Dear Friends,
My Co. is paying PF on 12% Basic for all of its employees.
As now we have PF regulations for Expats also we have to pay for them too. My confiusion is - Can we pay PF only on 6500/- for expats working in our co or we have to deposit on 12% basic?
Kindly Advise
Regards,
Shilpi
From India, New Delhi
5My Co. is paying PF on 12% Basic for all of its employees.
As now we have PF regulations for Expats also we have to pay for them too. My confiusion is - Can we pay PF only on 6500/- for expats working in our co or we have to deposit on 12% basic?
Kindly Advise
Regards,
Shilpi
From India, New Delhi
EPF contribution for International Workers is 12% on the full amount of salary without reference to Rs 6500. For details please visit website of Employees Provident Fund Organisation.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear Mr.Madhu,
Thanks! for reply
Actually my confusion occurred from there only. I was also considering that their contribution will be on full salary but on EPF site in FAQs I read this statement. So want to know what other cos. are doing with their international worker?
Kindly advise.
FAQ read on EPF site:
15) Is there a cap on the salary up to which the employer’s share of contribution has to be diverted to EPS?
Yes, the cap on the salary up to which the employer’s share of contribution has to be diverted to EPS remains at Rs.6500. (Para 3 of EPS)
From India, New Delhi
Thanks! for reply
Actually my confusion occurred from there only. I was also considering that their contribution will be on full salary but on EPF site in FAQs I read this statement. So want to know what other cos. are doing with their international worker?
Kindly advise.
FAQ read on EPF site:
15) Is there a cap on the salary up to which the employer’s share of contribution has to be diverted to EPS?
Yes, the cap on the salary up to which the employer’s share of contribution has to be diverted to EPS remains at Rs.6500. (Para 3 of EPS)
From India, New Delhi
Yes, there is certainly a cap on salary for PENSION FUND (EPS and NOT EPF) contribution. It shall be understood like this. Total salary will qualify for Provident Fund and therefore 12% of salary shall be deducted from the salary of international worker and the contribution by the employer shall be made as:
8.33% of Rs 6500 to Pension Fund
Difference between the amount deposited in Pension Fund and the amount deducted from the employee (12%) shall be deposited in Provident Fund along with employees share of 12%.
Is it clear?
Madhu.T.K
From India, Kannur
8.33% of Rs 6500 to Pension Fund
Difference between the amount deposited in Pension Fund and the amount deducted from the employee (12%) shall be deposited in Provident Fund along with employees share of 12%.
Is it clear?
Madhu.T.K
From India, Kannur
It means that for eg: if basic is 50,000/- pm. 12% of this amount is 6000/- out of which 8.33% of 6500/- i.e.541 will be deposited in Pension Fund and rest 5458 in PF (employer contr) along with 6000/- contribution of pf of employee side.
Am I right?
Regards,
Shilpi
From India, New Delhi
Am I right?
Regards,
Shilpi
From India, New Delhi
Dear All
This is in ref to the PF Contribution on Expat salary.
Pl note contribution has to be deducted on total Salary ( Salary : as per definition of EPF Act )
With regards to Rs6500/- exemption, pl note they donot fall under the perview of the said definition ( exemption provided under the schedule ), hence its to be deducted on the full salary ( Salary : as per definition of EPF Act )
From India, Gurgaon
This is in ref to the PF Contribution on Expat salary.
Pl note contribution has to be deducted on total Salary ( Salary : as per definition of EPF Act )
With regards to Rs6500/- exemption, pl note they donot fall under the perview of the said definition ( exemption provided under the schedule ), hence its to be deducted on the full salary ( Salary : as per definition of EPF Act )
From India, Gurgaon
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PF withdrawal by expats.pdf