EDLI) - 0%
Total - 13.15% with a minimum of Rs. 500 for A/c 2
EDLI Admin Charges (A/C # 22) for both Functional & Non-Functional Establishments W.E.F 01-04-2017 - No Sum is Payable/Nil (till 31-03-2017 @ 0.01% on EDLI Wages or Rs 200/- whichever is higher).
Regards
From India, Kolkata
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As per the latest amendment, the PF admin charges have been changed. Please follow this:
- A/c 1 EE (Employee Contribution) - 12%
- A/c 1 ER (Employer Contribution) - 3.67%
- A/c 2 (Administrative charges) - 0.65% with a minimum of Rs. 500
- A/c 10 (Pension Fund) - 8.33%
- A/c 21 (EDLI) - 0.5%
- A/c 22 (Administrative charges for EDLI) - 0%
Total - 13.15% with a minimum of Rs. 500 for A/c 2
EDLI Admin Charges (A/C # 22) for both Functional & Non-Functional Establishments W.E.F 01-04-2017 - No Sum is Payable/Nil (till 31-03-2017 @ 0.01% on EDLI Wages or Rs 200/- whichever is higher).
Regards
From India, Kolkata
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Hi Prevy,
As of now, Form 1 (ESIC Nomination) must be submitted to the local ESI office within 10 days of the appointment. Upon submission, you will receive an identification number associated with the Scheme. Form 2 (PF) is a mandatory submission to the PF office by the 25th of each month. A consolidated monthly statement can be submitted to the regional office on the 25th day of the month. Additionally, for Form 11, as you are registered under EPF, a declaration needs to be submitted to the EPF office. For any queries, please refer to the article: https://spiritofhr.wordpress.com/pf-...and-bonus-act/.
From India, Bengaluru
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As of now, Form 1 (ESIC Nomination) must be submitted to the local ESI office within 10 days of the appointment. Upon submission, you will receive an identification number associated with the Scheme. Form 2 (PF) is a mandatory submission to the PF office by the 25th of each month. A consolidated monthly statement can be submitted to the regional office on the 25th day of the month. Additionally, for Form 11, as you are registered under EPF, a declaration needs to be submitted to the EPF office. For any queries, please refer to the article: https://spiritofhr.wordpress.com/pf-...and-bonus-act/.
From India, Bengaluru
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Hi Vivek,
Considering your Voluntary PF, the percentage of your contribution can vary from 12% to 88%. If you fall under this slab and are looking at your basic and DA, yes, you can restrict your PF to 1800/-.
From India, Bengaluru
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Considering your Voluntary PF, the percentage of your contribution can vary from 12% to 88%. If you fall under this slab and are looking at your basic and DA, yes, you can restrict your PF to 1800/-.
From India, Bengaluru
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf