hi..I am heading a college n getting frequent notice from the PF department to enroll my employees in PF fund. majority of my faculties r earning 7,500 or more than per month. now according to the act is it a compulsion to deduct the amount from their salary though they r earning more than 6,500? do i have any escape over not deducting PF from their salaries?
Rachana
From India, Ahmadabad
Rachana
From India, Ahmadabad
Dear Rachna,
If you have more than 20 employees in your organisation then you must register it with the PF..
And moreover you have not clarified that whether their gross salary is more than 6500/- or basic.. as PF applies over Basic salary.. and ceiling is 6500/- basic salary per month.
Regards,
Amit Seth.
From India, Ahmadabad
496If you have more than 20 employees in your organisation then you must register it with the PF..
And moreover you have not clarified that whether their gross salary is more than 6500/- or basic.. as PF applies over Basic salary.. and ceiling is 6500/- basic salary per month.
Regards,
Amit Seth.
From India, Ahmadabad
Hi Rachna, I am absolutely agreed with Mr. Amit. However it is not necessary to deduct PF from the salary exceed Rs. 6,500/- (Basic only). Regards, Devender Kr. Sharma
From India, Delhi
From India, Delhi
Hi Amith,
As you have mentioned if an establishment is having more than 20 employees then it should deducted PF.
But as per law there is no minimum or maxim ceiling of salary in the PF
for example if an employee drawing a salary of Rs.6500 of which if rs.2000 is basic then he need to deduct 12% pf on basic
The same 12% has to be contributed by the employer.
If an employee get the rem in the name of salary then the employer needs to deduct PF and also to contribute.
If he pays as a retainer fee or consultation fee then there is no obligation of PF
Regards
J Udhay Attvar
From India, Madras
As you have mentioned if an establishment is having more than 20 employees then it should deducted PF.
But as per law there is no minimum or maxim ceiling of salary in the PF
for example if an employee drawing a salary of Rs.6500 of which if rs.2000 is basic then he need to deduct 12% pf on basic
The same 12% has to be contributed by the employer.
If an employee get the rem in the name of salary then the employer needs to deduct PF and also to contribute.
If he pays as a retainer fee or consultation fee then there is no obligation of PF
Regards
J Udhay Attvar
From India, Madras
hi..herewith i m clarifying my previous question...ya i have staff of more than 20. as earlier i mentioned most of them are earning beyond 7.500 per month. i am aware that pf can be deducted from basic+DA+retainin allowance (if any). but in my case 7,500 is a fix salary given by the Government only without any break up. so the amount is 7.500 fix. now on this is it a compulsion to deduct pf of employees? also let me know according to which provision/section u r justifying answer.
regards
Rachana
From India, Ahmadabad
regards
Rachana
From India, Ahmadabad
Dear amith/Rancha
pl find attached a detailed document for PF-employer contribution
As i mentioned earlier if it is paid as a stipend/consolidate pay then there is no need to deduct PF from the employee and also no need to contribute.
If it has given as salary get the breakup like basic+da+allowance
And deduct 12% on basic+da and employer to contribute the same amount.
The 6500 limit is only for the EPF (employee pension fund) not for PF
From India, Madras
pl find attached a detailed document for PF-employer contribution
As i mentioned earlier if it is paid as a stipend/consolidate pay then there is no need to deduct PF from the employee and also no need to contribute.
If it has given as salary get the breakup like basic+da+allowance
And deduct 12% on basic+da and employer to contribute the same amount.
The 6500 limit is only for the EPF (employee pension fund) not for PF
From India, Madras
Dear Member,
The salay of your staff may be more than, 6500/- What is the salary structure that you are having is taken in to account. Basic+DA only considered for EPF contribution. If the Basic and DA is more than 6,500/-p.m you can seek exemption under the EPF ACt.
Murugavel.B
Chennai.
From India, Madras
The salay of your staff may be more than, 6500/- What is the salary structure that you are having is taken in to account. Basic+DA only considered for EPF contribution. If the Basic and DA is more than 6,500/-p.m you can seek exemption under the EPF ACt.
Murugavel.B
Chennai.
From India, Madras
ya thanks for the reply. so as per you being an employer in this case i have expesion in deducting pf. but plz tell me under which provision i m exmpted as i need to prove this Rachana
From India, Ahmadabad
From India, Ahmadabad
Hi
I agree with all the replies. It is not neccessary to deduct PF if the employees gross is more than Rs. 6500/-. It is employees wish, so you can get a letter from employee stating that he don't want to deduct pf from his salary as his gross exceeds the limit.
Thanks,
Sridevi G
I agree with all the replies. It is not neccessary to deduct PF if the employees gross is more than Rs. 6500/-. It is employees wish, so you can get a letter from employee stating that he don't want to deduct pf from his salary as his gross exceeds the limit.
Thanks,
Sridevi G
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.
HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls