With regard to the 09-10 epf statement received via the company, company contribution was less that employee (as per the ctc as well) the hr mentioned that the amount does not include pension however the entire amount (same as employee contribution) would be received if widrawen. Please advise if true.
From India, Mumbai
From India, Mumbai
First you need to go to your Salary slips for deduction of EPF amount and check what amount has been deducted from your salary. Hope you know the deduction rule. Employers contribution to PF is part of the CTC.
Employers are required by the PF Act to match the statutory contribution to PF. i.e. 12% (10% in some industries) of basic (which includes DA) i.e. if you contribute 12000 per month on a salary of Rs 100000 per month then employer also contributes same amount. It is statutory requirement.
If the employee, however, decides to contribute more than the statutory % then the employee can do so. Employer is not required to match the additional amount over and above the statutory % and no employer normally does that.
For more about EPF info see EPFO <link updated to site home>
And
About the statement what Employer has made, first I would suggest you to go to your salary slip for cross checking and need to meet your HOD-HR. There is something which is not clear actually..
For more or to get salary details that are offering in India to us, visit below websites where you can have the surveys. Im the official member of this site and im sure this will help you more in your mission….
www.Paycheck.in
PayScale - Free Compensation Reports
From India, Gurgaon
664Employers are required by the PF Act to match the statutory contribution to PF. i.e. 12% (10% in some industries) of basic (which includes DA) i.e. if you contribute 12000 per month on a salary of Rs 100000 per month then employer also contributes same amount. It is statutory requirement.
If the employee, however, decides to contribute more than the statutory % then the employee can do so. Employer is not required to match the additional amount over and above the statutory % and no employer normally does that.
For more about EPF info see EPFO <link updated to site home>
And
About the statement what Employer has made, first I would suggest you to go to your salary slip for cross checking and need to meet your HOD-HR. There is something which is not clear actually..
For more or to get salary details that are offering in India to us, visit below websites where you can have the surveys. Im the official member of this site and im sure this will help you more in your mission….
www.Paycheck.in
PayScale - Free Compensation Reports
From India, Gurgaon
Dear Mr.Arora,
Thank you for your prompt response.
1) the epf statement was on am EPF letterhead statement summery
2) there is no discrepancy in employee contribution
3) under employer contribution does a portion of it go to Family pension fund contribution?
From India, Mumbai
Thank you for your prompt response.
1) the epf statement was on am EPF letterhead statement summery
2) there is no discrepancy in employee contribution
3) under employer contribution does a portion of it go to Family pension fund contribution?
From India, Mumbai
Out of the Employers Contribution, 8.33% goes towards the pension scheme and only the remaining 3.67% is reflected in the PF Statement. In case you discontinue after changing jobs and you are not subscribing for EPF and you withdrawal the amount in the EPF, the pension amount (8.33% pm) is added to your PF for withdrawal.
Rajusiachen
From India, Coimbatore
Rajusiachen
From India, Coimbatore
Thanks a lot guys hats off to you.
Once last query, if i change my job and request the current employer to transfer and not widrawing but the new employer does not offer PF facilities for how long will the EPF hold on to the account.
1) do you recommend that i withdraw the amount on this
case
2) if i withdraw would there be a income tax implication (employment 2.7 years)
Reg,
Shaun
From India, Mumbai
Once last query, if i change my job and request the current employer to transfer and not widrawing but the new employer does not offer PF facilities for how long will the EPF hold on to the account.
1) do you recommend that i withdraw the amount on this
case
2) if i withdraw would there be a income tax implication (employment 2.7 years)
Reg,
Shaun
From India, Mumbai
I do have a disagreement with Anil Arora. let me reproduce the area of disagreement here:
"Employers are required by the PF Act to match the statutory contribution to PF. i.e. 12% (10% in some industries) of basic (which includes DA) i.e. if you contribute 12000 per month on a salary of Rs 100000 per month then employer also contributes same amount. It is statutory requirement."
As per statute it is not mandatory that the employer's share should be equal to employees share. The employer, on the other hand, can restrict his share of contribution to rs 780, ie, 12% of Rs 6500. Therefore, if an employee's basic + DA is Rs 100000, and he is contributing Rs 12000, being 12%, the employer is not under a legal obligation to contribute the same Rs 12000 but can restrict it to 12% of Rs 6500.
Now, the PF contribution slip will not display the employer's contribution of 8.33% since it is separately accounted as Pension Fund. Therefore,your PF slip will show only Provident Fund contribution of 12% of employee's and 3.67% opf employer's shares.
Regards,
Madhu.T.K
From India, Kannur
"Employers are required by the PF Act to match the statutory contribution to PF. i.e. 12% (10% in some industries) of basic (which includes DA) i.e. if you contribute 12000 per month on a salary of Rs 100000 per month then employer also contributes same amount. It is statutory requirement."
As per statute it is not mandatory that the employer's share should be equal to employees share. The employer, on the other hand, can restrict his share of contribution to rs 780, ie, 12% of Rs 6500. Therefore, if an employee's basic + DA is Rs 100000, and he is contributing Rs 12000, being 12%, the employer is not under a legal obligation to contribute the same Rs 12000 but can restrict it to 12% of Rs 6500.
Now, the PF contribution slip will not display the employer's contribution of 8.33% since it is separately accounted as Pension Fund. Therefore,your PF slip will show only Provident Fund contribution of 12% of employee's and 3.67% opf employer's shares.
Regards,
Madhu.T.K
From India, Kannur
Actually the question came from a doubt of less contribution by Employer and also the HR peoples are not ready to clear his doubts.
Well this is to bring into your kind notice that other member also have mentioned the same that you have used…“the PF contribution slip will not display the employer's contribution of 8.33% since it is separately accounted as Pension Fund.” and I have never denied this....also I have enclosed the weblink of official website of EPF for more clarification and details. I just gave him the basic and required information...
And im going to disclose some more information on EPF including EPS and EDLIS with the rates and calculation examples and hope that wud be enough to clear all doubts here by you and all other member.
Well thanks for raising your questions
From India, Gurgaon
Well this is to bring into your kind notice that other member also have mentioned the same that you have used…“the PF contribution slip will not display the employer's contribution of 8.33% since it is separately accounted as Pension Fund.” and I have never denied this....also I have enclosed the weblink of official website of EPF for more clarification and details. I just gave him the basic and required information...
And im going to disclose some more information on EPF including EPS and EDLIS with the rates and calculation examples and hope that wud be enough to clear all doubts here by you and all other member.
Well thanks for raising your questions
From India, Gurgaon
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
EPF ON LINE REGN. USER MANUAL.pdf