Hi Seniors, Please suggest to me, If any employee gross salary 80000/- so his basic salary 40000/-. So can I deduct the EPF on 15000/- basic salary or 40000/- basic plz suggest.
From India
1From India
EPF is optional for individuals drawing a salary of more than Rs.15,000 per month.
From India, Jaipur
From India, Jaipur
PF is deducted at 12% of Wages subject to a maximum wage limit of ₹ 15,000
Therefore, you need to deduct PF on 15,000 only.
If the employee wishes to deduct 12% of the full basic and da, he has to give a request for voluntary deductions. The company need not pay additional amount beyond the statutory limit.
Let me also make it clear. PF is not exempt for those drawing salary beyond 15,000.
They are exempt only if they join your organisation at a salary of above 15,000 and does not have any PF account at the time of joining, and also they opt for being exempt.
From India, Mumbai
Therefore, you need to deduct PF on 15,000 only.
If the employee wishes to deduct 12% of the full basic and da, he has to give a request for voluntary deductions. The company need not pay additional amount beyond the statutory limit.
Let me also make it clear. PF is not exempt for those drawing salary beyond 15,000.
They are exempt only if they join your organisation at a salary of above 15,000 and does not have any PF account at the time of joining, and also they opt for being exempt.
From India, Mumbai
You can deduct PF either on the whole amount paid to the employee, ie, Rs 80000, or on the part of it described as basic pay, ie, Rs 40000 or on Rs 15000. If you deduct and contribute PF on 15000 in respect of an employee who is paid more than Rs 15000, the PF will not raise any question because PF cannot be demanded on an amount exceeding Rs 15000 though the employer can very well contribute PF on any amount without any limit. Therefore, decision to deduct and contribute PF in respect of an employee whose salary exceeds Rs 15000 is purely a managerial decision.
From India, Kannur
From India, Kannur
Sir An employee getting gross salary Rs 17000/- and his basic is 10000/- on which amount PF should be deducted in basic or PF ceiling limit ? gskumar
From India, Jaipur
From India, Jaipur
if we appoint a employee of above 50yrs first time in EPF UAN, Whether he is applicable for the Family pension contribution .
From India, Guruvayur
From India, Guruvayur
If Employer contribution is 1,800 for above 15,000 salary staff then what is the employee is contribution for example 21000 is the basic salary means employer share is 1,800 what is the employee share shall i take it 21000 X 12% = 2,520 is correct or 1,800 please clarify
From India, Chennai
From India, Chennai
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.
Introduction Of One Employee One EPF Account Facility.pdf