Dear All.. Need ur help
A company has a policy of deducting PF as well as contributing PF upto Basic of 15000/- only (Even for basic exceeding 15000/-)
Now there is a new joinee (who was never previously covered in PF) in Mar'15 with Basic of Rs.40000/-
His PF is deducted on 15000/- My quesn is whether his Pension will be deducted or not??
Pls reply..
A company has a policy of deducting PF as well as contributing PF upto Basic of 15000/- only (Even for basic exceeding 15000/-)
Now there is a new joinee (who was never previously covered in PF) in Mar'15 with Basic of Rs.40000/-
His PF is deducted on 15000/- My quesn is whether his Pension will be deducted or not??
Pls reply..
There is no Pension deduction. As per new guidelines, for a new employee who has never been a PF member in the past and whose salary is above Rs 15000, both the employee’s and employer’s shares of contribution should be deposited into the Provident Fund without bifurcating it in to PF and Pension Fund. But in your case, the PF qualifying salary itself is Rs 15000 which is within the limits. It is immaterial if his salary is Rs 40000. What is disclosed is the PF qualifying salary and that is Rs 15000 and therefore, I believe that you have to bifurcate employer’s share of contribution into Pension Fund at the rate of 8.33% on 15000 and the remaining into Provident Fund.
Regards,
Madhu.T.K
From India, Kannur
4250Regards,
Madhu.T.K
From India, Kannur
Thanks sir for the reply.
Sir wud also request your guidance in a bit different case as below : -
If a company has a policy of deducting PF on entire Basic component (even if it exceeds 15000/-) of the employee BUT the company is contributing only upto present prescribed limit of 15000/-
Now if there is a new joinee (who was never previously covered in PF) in Mar'15 with Basic of Rs.40000/-
His PF will be deducted on 40000/-
But whether his Pension will be bifurcated in this case on 15000/-?
Sir wud also request your guidance in a bit different case as below : -
If a company has a policy of deducting PF on entire Basic component (even if it exceeds 15000/-) of the employee BUT the company is contributing only upto present prescribed limit of 15000/-
Now if there is a new joinee (who was never previously covered in PF) in Mar'15 with Basic of Rs.40000/-
His PF will be deducted on 40000/-
But whether his Pension will be bifurcated in this case on 15000/-?
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 Pension.xls
EPF - Pension contribution is zero WHY.jpg