Dear Ram,
If the salary on which PF is to be deducted exceeds Rs.6500.00 then you may not deduct PF at all, or deduct it on only 6500.00 or deduct it on full amount. All three posibilities exist.
You will have to first see on what amount PF was being deducted by previous employer because that becomes the lower limit. Suppose previous employer was not deducting any PF then employee can opt for any of the three choices(right of choice is with employee and not with the employer). If previous employer was deducting PF only on Rs. 6500.00, then employee can opt for either PF on Rs. 6500.00 or full amount.(choice of no PF deduction is not available in this case.).
If previous employer was deducting PF on full amount then now also it has to be done similarly and no choice exists with anybody.
KKT
From India, Delhi
13If the salary on which PF is to be deducted exceeds Rs.6500.00 then you may not deduct PF at all, or deduct it on only 6500.00 or deduct it on full amount. All three posibilities exist.
You will have to first see on what amount PF was being deducted by previous employer because that becomes the lower limit. Suppose previous employer was not deducting any PF then employee can opt for any of the three choices(right of choice is with employee and not with the employer). If previous employer was deducting PF only on Rs. 6500.00, then employee can opt for either PF on Rs. 6500.00 or full amount.(choice of no PF deduction is not available in this case.).
If previous employer was deducting PF on full amount then now also it has to be done similarly and no choice exists with anybody.
KKT
From India, Delhi
Hi Jony, Cud u pls explain furthur on this optional thing when an employee is declaring PF for the first time. Thanx Jenny
From India, Mumbai
From India, Mumbai
can anybody tell me that where can i get knowledge (practically as well as theoritical) about PF/ESIC/Pension/Graduity/Bonus regards manish
From India, Delhi
From India, Delhi
Dear Manish,
You have to go thru books on Labour and Industrial Laws which cover these topics.There are many writers like P.L.Malik, H L Kumar etc..These books (every act will have Act and then rules) may not cover state rules for which you may to buy additional books.
KKT
From India, Delhi
You have to go thru books on Labour and Industrial Laws which cover these topics.There are many writers like P.L.Malik, H L Kumar etc..These books (every act will have Act and then rules) may not cover state rules for which you may to buy additional books.
KKT
From India, Delhi
Hello, Limit for deducting PF is 6500/-. Inc ase one needs to deduct the PF on the higher basic then special permission from the PF department is to be obtained. Regards, Meeca
FPS is family pension scheme. In this account only 8.33% of basic goes. Means 8.33% of basic salay or 541 whichis less. 541 is 8.33% of 6500 which is the highest limit on which FPS can be deducted.
Regards
Regards
Dear Ram, FPS is Family pension scheme. 8.33% of 6500/- is equal to Rs. 541. hope I have made clear to you. Regards, Sashmita
From India, Delhi
From India, Delhi
Hi,
I am new to this community.
I have following queries related to P.F. provisions:
1) If an employee rejoins his employer without having withdrawn his P.FA. accumulations, whether employer can issue the same OLD P.F. number to the employee or the new number has to be issued?
2) If an employee whose Basic salary was more than Rs.8,000/- and was contributing P.F. on full Basic salary resigns and rejoins the same employer after 5-6 months without having closed his P.F. Account and the current Basic Salary of such employee is Rs.15,000/-. In this case, whether employee can opt for P.F. deduction to the extent of Rs.6,500/- or has to contribute on full Basic Salary?
3) In above (2), what is employer's legal obligation? Whether employer has to contribute on Full Basic Salary i.e. Rs.15,000/-?
4) In case of CTC Salary package where employer's P.F. contribution is also a part of CTC, is it possible for employer to deduct P.F. to the extent of Rs.6,500/- as the employee wants more take home salary?
5) Can employer restrict P.F. deduction to Rs.6500/- (Basic) even if the Employee's drawing Basic Salary more than Rs.6,500/-?
Regards,
Sanjeev
I am new to this community.
I have following queries related to P.F. provisions:
1) If an employee rejoins his employer without having withdrawn his P.FA. accumulations, whether employer can issue the same OLD P.F. number to the employee or the new number has to be issued?
2) If an employee whose Basic salary was more than Rs.8,000/- and was contributing P.F. on full Basic salary resigns and rejoins the same employer after 5-6 months without having closed his P.F. Account and the current Basic Salary of such employee is Rs.15,000/-. In this case, whether employee can opt for P.F. deduction to the extent of Rs.6,500/- or has to contribute on full Basic Salary?
3) In above (2), what is employer's legal obligation? Whether employer has to contribute on Full Basic Salary i.e. Rs.15,000/-?
4) In case of CTC Salary package where employer's P.F. contribution is also a part of CTC, is it possible for employer to deduct P.F. to the extent of Rs.6,500/- as the employee wants more take home salary?
5) Can employer restrict P.F. deduction to Rs.6500/- (Basic) even if the Employee's drawing Basic Salary more than Rs.6,500/-?
Regards,
Sanjeev
Hi Rakesh,
What is there as per law that is most important and legally bound on every employer not an individual's opinion.
In case an employee wish to contribute on his full basic salary which is more than Rs.6500/- and employer accepts the same, in this case employer too has to contribute on the same basic salary on which employee is contributing.
Pls correct me if I am wrong.
Regards,
Sanjeev
What is there as per law that is most important and legally bound on every employer not an individual's opinion.
In case an employee wish to contribute on his full basic salary which is more than Rs.6500/- and employer accepts the same, in this case employer too has to contribute on the same basic salary on which employee is contributing.
Pls correct me if I am wrong.
Regards,
Sanjeev
Mr. Sanjeeve,
1) If you have send form No. 10 after employee resign or terminating from your organisation then if he joins after some months it is mandatory to give him a new PF Account No.
This thing having some advantages & disadvantages. I am practical person with PF seeing a lot of cases happening in front of me.
2) If a employee having more than 6500 wages (basic + DA) at the date of joining can be excluded from PF.
3) If a employee wants to contribute to his full extent i.e. means on wages of 8000, he can contribute. But employer have no compulsion for that.
But my opinion to aviod this complexity you have to turn mind of employee for Voluntary Contribution for PF. Means, all emplooyees contributing at 12% with organisation. But a employee can be contribute more than that at eg. 20% or 30% contribution. It is really easy way for organisation to aviod complications.
eg. If A employee's wages is 5000 Rs., & he want to contribute at 20%.
from his wages 1000 Rs. will goest to PF, at that same time organisation will contribute 600 Rs.
More posts about clarification is welcome!
Regards
Prashant Patil
From India, Nagpur
1) If you have send form No. 10 after employee resign or terminating from your organisation then if he joins after some months it is mandatory to give him a new PF Account No.
This thing having some advantages & disadvantages. I am practical person with PF seeing a lot of cases happening in front of me.
2) If a employee having more than 6500 wages (basic + DA) at the date of joining can be excluded from PF.
3) If a employee wants to contribute to his full extent i.e. means on wages of 8000, he can contribute. But employer have no compulsion for that.
But my opinion to aviod this complexity you have to turn mind of employee for Voluntary Contribution for PF. Means, all emplooyees contributing at 12% with organisation. But a employee can be contribute more than that at eg. 20% or 30% contribution. It is really easy way for organisation to aviod complications.
eg. If A employee's wages is 5000 Rs., & he want to contribute at 20%.
from his wages 1000 Rs. will goest to PF, at that same time organisation will contribute 600 Rs.
More posts about clarification is welcome!
Regards
Prashant Patil
From India, Nagpur
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls