Both are correct. Under the first one, the administration charges will increase corresponding to salary but in the second one, since the salary is less,the admin. charges will be less.
From India, Kannur
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4479From India, Kannur
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So, what I learn from this discussion is:
1. An employee can contribute more than 12% as VPF in their PF A/C, but the employer can contribute 12% at the basic wage limit of 15k. The employer is not liable to pay the extra % (EPF EE share- EPS share) towards the employee's PF account.
2. EPF wages are the wages on which EPF share is calculated, and EPS wages are the wages on which EPS share is calculated, which is a maximum of Rs 1250/-. EPF wages and EPS wages can be different.
3. EDLI is calculated on EPS wages, and PF Admin is calculated on EPF wages.
Thank you, @Madhu.T.K, sir, for sharing your knowledge.
From India, Pune
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1. An employee can contribute more than 12% as VPF in their PF A/C, but the employer can contribute 12% at the basic wage limit of 15k. The employer is not liable to pay the extra % (EPF EE share- EPS share) towards the employee's PF account.
2. EPF wages are the wages on which EPF share is calculated, and EPS wages are the wages on which EPS share is calculated, which is a maximum of Rs 1250/-. EPF wages and EPS wages can be different.
3. EDLI is calculated on EPS wages, and PF Admin is calculated on EPF wages.
Thank you, @Madhu.T.K, sir, for sharing your knowledge.
From India, Pune
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Hello Sir,
As per our discussion yesterday, I prepared the ECR. However, when I uploaded it, I encountered an error stating that EPF wages cannot be greater than Gross wages. The employee wishes to contribute Rs 8850 to the EPF A/C. Therefore, I set the EPF wages at 73750 (73750*12%), while the employee's gross wages are Rs 52000. If I calculate EPF based on Rs 15000 (15000*57% = 8850), my PF Admin charges will be on a lower amount. This could potentially cause issues for the PF officers.
I am now confused because we have learned that employees can contribute up to 100% of their basic salary and dearness allowance towards the VPF scheme. Does this mean that if my basic + DA is Rs 20,000, I can contribute Rs 20000 to EPF? Or does it imply that I can contribute 12% of my total basic + DA, which amounts to Rs 20,000, making the contribution Rs 2400?
Do I need to adjust the EPF wages to achieve a 12% contribution of Rs 20,000? If so, the EPF wages would exceed the employee's gross wages. How should I calculate VPF in ECR?
Thank you.
From India, Pune
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As per our discussion yesterday, I prepared the ECR. However, when I uploaded it, I encountered an error stating that EPF wages cannot be greater than Gross wages. The employee wishes to contribute Rs 8850 to the EPF A/C. Therefore, I set the EPF wages at 73750 (73750*12%), while the employee's gross wages are Rs 52000. If I calculate EPF based on Rs 15000 (15000*57% = 8850), my PF Admin charges will be on a lower amount. This could potentially cause issues for the PF officers.
I am now confused because we have learned that employees can contribute up to 100% of their basic salary and dearness allowance towards the VPF scheme. Does this mean that if my basic + DA is Rs 20,000, I can contribute Rs 20000 to EPF? Or does it imply that I can contribute 12% of my total basic + DA, which amounts to Rs 20,000, making the contribution Rs 2400?
Do I need to adjust the EPF wages to achieve a 12% contribution of Rs 20,000? If so, the EPF wages would exceed the employee's gross wages. How should I calculate VPF in ECR?
Thank you.
From India, Pune
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You cannot put PF wages higher than gross wages. How is it possible? PF is calculated on the wages and if you need higher contribution, make the percentage higher than 12%.
From India, Kannur
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From India, Kannur
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Sir, can you help me with how I should do the calculation in ECR if an employee wants to contribute 100% of their basic + DA in EPF, given that the basic + DA is Rs. 20,000.
EPF wages - Rs. 20,000
EPS wages - Rs. 15,000
EDLI wages - Rs. 15,000
EPF EE share - ?
Could you guide me on how to calculate the EPF EE share if the employee wishes to contribute 100%?
From India, Pune
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EPF wages - Rs. 20,000
EPS wages - Rs. 15,000
EDLI wages - Rs. 15,000
EPF EE share - ?
Could you guide me on how to calculate the EPF EE share if the employee wishes to contribute 100%?
From India, Pune
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You may input 20000 as the employee contribution. On the clerical side, I am not used to it. I think before that, you may have to change the portion where the number of persons contributing a higher percentage than 12%. Then it will be good. Try that.
From India, Kannur
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From India, Kannur
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Earlier, I was calculating a higher percentage for those who have opted for VPF. I kept the EPF wages at Rs 15,000 and used to calculate more than 12% of the employee's share based on 15,000 only.
EPF WAGES - 15,000
EPS WAGES - 15,000
EDLI WAGES - 15,000
So, EPF EE Share - 5,334 (35.56% of 15k), EPF ER Share - 550, EPS Contribution - 1,250. However, recently when I visited the PF office, they informed me that I should change the EPF wages. I should calculate 12% on EPF wages to get Rs 5,334 as the employee contribution and calculate Admin charges on EPF wages.
From India, Pune
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EPF WAGES - 15,000
EPS WAGES - 15,000
EDLI WAGES - 15,000
So, EPF EE Share - 5,334 (35.56% of 15k), EPF ER Share - 550, EPS Contribution - 1,250. However, recently when I visited the PF office, they informed me that I should change the EPF wages. I should calculate 12% on EPF wages to get Rs 5,334 as the employee contribution and calculate Admin charges on EPF wages.
From India, Pune
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