Dear Chaturvedi Sir,
I have some doubt for pf calculation.
1. Which one is correct calculation for PF (Calculate from Basic or Calculate from Basic + DA),
2. Which method is legal procedure to calculate PF, and
3. Is there any changes in EDLI Benefits?
I need your helpful reply.
From India, Trichy
2I have some doubt for pf calculation.
1. Which one is correct calculation for PF (Calculate from Basic or Calculate from Basic + DA),
2. Which method is legal procedure to calculate PF, and
3. Is there any changes in EDLI Benefits?
I need your helpful reply.
From India, Trichy
Dear Sirs, Could anyone clarify whether there is any particular percentage - the basic salary should be from Gross salary? Bcoz, it impacts on EPF reduction, minimum wages (Basic + DA), etc...
From India, Chennai
From India, Chennai
Dear Fellow community members...
One interesting feature is not at all addressed by any one in this forum. That is on getting pension 50% on the last drawn wages.In this notification it is touched as below: please confirm my understanding is on the right side of the EPS body. This is on the contribution made by the companies on the actual basic being drawn without limiting to the CAP of 15k. The notification gives 6 months time to confirm by both employer and employee.
Suppose one's basic is Rs.20000/-.
Employee Share: 20000X12% =2400
Employer share: 20000X (8.33%+3.67%)=1666+734
If Rs.1666/- is contributed to EPS then such employee can draw 50% of the last drawn average basic as his pension. But one wise amendment made by the EPS body is ,
Last drawn Basic wage = average of last 60 months basic prior to retirement.
It was earlier last 12 months basic prior to retirement. Now it is hiked to 60 months.
Under the above one can expect the pension of as good as Govt. employees. Say one retires at 2030. The average basic salary between 2026 to 2030 is 40k, then he can expect the pension of Rs.20k per month.
Let us publicize this benefit to all ! Seeks views from all learned members !!!
Rajan
From India, Alandur
One interesting feature is not at all addressed by any one in this forum. That is on getting pension 50% on the last drawn wages.In this notification it is touched as below: please confirm my understanding is on the right side of the EPS body. This is on the contribution made by the companies on the actual basic being drawn without limiting to the CAP of 15k. The notification gives 6 months time to confirm by both employer and employee.
Suppose one's basic is Rs.20000/-.
Employee Share: 20000X12% =2400
Employer share: 20000X (8.33%+3.67%)=1666+734
If Rs.1666/- is contributed to EPS then such employee can draw 50% of the last drawn average basic as his pension. But one wise amendment made by the EPS body is ,
Last drawn Basic wage = average of last 60 months basic prior to retirement.
It was earlier last 12 months basic prior to retirement. Now it is hiked to 60 months.
Under the above one can expect the pension of as good as Govt. employees. Say one retires at 2030. The average basic salary between 2026 to 2030 is 40k, then he can expect the pension of Rs.20k per month.
Let us publicize this benefit to all ! Seeks views from all learned members !!!
Rajan
From India, Alandur
Dear Experts,
Is the PF calculation correct?
Example-1 (Base Rs. 15000/-)
CTC Salary – Rs. 25000/-
Basic (60% of CTC) – Rs. 15000/-
Medical (Max.)- Rs. 1250/-
HRA (40% of Basic) – Rs. 6000/-
Conveyance (Max.)- Rs. 800/-
Sp. Allowance – Rs. 1950/-
Deduction:-
PF:- (Emp. Cont.)= Rs. 15000*12%= Rs. 1800
PF:- (Empr. Cont.)= Rs. 15000*13.61%= Rs.2041.50 -
Example- 2
CTC Salary – Rs. 25002/-
Basic (60% of CTC) – Rs. 15001.2/-
Medical (Max.)- Rs. 1250/-
HRA (40% of Basic) – Rs. 6000.48/-
Conveyance (Max.)- Rs. 800/-
Sp. Allowance – Rs. 1950.32/-
Deduction:-(as basic is above 15000, exempted)
PF:- (Emp. Cont.)= Rs. 0*12%= Rs. 0
PF:- (Empr. Cont.)= Rs. 0*13.61%= Rs.0
Example- 3:
CTC Salary – Rs. 10000/-
Basic (60% of CTC) – Rs. 6000/-
Medical (12 % of Basic.)- Rs.720/-
HRA (40% of Basic) – Rs. 2400/-
Conveyance (Max.)- Rs. 240/-
Sp. Allowance – Rs. 640/-
Deduction:-
PF:- (Emp. Cont.)= Rs. 6000*12%= Rs. 720
PF:- (Empr. Cont.)= Rs. 0*13.61%= Rs.816.6
From India, Mumbai
Is the PF calculation correct?
Example-1 (Base Rs. 15000/-)
CTC Salary – Rs. 25000/-
Basic (60% of CTC) – Rs. 15000/-
Medical (Max.)- Rs. 1250/-
HRA (40% of Basic) – Rs. 6000/-
Conveyance (Max.)- Rs. 800/-
Sp. Allowance – Rs. 1950/-
Deduction:-
PF:- (Emp. Cont.)= Rs. 15000*12%= Rs. 1800
PF:- (Empr. Cont.)= Rs. 15000*13.61%= Rs.2041.50 -
Example- 2
CTC Salary – Rs. 25002/-
Basic (60% of CTC) – Rs. 15001.2/-
Medical (Max.)- Rs. 1250/-
HRA (40% of Basic) – Rs. 6000.48/-
Conveyance (Max.)- Rs. 800/-
Sp. Allowance – Rs. 1950.32/-
Deduction:-(as basic is above 15000, exempted)
PF:- (Emp. Cont.)= Rs. 0*12%= Rs. 0
PF:- (Empr. Cont.)= Rs. 0*13.61%= Rs.0
Example- 3:
CTC Salary – Rs. 10000/-
Basic (60% of CTC) – Rs. 6000/-
Medical (12 % of Basic.)- Rs.720/-
HRA (40% of Basic) – Rs. 2400/-
Conveyance (Max.)- Rs. 240/-
Sp. Allowance – Rs. 640/-
Deduction:-
PF:- (Emp. Cont.)= Rs. 6000*12%= Rs. 720
PF:- (Empr. Cont.)= Rs. 0*13.61%= Rs.816.6
From India, Mumbai
Hi Tatkare Jee, Its all about Basic+DA only if you are not having DA component please consider Basic only for deduction.
From India, Jabalpur
From India, Jabalpur
Hi Dhiliban,
If you are having separate DA component in your CTC/Gross fixation format than add this amount with basic for calculation of PF wages. If you do not have separate DA component than go with basic only.
The EDLI benefit has also increased to 3.6 Lakhs.
From India, Jabalpur
If you are having separate DA component in your CTC/Gross fixation format than add this amount with basic for calculation of PF wages. If you do not have separate DA component than go with basic only.
The EDLI benefit has also increased to 3.6 Lakhs.
From India, Jabalpur
Dear All
Pls take a note of below point in Pension amendment.
Para 4 says\" The existing members as on 1/9/14 who at the option of employer and employee had been contributing on salary exceeding 6500/- may on fresh option continue to contribute on salary exceeding 15000/-.
Provided that aforesaid members have to contribute @1.16% on salary exceeding 15000/- as an additional contribution payable by employees for each month\".
To what i understand about pension is that it doesnot have an option to contribute on salary above statutory limit. Earlier it was 6500/- so pension contribution of employees who were contributing above the statutory limit was 541/- which was contributed by employer. Now in this scheme it talks about the contribution over and above wage ceiling as well as additional contribution by those who are contributing over and above the wage ceiling.
This creates confusion about what will be the present structure of PF and Pension calculation.?
From India, Ahmedabad
Pls take a note of below point in Pension amendment.
Para 4 says\" The existing members as on 1/9/14 who at the option of employer and employee had been contributing on salary exceeding 6500/- may on fresh option continue to contribute on salary exceeding 15000/-.
Provided that aforesaid members have to contribute @1.16% on salary exceeding 15000/- as an additional contribution payable by employees for each month\".
To what i understand about pension is that it doesnot have an option to contribute on salary above statutory limit. Earlier it was 6500/- so pension contribution of employees who were contributing above the statutory limit was 541/- which was contributed by employer. Now in this scheme it talks about the contribution over and above wage ceiling as well as additional contribution by those who are contributing over and above the wage ceiling.
This creates confusion about what will be the present structure of PF and Pension calculation.?
From India, Ahmedabad
Dear members,
It will take sometime for confusion to stop and to understand the full crux of notification. In addition to the above, also be reminded about the following clause in the notification.
" Effective September, 1, 2014, all new EPF members shall not become a member of EPS, if their pay is more than INR 15,000/ month at the time of joining. In other words, no allocation towards pension fund will be made for such new members and the entire employee and employer contribution will go to the provident fund account. For existing subscribers drawing more than 15000/-, a 'fresh option' has to be exercised for willingness to contribute".
At the maximum employer may restrict to 15000/- for EPS/EPS as usual. Many small size companies are unwilling to meet the extra contribution and so also the employees on high deduction. Let's wait and see the course of action.
Regards
Chandru
From India, Madras
It will take sometime for confusion to stop and to understand the full crux of notification. In addition to the above, also be reminded about the following clause in the notification.
" Effective September, 1, 2014, all new EPF members shall not become a member of EPS, if their pay is more than INR 15,000/ month at the time of joining. In other words, no allocation towards pension fund will be made for such new members and the entire employee and employer contribution will go to the provident fund account. For existing subscribers drawing more than 15000/-, a 'fresh option' has to be exercised for willingness to contribute".
At the maximum employer may restrict to 15000/- for EPS/EPS as usual. Many small size companies are unwilling to meet the extra contribution and so also the employees on high deduction. Let's wait and see the course of action.
Regards
Chandru
From India, Madras
Can anyone explain me the below clause of the new notification by PF enhancing limit from 6500 to 15000 wage ceiling?
"On salary exceeding six thousand and five hundred rupees per month, may on a fresh option to be exercised jointly by the employer and employee continue to contribute on salary exceeding fifteen thousand rupees per month:
Provided that the aforesaid members have to contribute at the rate of 1.16 per cent on salary exceeding fifteen thousand rupees as art additional contribution from and out of the contributions payable by the employees for each month under the provisions of the Act or the rules made thereunder
Looking forward for an early response.
Thanks,
Sajid
From India, Delhi
"On salary exceeding six thousand and five hundred rupees per month, may on a fresh option to be exercised jointly by the employer and employee continue to contribute on salary exceeding fifteen thousand rupees per month:
Provided that the aforesaid members have to contribute at the rate of 1.16 per cent on salary exceeding fifteen thousand rupees as art additional contribution from and out of the contributions payable by the employees for each month under the provisions of the Act or the rules made thereunder
Looking forward for an early response.
Thanks,
Sajid
From India, Delhi
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Splitting of minimum wages for PF in abeyance (1).pdf