Hi,
To have the fundamental understanding on the new pf rule, I want to understand on whether the maximum deduction for an employee is set as 12% of 15000 or the 12% of basic salary. Kindly clarify it for the case of mine, where Basic is 16420, AGP is 6000 and PF is 10089.
If the limit is set to 12% of 15000, do I have the liberty to add voluntary PF to the deducted amount?
Thanks in advance.
Regards,
Karthikeyan
From India, Trichy
To have the fundamental understanding on the new pf rule, I want to understand on whether the maximum deduction for an employee is set as 12% of 15000 or the 12% of basic salary. Kindly clarify it for the case of mine, where Basic is 16420, AGP is 6000 and PF is 10089.
If the limit is set to 12% of 15000, do I have the liberty to add voluntary PF to the deducted amount?
Thanks in advance.
Regards,
Karthikeyan
From India, Trichy
Dear Mr.Naveen,
You are correct that the statement of account in Form No.23 shall reflect only towrds Provident Fund of both employees and employers contribution. But no where in the scheme the amount of contribution by the employer towards EPS does not indicate. Because this is a Head of account maintained by the EPFO under EPS scheme. Irrespective any body's contributions the pension amount will be paid top the employee only after attasining the age opf 58 years after retirement of the services. Earlier there was no minimum. Now the minimum 1000 is fixed. If a employee is getting less than this as per the formula and then it will be applicable as 1000. The maximum pension shall be arrived only after the retirement of the employee subject to his pensionable service and pensionable salary. For this a formula has been made by the EPFO. Based on this formula the pension is being fixed and paid to the employee till his/her death and afterwards his/her nominee as per then option mentioned in the Form No.10D of the scheme.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant
From India, Bidar
150You are correct that the statement of account in Form No.23 shall reflect only towrds Provident Fund of both employees and employers contribution. But no where in the scheme the amount of contribution by the employer towards EPS does not indicate. Because this is a Head of account maintained by the EPFO under EPS scheme. Irrespective any body's contributions the pension amount will be paid top the employee only after attasining the age opf 58 years after retirement of the services. Earlier there was no minimum. Now the minimum 1000 is fixed. If a employee is getting less than this as per the formula and then it will be applicable as 1000. The maximum pension shall be arrived only after the retirement of the employee subject to his pensionable service and pensionable salary. For this a formula has been made by the EPFO. Based on this formula the pension is being fixed and paid to the employee till his/her death and afterwards his/her nominee as per then option mentioned in the Form No.10D of the scheme.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant
From India, Bidar
In view of recent judgment by Hon'ble Supreme Court of India; What is the legal position for calculation of pension if employee's actual salary has been above Rs. 15000/- Will it benefit employees who have retired & withdrawn their PF contribution?
From United Kingdom, Bedford
From United Kingdom, Bedford
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