If one employee draws more than $15,000 as a basic salary and resigns between the months or is absent, what will be the EPF salary calculation? The maximum basic salary of $15,000 will be calculated based on the present days or the original basic salary, which is under $15,000 in that month.
From India, Kochi
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1From India, Kochi
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Hi Vinod it will be calculated to earned basic salary . Regards Prabu M
From India, Chennai
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From India, Chennai
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So if earned basic salary above 15000 we have to take 15000 itself right.
From India, Kochi
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From India, Kochi
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PROVIDENT FUND (PF)
Employees’ Provident Fund is a small saving scheme that is offered to Indian workers as well as international workers through the EPFO of India. The scheme allows accumulation of funds as well as accrual of interest on the accumulated funds. The funds thus collected are made of contributions partly from employees and partly from their employers.
Contributions from employees as well as employers add to the EPF. However, unlike what is commonly thought to be, the entire portion of contribution from an employer doesn’t go exclusively towards the Employees Provident Fund.
Division of funds
1. 12% of Basic Salary and standard allowance of Employee goes directly towards Employees’ Provident Fund.
2. 13% of Basic Salary and standard allowance of Employer is divided as follows –
o 3.67% of contribution towards Employees’ Provident Fund
o 0.5% of contribution towards EPF Administration Charges
o 0.5% of contribution towards EDLI Administration Charges
o 8.33% of contribution towards Employees’ Pension Scheme
Minimum salary limits: Employees with monthly salaries less than or equal to INR 15,000 now have to contribute mandatory towards EPF. PF amount is calculated for the basic amount. PF will be calculated as 12% of the basic.
Provident Fund Calculator
Basic Pay
25000 /Month
PF Contribution
Employee
12% of 15,000: ₹1,800.00
Employer
13% of 15,000: ₹1,950.00
Total
₹3,750.00
From India
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Employees’ Provident Fund is a small saving scheme that is offered to Indian workers as well as international workers through the EPFO of India. The scheme allows accumulation of funds as well as accrual of interest on the accumulated funds. The funds thus collected are made of contributions partly from employees and partly from their employers.
Contributions from employees as well as employers add to the EPF. However, unlike what is commonly thought to be, the entire portion of contribution from an employer doesn’t go exclusively towards the Employees Provident Fund.
Division of funds
1. 12% of Basic Salary and standard allowance of Employee goes directly towards Employees’ Provident Fund.
2. 13% of Basic Salary and standard allowance of Employer is divided as follows –
o 3.67% of contribution towards Employees’ Provident Fund
o 0.5% of contribution towards EPF Administration Charges
o 0.5% of contribution towards EDLI Administration Charges
o 8.33% of contribution towards Employees’ Pension Scheme
Minimum salary limits: Employees with monthly salaries less than or equal to INR 15,000 now have to contribute mandatory towards EPF. PF amount is calculated for the basic amount. PF will be calculated as 12% of the basic.
Provident Fund Calculator
Basic Pay
25000 /Month
PF Contribution
Employee
12% of 15,000: ₹1,800.00
Employer
13% of 15,000: ₹1,950.00
Total
₹3,750.00
From India
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Query:
As per provisions of the EPF (MP) Act, 1952, a member/worker who earns more than Rs 15,000 in wages in a month is exempt from the coverage of the PF and MP Act, 1952 by submitting Form 11 duly signed by the concerned worker. However, in certain cases, the employee works about 5 to 10 days in a month and earns wages of approximately Rs 10,000 per month. The employer or contractor is hesitant to remit the PF dues for that worker, citing that the worker has already submitted Form 11. What is the legal position?
Is there any guideline regarding exemption for workers who earn less than Rs 15,000 per month? Should the contractor remit PF for such workers, especially those earning around Rs 10,000 per month? In a salary month, how many days does a worker need to work to avail the benefit of exemption (Form 11)?
Your valuable reply is awaited.
P. Muralidharan
Baroda
From India, Vadodara
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As per provisions of the EPF (MP) Act, 1952, a member/worker who earns more than Rs 15,000 in wages in a month is exempt from the coverage of the PF and MP Act, 1952 by submitting Form 11 duly signed by the concerned worker. However, in certain cases, the employee works about 5 to 10 days in a month and earns wages of approximately Rs 10,000 per month. The employer or contractor is hesitant to remit the PF dues for that worker, citing that the worker has already submitted Form 11. What is the legal position?
Is there any guideline regarding exemption for workers who earn less than Rs 15,000 per month? Should the contractor remit PF for such workers, especially those earning around Rs 10,000 per month? In a salary month, how many days does a worker need to work to avail the benefit of exemption (Form 11)?
Your valuable reply is awaited.
P. Muralidharan
Baroda
From India, Vadodara
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls