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
4249From India, Kannur
So, what I learn from this discussion is -
1. Employee can contribute more than 12% as VPF in their PF A/C, but employer can contribute 12% at basic wage limit of 15k. Employer is not liable to pay the extra % (EPF EE share- EPS share) towards employee 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 maximum Rs 1250/- . And EPF wages and EPS wages can be different.
3. EDLI is calculated on EPS wages and PF Admin is calculated on EPF wages.
Thankyou @Madhu.T.K sir for sharing your knowledge.
From India, Pune
1. Employee can contribute more than 12% as VPF in their PF A/C, but employer can contribute 12% at basic wage limit of 15k. Employer is not liable to pay the extra % (EPF EE share- EPS share) towards employee 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 maximum Rs 1250/- . And EPF wages and EPS wages can be different.
3. EDLI is calculated on EPS wages and PF Admin is calculated on EPF wages.
Thankyou @Madhu.T.K sir for sharing your knowledge.
From India, Pune
Hello Sir,
As per our yesterday's discussion I prepared the ECR but when I uploaded the ECR, I got an error- EPF wages can not be greater than Gross wages.
Employee wants to contribute Rs 8850 in the EPF A/C , so I kept the EPF wages as 73750 (73750*12%) and employee's gross wages is Rs 52000. and if I calculate EPF on 15000 like, (15000*57%= 8850) my PF Admin charges will be on less amount. Which can be a problem for the PF officers.
I'm confused now, because we read , Employees can contribute up to 100% of their basic salary and dearness allowance towards the VPF scheme, means if my basic + DA is Rs 20,000, I can contribute Rs 20000 towards EPF. OR this statement means, I can contribute 12% on my total basic + DA which is Rs 20,000. So, contribution will be Rs 2400.
or I have to change EFP wages to get the 12% *x= 20,000 as EPF contribution. In this case EPF wages will be more than Employee's gross wages.
How should I calculate VPF in ECR.
From India, Pune
As per our yesterday's discussion I prepared the ECR but when I uploaded the ECR, I got an error- EPF wages can not be greater than Gross wages.
Employee wants to contribute Rs 8850 in the EPF A/C , so I kept the EPF wages as 73750 (73750*12%) and employee's gross wages is Rs 52000. and if I calculate EPF on 15000 like, (15000*57%= 8850) my PF Admin charges will be on less amount. Which can be a problem for the PF officers.
I'm confused now, because we read , Employees can contribute up to 100% of their basic salary and dearness allowance towards the VPF scheme, means if my basic + DA is Rs 20,000, I can contribute Rs 20000 towards EPF. OR this statement means, I can contribute 12% on my total basic + DA which is Rs 20,000. So, contribution will be Rs 2400.
or I have to change EFP wages to get the 12% *x= 20,000 as EPF contribution. In this case EPF wages will be more than Employee's gross wages.
How should I calculate VPF in ECR.
From India, Pune
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
From India, Kannur
Sir, can you help me how should I do the calculation in ECR, if employee wants to contribute 100% of their basic +DA in EPF, if the basic + DA is Rs. 20000.
EPF wages- 20,000
EPS wages- 15000
EDLI wages- 15000
EPF EE share- ?
how I should do the calculation, if employee wants to contribute 100%.
From India, Pune
EPF wages- 20,000
EPS wages- 15000
EDLI wages- 15000
EPF EE share- ?
how I should do the calculation, if employee wants to contribute 100%.
From India, Pune
You may put 20000 as Employee contribution. This clerical side, i am not used to. I think before that you may have to change the portion where number of persons contributing higher percentage than 12%. Then it will be through. Try that.
From India, Kannur
From India, Kannur
Earlier I was calculating at higher percentage for those who have opt for VPF. Keeping the EPF wages Rs 15000 and used to calculate more than 12% of employee share on 15000 only.
EPF WAGES- 15000
EPS WAGES- 15000
EDLI WAGES- 15000
So, EPF EE Share - 5334 (35.56% of 15k) EPF ER Share - 550, EPS Contribution- 1250
but recently I visited the PF office and they told me that I should change the EPF wages. I should calculate 12 % on EPF wages to get Rs 5334 as employee contribution and calculate Admin charges on EPF wages.
From India, Pune
EPF WAGES- 15000
EPS WAGES- 15000
EDLI WAGES- 15000
So, EPF EE Share - 5334 (35.56% of 15k) EPF ER Share - 550, EPS Contribution- 1250
but recently I visited the PF office and they told me that I should change the EPF wages. I should calculate 12 % on EPF wages to get Rs 5334 as employee contribution and calculate Admin charges on EPF wages.
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Voluntary PF.doc
PF Admin Charge revised to 0.5%_01.06.2018 .pdf