Dear All,
I've joined a new org in Chennai where they calculate 12% PF on basic only upto Rs. 6500 (as per law), whereas in my previous org in Mumbai we use to calculate 12%PF on the whole basic of the employee.
Why is there a difference ?
Can anyone help me by clarifying my doubt.
Thanks in advance !
Regards,
Sathya
From India, Coimbatore
3I've joined a new org in Chennai where they calculate 12% PF on basic only upto Rs. 6500 (as per law), whereas in my previous org in Mumbai we use to calculate 12%PF on the whole basic of the employee.
Why is there a difference ?
Can anyone help me by clarifying my doubt.
Thanks in advance !
Regards,
Sathya
From India, Coimbatore
Dear SatyaLaxmi company is bounded to deduct PF maximum on 6500 Rs i.e. 780 Rs to deduct on more salary in wish of the company
From India, Faridabad
From India, Faridabad
Dear Mahesh, Thanks for the reply, but i would like to know which is a better option. As in which will be more beneficial to the employees. Many Thanks! Sathya
From India, Coimbatore
From India, Coimbatore
Dear sathya Deducting on whole basic salary is beneficial to employees. Since they will get more fund comparing to other method of deduction Regards Boona
From India, New Delhi
From India, New Delhi
Dear Sathyalakshmi
As per EPF ACT, basic salary cieling is Rs.6500/-It is compulsory one but above Rs6500/ managamement is willingness & option.If perivious organisation contributed on whole salry,it depends upon the management's consent
Regards
V.Subbarao
From India, Madras
As per EPF ACT, basic salary cieling is Rs.6500/-It is compulsory one but above Rs6500/ managamement is willingness & option.If perivious organisation contributed on whole salry,it depends upon the management's consent
Regards
V.Subbarao
From India, Madras
Dear sathya Deducting on whole basic salary is beneficial to employees. Since they will get more fund comparing to other method of deduction.
From India, Faridabad
From India, Faridabad
Dear Sathyalakshmi,
You can deduct PF on whole basic or even whole salary (at the discretion of yourcompany) But as per law
the salary ceiling is fixed as 6500/- (likely to be enhanced as 15000/-).
Thanks
R K Nair
From India, Aizawl
You can deduct PF on whole basic or even whole salary (at the discretion of yourcompany) But as per law
the salary ceiling is fixed as 6500/- (likely to be enhanced as 15000/-).
Thanks
R K Nair
From India, Aizawl
PF deduction ceiling on the wage/salary of Rs.6500/- as per Act.
The said deduction is a must.
Regarding deduction of PF more than Rs.6500/- will be at the discretion of the management based on their financial position.
This will not be a must but voluntary.
From India, Hyderabad
The said deduction is a must.
Regarding deduction of PF more than Rs.6500/- will be at the discretion of the management based on their financial position.
This will not be a must but voluntary.
From India, Hyderabad
In case the basic salary is more then Rs 6500 then PF deduction is not mandatory. The company will make the employ sign FORM 11 thus there will be ZERO contribution towards PF. However employ moving from another company where he was paying PF then it is mandatory for the new company to deduct and contribute Rs 780 on the mandatory limit of Rs 6500. This is as per compliance.
From India, Noida
From India, Noida
Dear Madam
My on take on this, components of salary being implemented in your organisation is very important to know exactly on whether the deduction should be done on Basic or Basic & DA ( if given).
Likewise, on coverage part, maximum to Rs.6500/- can be deducted @ 12% from employee, however giving more than this is Management Discretion. However, if say the basic is Rs.8000/- & and PF is being deducted @ 12%, which would be 960, this cannot be reduced subsequently.
Hope this helps
S.S.Rao
From India, Visakhapatnam
My on take on this, components of salary being implemented in your organisation is very important to know exactly on whether the deduction should be done on Basic or Basic & DA ( if given).
Likewise, on coverage part, maximum to Rs.6500/- can be deducted @ 12% from employee, however giving more than this is Management Discretion. However, if say the basic is Rs.8000/- & and PF is being deducted @ 12%, which would be 960, this cannot be reduced subsequently.
Hope this helps
S.S.Rao
From India, Visakhapatnam
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Basic 4 pf.pdf