I agree with what Mr. Mohan said. Any employee can voluntarily contribute more than 12% of his Basic & DA wages towards PF contribution. However, the employer's contribution is limited to 12%. In the case of EPS, the limitation would be Rs. 6,500, i.e., the contribution to EPS would work out to Rs. 541 per month.
In her first email, Shalu said the management deducts 20% as PF contribution from a particular employee. Therefore, Mr. Mohan had to say it was illegal.
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4In her first email, Shalu said the management deducts 20% as PF contribution from a particular employee. Therefore, Mr. Mohan had to say it was illegal.
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Hello,
Could anyone please confirm if an employee can deduct Voluntary PF contribution more than 12% (mandatory), i.e., 12% + 15% = 27%? Additionally, does management also deposit the same ratio, i.e., 27% + administrative charges, etc.?
Please confirm as this is urgent!!!
Thanks in advance.
Best regards,
Pravin11
From India, Nasik
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Could anyone please confirm if an employee can deduct Voluntary PF contribution more than 12% (mandatory), i.e., 12% + 15% = 27%? Additionally, does management also deposit the same ratio, i.e., 27% + administrative charges, etc.?
Please confirm as this is urgent!!!
Thanks in advance.
Best regards,
Pravin11
From India, Nasik
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Re: PF CalculationPf is mandatory for both employee and employer for who’s basic salary is Rs.6,500/- or less (which is 12%). If basic salary is more than Rs. 6,500/- it is not mandatory for the employer to contribute their share to the employee, but it is up to the employer discretion whether to contribute or not.
If employee (whose basic salary is more than Rs. 6,500/-) would like to contribute more than 12% of his/her basic salary employer can deduct the same and deposit in employee share.
From India, Hyderabad
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If employee (whose basic salary is more than Rs. 6,500/-) would like to contribute more than 12% of his/her basic salary employer can deduct the same and deposit in employee share.
From India, Hyderabad
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Hi, As I know admistrative charges on PF will be paid on the whole amount in which PF is deducted. EDLI & admistrative charges on EDLI will be paid on Rs.6500.00 max. Regards Navin Chandra Pathak
From India, Delhi
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From India, Delhi
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Hi,
As per the rules of the Provident Fund Act, the following facts are applicable:
1) "The amount deducted from the salary of the employee is equal to the amount paid as the employee's share in the PF Challan!"
2) The employer should not deduct more than 12% of the allied salary (i.e., Basic + DA). If the company wants to deduct more, it must be permitted by the PF Department.
3) Total contributions to PF are as follows:
- Employer Contribution (13.61%) = 8.33% (Pension Fund) + 3.67% (Provident Fund A/c) + 0.5% (Insurance Fund) + 1.1% + 0.01% (Admin Charges).
- Employee Contribution (12%) = 12% (Provident Fund A/c)
Therefore, the total contribution is 13.61% + 12% = 25.61%.
Please let me know if the above information is valuable or not.
From India, Mumbai
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As per the rules of the Provident Fund Act, the following facts are applicable:
1) "The amount deducted from the salary of the employee is equal to the amount paid as the employee's share in the PF Challan!"
2) The employer should not deduct more than 12% of the allied salary (i.e., Basic + DA). If the company wants to deduct more, it must be permitted by the PF Department.
3) Total contributions to PF are as follows:
- Employer Contribution (13.61%) = 8.33% (Pension Fund) + 3.67% (Provident Fund A/c) + 0.5% (Insurance Fund) + 1.1% + 0.01% (Admin Charges).
- Employee Contribution (12%) = 12% (Provident Fund A/c)
Therefore, the total contribution is 13.61% + 12% = 25.61%.
Please let me know if the above information is valuable or not.
From India, Mumbai
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What is the logic of 20%? No, this is absolutely wrong. In fact, it is clearly mentioned that the maximum limit for deducting the PF is Rs. 6500. If any employee wishes to deduct the PF (if their basic is more than Rs. 6500), it is also considered provided only their share will be deposited in that case. The employer will contribute their contribution considering the basic Rs. 6500, which please note.
Mahendra
From India, Mumbai
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Mahendra
From India, Mumbai
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