Hi Seniors,
I want to know if there is any capping over contribution of PF by the employee/employer. I understand the contribution of employee and employer stands 12% and 13.61% (including PF, Pension, Admin chgs) respectively on base salary. However, is it feasible for any company to restrict the contribution to certain limit, reason being the basic pay of any employee exceeds 20k.
Please advice!
From India, Pune
5I want to know if there is any capping over contribution of PF by the employee/employer. I understand the contribution of employee and employer stands 12% and 13.61% (including PF, Pension, Admin chgs) respectively on base salary. However, is it feasible for any company to restrict the contribution to certain limit, reason being the basic pay of any employee exceeds 20k.
Please advice!
From India, Pune
Hi,
We are a consulting firm we deduct 3600 as PF, one of the employee has received a msg stating that EPF contribution of Rs 2350 against her uae no. is received, so they started what happen to the rest amount. i told a part of it goes towards Pension scheme. but they are not believing and asking for calculation, can some help me with the calculation, as i have nil idea on calculation
From India, Chennai
We are a consulting firm we deduct 3600 as PF, one of the employee has received a msg stating that EPF contribution of Rs 2350 against her uae no. is received, so they started what happen to the rest amount. i told a part of it goes towards Pension scheme. but they are not believing and asking for calculation, can some help me with the calculation, as i have nil idea on calculation
From India, Chennai
Hi, Sorry in previous mail instead of UAN no. i have wrongly mentioned Uae. sorry for the inconvenience
From India, Chennai
From India, Chennai
Break-up of the EPF contribution
12% of the employee’s salary goes towards the EPF.
Whereas the employer’s contribution is divided as below:
3.67% goes towards contribution for EPF
8.33% goes towards contribution for EPS
0.5% goes towards contribution for EDLI
1.1% goes towards contribution for EPF administration charges
0.01% goes towards contribution for EDLI administration charges
Therefore, the employer contribution is 13.61%. The premium and management charges are borne by the employer and the maximum limit is set at 0.5% of Rs.15,000.
From India, Mumbai
12% of the employee’s salary goes towards the EPF.
Whereas the employer’s contribution is divided as below:
3.67% goes towards contribution for EPF
8.33% goes towards contribution for EPS
0.5% goes towards contribution for EDLI
1.1% goes towards contribution for EPF administration charges
0.01% goes towards contribution for EDLI administration charges
Therefore, the employer contribution is 13.61%. The premium and management charges are borne by the employer and the maximum limit is set at 0.5% of Rs.15,000.
From India, Mumbai
ANTOSYS: I presume you deduct Rs 1800, ie, 12% on Rs 15000 and contribute the same 1800 and thus the total Rs 3600 and not that you deduct Rs 3600 from the salary.
Out of Rs 1800 payable by the employer, Rs 1250, ie, 8.33% of 15000 will go to Pension Fund and this will not be reflected in the contribution status. Therefore, what is reflected in the PF account is the employee's contribution of Rs 1800 plus the employer contribution of Rs 550, ie, 1800 minus 1250, thus totaling Rs 2350.
Madhu.T.K
From India, Kannur
Out of Rs 1800 payable by the employer, Rs 1250, ie, 8.33% of 15000 will go to Pension Fund and this will not be reflected in the contribution status. Therefore, what is reflected in the PF account is the employee's contribution of Rs 1800 plus the employer contribution of Rs 550, ie, 1800 minus 1250, thus totaling Rs 2350.
Madhu.T.K
From India, Kannur
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