Hi,
To have a fundamental understanding of the new PF rule, I want to know whether the maximum deduction for an employee is set at 12% of 15000 or 12% of the basic salary. Kindly clarify this for me in my case, where the Basic is 16420, AGP is 6000, and PF is 10089.
If the limit is set to 12% of 15000, am I allowed to add voluntary PF to the deducted amount?
Thanks in advance.
Regards,
Karthikeyan
From India, Trichy
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To have a fundamental understanding of the new PF rule, I want to know whether the maximum deduction for an employee is set at 12% of 15000 or 12% of the basic salary. Kindly clarify this for me in my case, where the Basic is 16420, AGP is 6000, and PF is 10089.
If the limit is set to 12% of 15000, am I allowed to add voluntary PF to the deducted amount?
Thanks in advance.
Regards,
Karthikeyan
From India, Trichy
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Sorry all, its not the PF thats 10089, its the DA. Regards, Karthikeyan
From India, Trichy
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From India, Trichy
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Dear Mr. Naveen,
You are correct that the statement of account in Form No. 23 shall reflect only towards Provident Fund of both employees and employers' contributions. But nowhere in the scheme does the amount of contribution by the employer towards EPS indicate. This is because this is a Head of account maintained by the EPFO under the EPS scheme. Irrespective of anybody's contributions, the pension amount will be paid to the employee only after attaining the age of 58 years after retirement from services. Earlier, there was no minimum; now, the minimum is fixed at 1000. If an employee is getting less than this as per the formula, then it will be applicable as 1000. The maximum pension shall be arrived at only after the retirement of the employee, subject to his pensionable service and pensionable salary. A formula has been made by the EPFO for this purpose. Based on this formula, the pension is being fixed and paid to the employee until his/her death, and afterwards, to his/her nominee as per the option mentioned in Form No. 10D of the scheme.
Adoni Suguresh
Sr. Executive (Pers, Admin & Ind. Rels) Rtd
Labour Laws Consultant
From India, Bidar
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161You are correct that the statement of account in Form No. 23 shall reflect only towards Provident Fund of both employees and employers' contributions. But nowhere in the scheme does the amount of contribution by the employer towards EPS indicate. This is because this is a Head of account maintained by the EPFO under the EPS scheme. Irrespective of anybody's contributions, the pension amount will be paid to the employee only after attaining the age of 58 years after retirement from services. Earlier, there was no minimum; now, the minimum is fixed at 1000. If an employee is getting less than this as per the formula, then it will be applicable as 1000. The maximum pension shall be arrived at only after the retirement of the employee, subject to his pensionable service and pensionable salary. A formula has been made by the EPFO for this purpose. Based on this formula, the pension is being fixed and paid to the employee until his/her death, and afterwards, to his/her nominee as per the option mentioned in Form No. 10D of the scheme.
Adoni Suguresh
Sr. Executive (Pers, Admin & Ind. Rels) Rtd
Labour Laws Consultant
From India, Bidar
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In view of the recent judgment by the Honorable Supreme Court of India: what is the legal position for the calculation of pension if an employee's actual salary has been above Rs. 15,000? Will it benefit employees who have retired and withdrawn their PF contribution?
Please let me know if you need further assistance or clarification on this matter.
From United Kingdom, Bedford
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Please let me know if you need further assistance or clarification on this matter.
From United Kingdom, Bedford
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Dear GAURN SRT,
For PF members and retired and settled past members who are eligible to contribute on full salary to the pension fund, provided their contribution to PF is/was beyond the ceiling limit. Normally, it will be beneficial to members.
Abbas. P. S
From India, Bangalore
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For PF members and retired and settled past members who are eligible to contribute on full salary to the pension fund, provided their contribution to PF is/was beyond the ceiling limit. Normally, it will be beneficial to members.
Abbas. P. S
From India, Bangalore
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