Your compay is paying PF Contribution of 12% on Rs.6500, which is wage ceiling as per PF act. In such cases, an employer is not required to pay his own share of contribution above the wage ceiling of Rs.6500/-
From India, Bangalore
From India, Bangalore
the company is calculating pf only on Rs. 6500/- i.e. the maximum limit for which pf is compulsory....... after that it is optional or as per company policy... whether to give pf or not.
From India, Mumbai
From India, Mumbai
Hai As per P.F. Act maximum liability Of employer Is 780.00 On maximum ceiling 6500 So it is organisation s volutarily if they interseted more than It No law Inforcement. regards Ashish
From India, Velluru
8From India, Velluru
If the basic exceed 6500/- then the PF deduction are deposited with a company Pf fund, if the PF is calculated on basic of Rs.34000/- then it will be deposited with the fund else vice-versa. Ur company may not have the above said fund.
Amrender
From India, New Delhi
Amrender
From India, New Delhi
Kushal PS Mahur
9717482231
Dear sir,
I want to know about notice period. in our co. we have notice period of 3 months or we have to pay salary of 3 months. in this situation what will be the salary? is it basic only or they count all allowances? Is there any law for that ?
Pl. help.
Hiren
From India, Vadodara
9717482231
Dear sir,
I want to know about notice period. in our co. we have notice period of 3 months or we have to pay salary of 3 months. in this situation what will be the salary? is it basic only or they count all allowances? Is there any law for that ?
Pl. help.
Hiren
From India, Vadodara
Section 6 of the Employees Provident Fund & Miscellaneous Provisions Act says:
Section 6. Contributions and matters which may be provided for in Schemes. – The contribution which shall be paid by the employer to the Fund shall be ten percent. Of the basic wages, dearness allowance and retaining allowance, if any, for the time being payable to each of the employees whether employed by him directly or by or through a contractor, and the employee’s contribution shall be equal to the contribution payable by the employer in respect of him and may, if any employee so desires, be an amount exceeding ten percent of his basic wages, dearness allowance and retaining allowance if any, subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section:
Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words “ten percent”, at both the places where they occur, the words “12 percent” shall be substituted:
Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme may provide for rounding off of such fraction to the nearest rupee, half of a rupee, or quarter of a rupee.
Explanation I – For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.
Explanation II. – For the purposes of this section, “retaining allowance” means allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.
I hope this will explain the whole scenario to you. you can get your contribution enhanced to whatever you like but the Employer's contribution shall restrict to Rs. 780.00 unless employer also agree to contribute a higher amount.
From India, Chandigarh
Section 6. Contributions and matters which may be provided for in Schemes. – The contribution which shall be paid by the employer to the Fund shall be ten percent. Of the basic wages, dearness allowance and retaining allowance, if any, for the time being payable to each of the employees whether employed by him directly or by or through a contractor, and the employee’s contribution shall be equal to the contribution payable by the employer in respect of him and may, if any employee so desires, be an amount exceeding ten percent of his basic wages, dearness allowance and retaining allowance if any, subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section:
Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words “ten percent”, at both the places where they occur, the words “12 percent” shall be substituted:
Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme may provide for rounding off of such fraction to the nearest rupee, half of a rupee, or quarter of a rupee.
Explanation I – For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.
Explanation II. – For the purposes of this section, “retaining allowance” means allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.
I hope this will explain the whole scenario to you. you can get your contribution enhanced to whatever you like but the Employer's contribution shall restrict to Rs. 780.00 unless employer also agree to contribute a higher amount.
From India, Chandigarh
Dear,
Above mention by sharma sunil is right if Basice more than 6500/ or muchmore then pf will be calculated on the same if employer want and their will.
In this case basis is 34000/ then accordingly 12% will be done but 8.33% means amount 541 is the maximum amount which is payable for pension and rest will be added with EPF.
Hope it will clear if not just
From India, Jhajjar
Above mention by sharma sunil is right if Basice more than 6500/ or muchmore then pf will be calculated on the same if employer want and their will.
In this case basis is 34000/ then accordingly 12% will be done but 8.33% means amount 541 is the maximum amount which is payable for pension and rest will be added with EPF.
Hope it will clear if not just
From India, Jhajjar
PF act is applicable only for Rs. 6500 & act says that employer liability is to pay PF is only for Rs. 6500
Employer have some choices if employees basic is more then Rs6500
· He can deduct PF on actual basic Like u have Rs. 34000
· He can deduct PF on 6500
· Or he can not deduct PF because PF act is applicable only on Rs 6500 act did not says to deduct pf on basic above then Rs6500 its not mandatory.
But Sir keep In our mind that the above conduction are applicable only when ur PF Basic is more then Rs6500
THanks
Kudeep SHarma
+91 9910148454
From India, Delhi
Employer have some choices if employees basic is more then Rs6500
· He can deduct PF on actual basic Like u have Rs. 34000
· He can deduct PF on 6500
· Or he can not deduct PF because PF act is applicable only on Rs 6500 act did not says to deduct pf on basic above then Rs6500 its not mandatory.
But Sir keep In our mind that the above conduction are applicable only when ur PF Basic is more then Rs6500
THanks
Kudeep SHarma
+91 9910148454
From India, Delhi
its all apon company policy,,, but as per rules maximum basicsalary for pf deduction is 6500///
From India, Surat
From India, Surat
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.
SALARY with out PF Deduction.xls
PF deduction on leave encashment.doc