Dear friends,
I was away from CiteHR for the last two days; hence, I am unable to notice the above discussions. If the salary is above the ceiling limit, the employer will have two options to contribute to EPF.
1. To contribute based on the ceiling salary. The contribution for one month will be 15000 x 12% = 1800/- and for 18 days (out of 31), it is 1800 x 18/31 = 1045.
2. To contribute based on the actual salary with the consent of the employee. The contribution for one month is 22000 x 12% = 2640/- and for 18 days (out of 31), it is 2640 x 18/31 = 1533.
However, the initial query is very specific on the contribution based on the ceiling salary. So, why is there room for confusion?
Abbas.P.S
From India, Bangalore
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530I was away from CiteHR for the last two days; hence, I am unable to notice the above discussions. If the salary is above the ceiling limit, the employer will have two options to contribute to EPF.
1. To contribute based on the ceiling salary. The contribution for one month will be 15000 x 12% = 1800/- and for 18 days (out of 31), it is 1800 x 18/31 = 1045.
2. To contribute based on the actual salary with the consent of the employee. The contribution for one month is 22000 x 12% = 2640/- and for 18 days (out of 31), it is 2640 x 18/31 = 1533.
However, the initial query is very specific on the contribution based on the ceiling salary. So, why is there room for confusion?
Abbas.P.S
From India, Bangalore
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Dear Rajasreepmanoj You should use first option. basic =22000/31*18=12774 then PF = 12774*.12=1533. Because as per EPF Act, Contribution will be Rs 1800/- or Actual deduction which is lower.
From India, Indore
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From India, Indore
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Dear Harishcbansal, The above statement is incorrect. If you have different opinion, kindly quote the above act as per your posting. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Basic 22000/- PF deposit = 1800 /- i.e. 12 % 15000/- ( as per P F limit) 18 days PF will be calculated on the Basic of 18 Days.
From India, Delhi
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From India, Delhi
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Even though the salary is Rs. 22000, PF payment is being based on a salary of Rs. 15000. Hence, Rs. 1800 (@12%) is paid to PF. If the attendance is 18 days, the rest of the 13 days have to be recorded as NCP (non-contributory period). Therefore, it is not feasible to pay 22000 x 18/31 x 12%.
I request my friends that if you are not thorough with the provisions of the act, kindly do not misguide others.
From India, Bangalore
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I request my friends that if you are not thorough with the provisions of the act, kindly do not misguide others.
From India, Bangalore
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Dear Concern,
The PF amount is always deducted from the net earnings. Now, the restriction for PF deduction on Salary (Basic + Da) is 15000. This means that 15000 would be your (basic + da). You are not obligated to deduct the PF above this amount. Therefore, when calculating the salary, you can base it on 15000. For instance, if the Basic is 15000, then the PF would be on 15000, i.e., 15000 * 18/31 = 8710 Salary (Basic). The PF amount is calculated as 12% of 8710, i.e., 1045.
In Case 2, if the Basic is 22000 as per your calculation, then the calculation would be 22000 * 18/31 = 12774. The PF would be on 12774, i.e., 1533 rs/-
Thanks,
Shubham
From India, Faridabad
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The PF amount is always deducted from the net earnings. Now, the restriction for PF deduction on Salary (Basic + Da) is 15000. This means that 15000 would be your (basic + da). You are not obligated to deduct the PF above this amount. Therefore, when calculating the salary, you can base it on 15000. For instance, if the Basic is 15000, then the PF would be on 15000, i.e., 15000 * 18/31 = 8710 Salary (Basic). The PF amount is calculated as 12% of 8710, i.e., 1045.
In Case 2, if the Basic is 22000 as per your calculation, then the calculation would be 22000 * 18/31 = 12774. The PF would be on 12774, i.e., 1533 rs/-
Thanks,
Shubham
From India, Faridabad
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