Dear All
I agree with Harsha's comment,
What the Act says the employer share is maximum amount of Rs.780 (6500 x 12%). Where in this issued raised for seeking opinion, whether Employer can reduce the amount and pay Rs.780/- as Employer share.
Here, the EPFO bifurcates the contribution of Employer and Employee. If Employer pays more than Rs.780/-, the excess amount will be deposited into Employees share.
Hence, in this particular case, the person raised this issue has to confirm that who the EPFO authorities bifurcated the amount paid by his management.
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From India, Kurnool
8I agree with Harsha's comment,
What the Act says the employer share is maximum amount of Rs.780 (6500 x 12%). Where in this issued raised for seeking opinion, whether Employer can reduce the amount and pay Rs.780/- as Employer share.
Here, the EPFO bifurcates the contribution of Employer and Employee. If Employer pays more than Rs.780/-, the excess amount will be deposited into Employees share.
Hence, in this particular case, the person raised this issue has to confirm that who the EPFO authorities bifurcated the amount paid by his management.
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From India, Kurnool
Dear sir, It is correctly said that EPFO dated 27/05/2014 not to force the employers to contribute over and above the statutory wage ceiling in respective of their employees.
From India, Chennai
From India, Chennai
Yes. It is not reducing the benefit. It is going according to the PF rules. It can be done by giving prior intimation to the employees. Nothing wrong.
From India, Hyderabad
From India, Hyderabad
Respected sir, am joining fresh employee in our company is my basic + da Rs.16000/- permonth is compulsory pay the epf contribution? is not pls enclosed any one circular copy
From India, Chennai
From India, Chennai
regarding pf/eps contribution of employer:When employee is contribution say 12% of his basic, say 50000, his amount of 6000(50000x12%) is credited to his pf account correctly.. As per the Act, the employer need to contribute equal amount. is it not?. Then in that case employer has to contribute rs.6000(out of this 1250(15000 maximum amount eligible for eps calculation x 8.33% ) will be marked for EPS and balance Rs.4750(6000-1250) . Please confirm whether this is correct or not?
point no.2 : is it possible for the employer to contribute in the above case only Rs,1800(15000x12%- 1250 for eps and 550 for pf of employer share) and not Rs.6000 eventhough the employee is contributing 6000. pls confirm what is the specific rule under which if there is any provision(please attach a copy of the same). Thanks
From India, Mumbai
point no.2 : is it possible for the employer to contribute in the above case only Rs,1800(15000x12%- 1250 for eps and 550 for pf of employer share) and not Rs.6000 eventhough the employee is contributing 6000. pls confirm what is the specific rule under which if there is any provision(please attach a copy of the same). Thanks
From India, Mumbai
Hi
Referring the circular shared by Pragnaa HR above, the max statutory salary limit on which contribution has to be made is 15000( or actual drawn salary whichever is less). I would suggest the following things to avoid any administrative hassle on monthly basis and to save your skin at the time of inspection.
I do not agree with making employee contribution on amount 20000 and employer contribution on amount 15000. Employer has to make an equivalent contribution, though it may be legally allowed.
Instead Limit both(Employer`s and Employee`s) contribution on Rs. 15000( i.e. Rs. 1800+Rs. 1800).
If employee wants to make more contribution, let him do it by way of a voluntary contribution which can be 88% of the basic. You need to keep a document(a request letter) in this regard from employee stating the rate of voluntary contribution. But please ensure that this voluntary contribution, though voluntary in nature, can be changed(increase/decreased) only in the month of March(being the first month of the year for pf purpose). You can start it any time during the year.
I agree with Mr. Harsh Kumar above said, please inform the respective RPFC about your decision or discuss with them for their views, and then only take the decision. Especially when you want to do it now after having contributed on salary above statutory limit in past.
Please share if any of you have taken decision and it is approved by pf authority by now.
Regards
Puran
From India, New Delhi
Referring the circular shared by Pragnaa HR above, the max statutory salary limit on which contribution has to be made is 15000( or actual drawn salary whichever is less). I would suggest the following things to avoid any administrative hassle on monthly basis and to save your skin at the time of inspection.
I do not agree with making employee contribution on amount 20000 and employer contribution on amount 15000. Employer has to make an equivalent contribution, though it may be legally allowed.
Instead Limit both(Employer`s and Employee`s) contribution on Rs. 15000( i.e. Rs. 1800+Rs. 1800).
If employee wants to make more contribution, let him do it by way of a voluntary contribution which can be 88% of the basic. You need to keep a document(a request letter) in this regard from employee stating the rate of voluntary contribution. But please ensure that this voluntary contribution, though voluntary in nature, can be changed(increase/decreased) only in the month of March(being the first month of the year for pf purpose). You can start it any time during the year.
I agree with Mr. Harsh Kumar above said, please inform the respective RPFC about your decision or discuss with them for their views, and then only take the decision. Especially when you want to do it now after having contributed on salary above statutory limit in past.
Please share if any of you have taken decision and it is approved by pf authority by now.
Regards
Puran
From India, New Delhi
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