Dear colleges to recover more than Rs. 780/- (basic of Rs. 6500/- or so) there is need of consent by the individual and hence any recovery over and above Rs. 780/- should not be there. Any recovery over and above Rs. 780/- should come down. No chance to recover more.
From India, Nellore
24From India, Nellore
Dear Sir,
Any one clarify me why EPF deducted on more 6500/- basic salary.
Not on 6500/- if basic salary is more than that.
Just explain the rules of EPF deduction
If Gross Salary is 1,25,000 & Basic Salary Is Rs-50000/-
if Gross Salary is 15200/- & Basic salary is Rs-8000/-
If Gross Salary is 12000/- & Basic salary Is Rs-6500/-
If Gross Salary Is 10000/- & Basic salary is Rs-3500/-
Pls suggest the deduction of EPF on above 4 conditions.
Regards
Ali
From India, Faridabad
Any one clarify me why EPF deducted on more 6500/- basic salary.
Not on 6500/- if basic salary is more than that.
Just explain the rules of EPF deduction
If Gross Salary is 1,25,000 & Basic Salary Is Rs-50000/-
if Gross Salary is 15200/- & Basic salary is Rs-8000/-
If Gross Salary is 12000/- & Basic salary Is Rs-6500/-
If Gross Salary Is 10000/- & Basic salary is Rs-3500/-
Pls suggest the deduction of EPF on above 4 conditions.
Regards
Ali
From India, Faridabad
Dear u can change the deduction on rs. 6500, for this u have to intimate the epf deptt. before doing this and u can change the deduction structure. hope u will clear thnx
From India, New Delhi
From India, New Delhi
Dear Mr. Ali
According to all replies everyone talking about 6500, which is ceiling rate, u should understand it. As per EPFO rules PF can be deducted upto Rs.6500 basic whether basic might be more or less as per your pay structure. If you want to deduct on more basic then u can do it if employee & employer do agree with the same but employer is not bound to contribute on more than 6500 basic.
Now you self decide in all of 4 cases given by you.
From India, Faridabad
According to all replies everyone talking about 6500, which is ceiling rate, u should understand it. As per EPFO rules PF can be deducted upto Rs.6500 basic whether basic might be more or less as per your pay structure. If you want to deduct on more basic then u can do it if employee & employer do agree with the same but employer is not bound to contribute on more than 6500 basic.
Now you self decide in all of 4 cases given by you.
From India, Faridabad
Dear All The basic salary of the employee its depend upon the minimum wages of the respective state. PF calculate as per basic salary. You can increase the basic salary but can’t reduce
From India, Mumbai
From India, Mumbai
Dear Mr. R N Rajan
Well there are two perspectives here.
Legal: As far as my legal knowledge goes, the provisions of The Employee Provident Funds and Miscellaneous Provisions Act, 1952 are not violated by deducting the contribution on the maximum slab of Rs.6,500. There is no provision in the Act which states that the contribution amount if reduced would amount to violation of the Act.
Practical Compliance: From the compliance perspective, your case might come under the notice of the Regional Compliance Officer as the aggregate contribution would drastically come down in respect of existing employees as reflected in the ECR filed monthly. However, in order to safeguard your side, I recommend that you take a declaration from the concerned employees that they are willing to reduce the statutory contribution of both the employer and themselves, to maximimun slab of Rs.6,500. The savings thereof be added to the cash out salary, without affecting the Gross Salary
Thus, it is within your rights to reduce the contribution on Rs.6500 for existing employees.
From India, Pune
Well there are two perspectives here.
Legal: As far as my legal knowledge goes, the provisions of The Employee Provident Funds and Miscellaneous Provisions Act, 1952 are not violated by deducting the contribution on the maximum slab of Rs.6,500. There is no provision in the Act which states that the contribution amount if reduced would amount to violation of the Act.
Practical Compliance: From the compliance perspective, your case might come under the notice of the Regional Compliance Officer as the aggregate contribution would drastically come down in respect of existing employees as reflected in the ECR filed monthly. However, in order to safeguard your side, I recommend that you take a declaration from the concerned employees that they are willing to reduce the statutory contribution of both the employer and themselves, to maximimun slab of Rs.6,500. The savings thereof be added to the cash out salary, without affecting the Gross Salary
Thus, it is within your rights to reduce the contribution on Rs.6500 for existing employees.
From India, Pune
Dear Rajen,
Your management has taken the decision is currect, As per the PF rule we need to calculate PF on basic salary max Rs.6500/- of max contribution 780/-. If we calculate the basic salary on actual salary and the contribution is more than 780/-, the management is accept to pay employer contribution more than 780/- you can deduct other wise you can consider max.780/-.
Venkat.V
HR-Incharge
AP
From India, Hyderabad
Your management has taken the decision is currect, As per the PF rule we need to calculate PF on basic salary max Rs.6500/- of max contribution 780/-. If we calculate the basic salary on actual salary and the contribution is more than 780/-, the management is accept to pay employer contribution more than 780/- you can deduct other wise you can consider max.780/-.
Venkat.V
HR-Incharge
AP
From India, Hyderabad
The maximum limit for basic salary is 6500. If you show more than 6500 its your wish. But pf department will have no problem for a new employee to receive even the minimum pf based on gross salary.
From India, Bangalore
From India, Bangalore
to one of my friends, service nod format for senior level so that he stays at least, fro 2-3 years, after joining
I have seen many postings on gross salary for EPF recovery.It is seen that many members still have doubts on it.Suppose the wages of an employee is Rs 10000/- pm. There are three ways of contribution practiced in companies. They are;
1)Both employer and employee contribute @12% of 6500/-This the maximum statutory liability of employer and employee.Employer has to pay Adm charges on Rs 6500/-only.
2)Employee contribute 12% of Rs 10000/-,but employer contribute 12% of Rs6500/-only.
3)Both employer and employee contribute 12%of Rs 10000/-
In case 2) and 3) the employer has to pay admn charges on Rs 10000/-
Varghese Mathew
09961266966
From India, Thiruvananthapuram
1)Both employer and employee contribute @12% of 6500/-This the maximum statutory liability of employer and employee.Employer has to pay Adm charges on Rs 6500/-only.
2)Employee contribute 12% of Rs 10000/-,but employer contribute 12% of Rs6500/-only.
3)Both employer and employee contribute 12%of Rs 10000/-
In case 2) and 3) the employer has to pay admn charges on Rs 10000/-
Varghese Mathew
09961266966
From India, Thiruvananthapuram
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