as far as epf is concern the component consider for deduction of the same is basic salary+da+food conc. (if any) or any undefined allowanceeg. spl.allowance or others, secondly it is compulssory for those who are earning basic upto Rs. 6500/- pm but one you become the epf member the contribution for the same can be continued when it exceed the ceiling, and its depend upon the employer thet he is deductiong the same on actual basic or Rs. 6500/-.The Rs. 6500/- is the celing for EPS (8.33%), edli (0.5%) and administrative charges (0.01%0).
thanks & regards,
from,
Sumit Kumar Saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
252thanks & regards,
from,
Sumit Kumar Saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
Neha,
First of all I would like to substantiate here that the PF is a Social Security Benefit, which is one of the primary responsibility of any employer as well as the state(country- we use state in US).
Any state as a legal responsibility should ensure a secure life extension plan for the statesmen. In order to acheive this, PF is a very relevant ststutory requirement. Like you know, there are always loopholes in any system to counter the same in adverse consitions. Many employer take the advantage just to save on own contribution. Thus, 780/-.
It should be mandatory to deduct 12% of basic & employer's contribution to the same part to be deposited to the PF account.
Then there is a proper system.
As an ideal employer, all should follow this.
Regards,
niky
From India, Indore
First of all I would like to substantiate here that the PF is a Social Security Benefit, which is one of the primary responsibility of any employer as well as the state(country- we use state in US).
Any state as a legal responsibility should ensure a secure life extension plan for the statesmen. In order to acheive this, PF is a very relevant ststutory requirement. Like you know, there are always loopholes in any system to counter the same in adverse consitions. Many employer take the advantage just to save on own contribution. Thus, 780/-.
It should be mandatory to deduct 12% of basic & employer's contribution to the same part to be deposited to the PF account.
Then there is a proper system.
As an ideal employer, all should follow this.
Regards,
niky
From India, Indore
Dear
as per the rules of P.F act the maximum limit is 6500 for deduction hence maximum employers deduct the p.f.up to 6500 although they paid more then 6500 p.m., but it can be deduct more then 6500 but with the consent of the employees, employer as well as the P.f deptt.
kuldeep sharma
advocate
From India, New Delhi
as per the rules of P.F act the maximum limit is 6500 for deduction hence maximum employers deduct the p.f.up to 6500 although they paid more then 6500 p.m., but it can be deduct more then 6500 but with the consent of the employees, employer as well as the P.f deptt.
kuldeep sharma
advocate
From India, New Delhi
Hi Neha,
By reading the chain of reply on your query, I dont think you understand the reason behind fixing EPF contribution up to Rs.780.00.
First of all the higher limit of Rs.780.00 is for only those employee who are earning basic more than Rs.6500.00 and those are earning besic salary less than Rs.6500.00 is contributing on actual basis.
The reason is as EPF Rules the uper limit for EPF contribution is Rs.6500.00
As per EPF Rules the employer & Employeees are mandatorily liable to pay EPF contribution on baic salary upto Rs.6500.00 over and obove is voluntery they may contribute or they may not.
Taking the advantage of this rules employers are fixing EPF contribution only Rs.780.00 for those employees whos basic exceed Rs.6500.00.
With this employer save cost of the company on employers contribution and employees are getting increased take home salary becouse they contribut less amount in EPF.
Ilyas hungund.
09820472697
From India, Mumbai
By reading the chain of reply on your query, I dont think you understand the reason behind fixing EPF contribution up to Rs.780.00.
First of all the higher limit of Rs.780.00 is for only those employee who are earning basic more than Rs.6500.00 and those are earning besic salary less than Rs.6500.00 is contributing on actual basis.
The reason is as EPF Rules the uper limit for EPF contribution is Rs.6500.00
As per EPF Rules the employer & Employeees are mandatorily liable to pay EPF contribution on baic salary upto Rs.6500.00 over and obove is voluntery they may contribute or they may not.
Taking the advantage of this rules employers are fixing EPF contribution only Rs.780.00 for those employees whos basic exceed Rs.6500.00.
With this employer save cost of the company on employers contribution and employees are getting increased take home salary becouse they contribut less amount in EPF.
Ilyas hungund.
09820472697
From India, Mumbai
hello,
I am working with BPO, currently I am getting 15k sal p.m. They r deducting only 120rs PF and showing basic only 1000rs, can anybody tell me is this right?
let me show you all those things
BASIC - 1000/- ESIC -193
PT ------200
HRA -- 14000 PF- 120
TOTAL EARNING - 14000 TOTAL DEDUCT -513
IS IT RIGHT?? please reply
From India, Pune
I am working with BPO, currently I am getting 15k sal p.m. They r deducting only 120rs PF and showing basic only 1000rs, can anybody tell me is this right?
let me show you all those things
BASIC - 1000/- ESIC -193
PT ------200
HRA -- 14000 PF- 120
TOTAL EARNING - 14000 TOTAL DEDUCT -513
IS IT RIGHT?? please reply
From India, Pune
Hi Abhijit K,
Yes the above mentioned PF Deduction is absolutely right. Because the deduction of P.F. is based on the Basic salary, not upon the CTC.
Your P.F. is deducted as 12 % of Basic i.e. 1000*12% = 120
From India, Pune
Yes the above mentioned PF Deduction is absolutely right. Because the deduction of P.F. is based on the Basic salary, not upon the CTC.
Your P.F. is deducted as 12 % of Basic i.e. 1000*12% = 120
From India, Pune
Hello dear friend
Tks for replying.. just I want to knw,
I mean its looking different see my sal is 14-15k and basic is only 1000rs and HRA 13-14k
y is this so? i dnt have any problem .. but when I go to any bank for asking loan, they r asking me my sal & then basic sal. b'coz of less basic.. I am getting less loan
what is the legal percentage of basic salary?
From India, Pune
Tks for replying.. just I want to knw,
I mean its looking different see my sal is 14-15k and basic is only 1000rs and HRA 13-14k
y is this so? i dnt have any problem .. but when I go to any bank for asking loan, they r asking me my sal & then basic sal. b'coz of less basic.. I am getting less loan
what is the legal percentage of basic salary?
From India, Pune
Just to evade the Tax for Government and avoid or less pay the statutory requirements some companies are doing like that.
The company people has to understand that their companies name is being damaged by these acts.
The percentage of Basic salary can be from 35% to 100%, depending up the position, salary fixing method being adopted in company, Cadre and availability of manpower category in required designation.
From India, Kumbakonam
The company people has to understand that their companies name is being damaged by these acts.
The percentage of Basic salary can be from 35% to 100%, depending up the position, salary fixing method being adopted in company, Cadre and availability of manpower category in required designation.
From India, Kumbakonam
can u decrib me the PF amount will be Deidcting in a not gross salary PF Deducation in dedcut in Basic salary I m Right na
From India, Delhi
From India, Delhi
Rupesh,
Your point is very right, but till government takes an action for that, employees wishing to secure their future can contribute to the Voluntary Provident Fund as per their capacity. This would help them very much to get a good amount after their retirement depending on the amount contribute in the VPF
Prasanth
From India, Mumbai
Your point is very right, but till government takes an action for that, employees wishing to secure their future can contribute to the Voluntary Provident Fund as per their capacity. This would help them very much to get a good amount after their retirement depending on the amount contribute in the VPF
Prasanth
From India, Mumbai
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