Dear Senior,
Greetings..
My query is if any employee basic salary is 26000/-per month and he want to contribute to PF @ 20000/- per month PF wage. Is it possible...?
As per my concern if basic is >6500/- per month than it is possible but I am not so clear. If it is not possible than kindly refer the law.
Best Regards
Manish
From India, Bangalore
Contributing Member
11Greetings..
My query is if any employee basic salary is 26000/-per month and he want to contribute to PF @ 20000/- per month PF wage. Is it possible...?
As per my concern if basic is >6500/- per month than it is possible but I am not so clear. If it is not possible than kindly refer the law.
Best Regards
Manish
From India, Bangalore
Contributing Member
Dear Manish,
first let me know your company policy
1) as some companies will deduct the PF @ 12% even the basic+da more then 6500/- ( the same amount will be added by the employer ).
2) some companies deducts only for the slab level i.e 780/- (on 6500 max) even the basic+da is more then 6500/-
if any employee wants to contribute more than the slab level they can do in VPF process.
so please check under VPF process.
Regards,
Viswanadh
From India, Hyderabad
Contributing Member
first let me know your company policy
1) as some companies will deduct the PF @ 12% even the basic+da more then 6500/- ( the same amount will be added by the employer ).
2) some companies deducts only for the slab level i.e 780/- (on 6500 max) even the basic+da is more then 6500/-
if any employee wants to contribute more than the slab level they can do in VPF process.
so please check under VPF process.
Regards,
Viswanadh
From India, Hyderabad
Contributing Member
Dear Manish ji,
I am giving below Para 26 (6) verbatim and request the members to give the answer to your query in light of it .
"Notwithstanding any thing contained in this para, an officer not below the rank of APFC may, on joint request in writing, of any employee to which this scheme applies and his employer, enroll such employee as a member or allow him to contribute more than Rs. 6500 of his pay pm if he is already a member of Fund and thereupon such employee shall be entitled to the benefits and shall be subject to the conditions of the Fund, provided that the employer gives an undertaking in writing that he shall pay the admn charges payable and shall comply with all statutory provisions in respect of such employee."
Members of the forum respond with out referring the provisions of Law, except two or three. Therefore, I thought to give the relavant provision.
From India, Mumbai
Most Appreciated Member
I am giving below Para 26 (6) verbatim and request the members to give the answer to your query in light of it .
"Notwithstanding any thing contained in this para, an officer not below the rank of APFC may, on joint request in writing, of any employee to which this scheme applies and his employer, enroll such employee as a member or allow him to contribute more than Rs. 6500 of his pay pm if he is already a member of Fund and thereupon such employee shall be entitled to the benefits and shall be subject to the conditions of the Fund, provided that the employer gives an undertaking in writing that he shall pay the admn charges payable and shall comply with all statutory provisions in respect of such employee."
Members of the forum respond with out referring the provisions of Law, except two or three. Therefore, I thought to give the relavant provision.
From India, Mumbai
Most Appreciated Member
Dear friends,
In addition to what is stated by others -
While an employee can subscribe, (its to be called as voluntary subscription) > Rs.780/- being 12% of Rs.6500/- the maximum salary covered for PF, the same employer cannot be compelled to contribute equivalent or match the subscription of the employee over and above Rs.780/-. In other words the employer will restrict his contribution @ 12% of Rs.6500/- only.
kumar.s.
From India, Bangalore
Contributing Member
In addition to what is stated by others -
While an employee can subscribe, (its to be called as voluntary subscription) > Rs.780/- being 12% of Rs.6500/- the maximum salary covered for PF, the same employer cannot be compelled to contribute equivalent or match the subscription of the employee over and above Rs.780/-. In other words the employer will restrict his contribution @ 12% of Rs.6500/- only.
kumar.s.
From India, Bangalore
Contributing Member
Thank you very much Keshav for your guidance. As per Para 26 (6) & Para 26 A of EPF the employer contribute to PF is limited to 12% of 6500/- and employer not liable to contribute on the wages exceeding 6500/- per month. The employee will contribute on his higher salary exceeding Rs. 6500/- but a prior permission is required from not below the rank APFC and a undertaking has to be given by the employer that he will continue to pay the administrative charges on such higher wages.
Thanks to all member to put here their view.
Manish
From India, Bangalore
Contributing Member
Thanks to all member to put here their view.
Manish
From India, Bangalore
Contributing Member
Sir,
I am Working in MNC(SEO) company. I dont know clearly my PF and Other deductions as per company rules that is the reason i am adding my salary attachment details can you tell me the details of this is right or wrong. i did not take any loans and borrow from my company.
From India, Hyderabad
I am Working in MNC(SEO) company. I dont know clearly my PF and Other deductions as per company rules that is the reason i am adding my salary attachment details can you tell me the details of this is right or wrong. i did not take any loans and borrow from my company.
From India, Hyderabad
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf