Hi everyone, In our organisation, we haven't followed the Rs 1800 PF deduction slab but have gone with 12% on Basic for both employer and employee contribution. We have many who come back asking their PF to be limited to Rs 1800. We would like to make a org wide change to implement the policy. Is there any process to be followed to switch to this? Also- if people want to continue contributing more, is there a different process?
Thanks in advance.
Shwetha
From India, Bangalore
3Thanks in advance.
Shwetha
From India, Bangalore
It is always better to contribute higher side PF contribution both by employer and employee. Try to convince the employees stating that upper side contribution is force savings and interest on PF accumulation is ITAX free as per rule. The overall effect is gain by the employee. Better to continue the existing system of higher side PF contribution both by employer and employee.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
Hi Shwetha.Spring,
Make it clear to the employees that this is a type of benefit provided by the employer. Because the employer can limit the ceiling to 1800. However, if they contribute 12% to the actual basic, it is a benefit just for the employees. You can also show them some calculations to persuade them further. Assume the basic salary of a certain employee is 30,000. If the cap is set at 1800, they could have 43200 + interest added to their pf + pension, but if they pay 12% of the actual basic, they could save 86,400 + interest in their pf annually.
Regards
Gowtham
8825610576
From India, Madurai
Make it clear to the employees that this is a type of benefit provided by the employer. Because the employer can limit the ceiling to 1800. However, if they contribute 12% to the actual basic, it is a benefit just for the employees. You can also show them some calculations to persuade them further. Assume the basic salary of a certain employee is 30,000. If the cap is set at 1800, they could have 43200 + interest added to their pf + pension, but if they pay 12% of the actual basic, they could save 86,400 + interest in their pf annually.
Regards
Gowtham
8825610576
From India, Madurai
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