In my organisation few employees who are been impacted by increase in ESI limit want to opt out of PF contribution or reduce PF contribution to minimum of 780 /- RS Flat ( 12 % of 6500 ) by submitting a declaration.
Kindly suggest if it's possible ?
From India, Delhi
Kindly suggest if it's possible ?
From India, Delhi
As per epf actthe employers liability is limited to rs.780/- rest depends on management policy.
From India, New Delhi
7From India, New Delhi
Hi Shish Thanks for your response !! What if someone is paying more PF contribution currently & wants to limit it to 780 in future... is there any provision to reduce the contribution ??
From India, Delhi
From India, Delhi
No you can not reduce.
It's compulsory to deduct upto Rs.6500 basic.If basic is less than Rs.6500 then you have to deduct less amount.
If basic is Rs.5000 then 12% would Rs.600/ only
You can see in P.F. website.
Thanks,
minal
From India, Vadodara
It's compulsory to deduct upto Rs.6500 basic.If basic is less than Rs.6500 then you have to deduct less amount.
If basic is Rs.5000 then 12% would Rs.600/ only
You can see in P.F. website.
Thanks,
minal
From India, Vadodara
Hi Sish,
Kindly tell me which rule or amendment in PF asks an employer to limit the PF contri till 780/-. What I know about the PF, there is no such rule..........
If an employee comes in the PF bracket then he/she has to pay 12%, but if company is providing PF to employees with basic more than 65oo/- then too it's 12% of the basic............
Any views on this????
From India, New Delhi
Kindly tell me which rule or amendment in PF asks an employer to limit the PF contri till 780/-. What I know about the PF, there is no such rule..........
If an employee comes in the PF bracket then he/she has to pay 12%, but if company is providing PF to employees with basic more than 65oo/- then too it's 12% of the basic............
Any views on this????
From India, New Delhi
Dear All,
As pf all company covered under pf act should deduct 12% with people upto Rs. 6500/- basic salary, if any company is deducting 12% of actual basic salary e.g 12 % of 10000/- i.e 1200 then they cannot reduce it to 12% of Rs. 6500/0 i.e. Rs. 780/- also if any basic salary is less than Rs. 6500 then 12% of actual basic, but if he exceed his basic salary above Rs. 6500/- still you will have to continue deduction may 12% of actual basic if it is followed with other staff of 12% of Rs. 6500/- as per the act.
Thanks & Regards
From India, Gurgaon
As pf all company covered under pf act should deduct 12% with people upto Rs. 6500/- basic salary, if any company is deducting 12% of actual basic salary e.g 12 % of 10000/- i.e 1200 then they cannot reduce it to 12% of Rs. 6500/0 i.e. Rs. 780/- also if any basic salary is less than Rs. 6500 then 12% of actual basic, but if he exceed his basic salary above Rs. 6500/- still you will have to continue deduction may 12% of actual basic if it is followed with other staff of 12% of Rs. 6500/- as per the act.
Thanks & Regards
From India, Gurgaon
dear Himansu,
as per PF Act an employees PF can be deducted in minimum 6500. basic even if there salary rise from 6500 to more.
but the think is that being an HR you have to guide ur employees properly tell them PF and ESI both are different. in pf if a higher pf rate is deducted in high value similarly employer Contribution of same amount also added. which is better in for future and pension program.
second if any person died then at the high rate there pension also calculated so it is also an advantage for there dependents too.
third most important the PF interest value is higher than any other interest rate given in current market or by Bank so guide them properly.
From India, Angul
as per PF Act an employees PF can be deducted in minimum 6500. basic even if there salary rise from 6500 to more.
but the think is that being an HR you have to guide ur employees properly tell them PF and ESI both are different. in pf if a higher pf rate is deducted in high value similarly employer Contribution of same amount also added. which is better in for future and pension program.
second if any person died then at the high rate there pension also calculated so it is also an advantage for there dependents too.
third most important the PF interest value is higher than any other interest rate given in current market or by Bank so guide them properly.
From India, Angul
Dear Seniors,
In our company, we are deducting PF 12% on actual basic salary even the salary exceeds Rs.6500/-. While enquiring Form 23 at our EPF office, the accounts officer asked me how you can remit more contribution above the ceiling limit of Rs,6500/- if your mgmt wish to continue PF deduction for actuals above Rs.6500/- you have to get permission from EPFO. Then i asked the mam the format for applying permission but she told that we had found the mistake and we will send a notice to your org and then you apply for the same.
Pls clarify is there any prior permission is required for additional contribution?
look forward to your valuable guidance.
Regards,
b.saravanakumar
From India, Coimbatore
In our company, we are deducting PF 12% on actual basic salary even the salary exceeds Rs.6500/-. While enquiring Form 23 at our EPF office, the accounts officer asked me how you can remit more contribution above the ceiling limit of Rs,6500/- if your mgmt wish to continue PF deduction for actuals above Rs.6500/- you have to get permission from EPFO. Then i asked the mam the format for applying permission but she told that we had found the mistake and we will send a notice to your org and then you apply for the same.
Pls clarify is there any prior permission is required for additional contribution?
look forward to your valuable guidance.
Regards,
b.saravanakumar
From India, Coimbatore
Dear Mr. Saravan Kumar,
There such prior permission is required for deduction of additional contribution because you are not violating any rule related to P.F. Act even you are contibuting more than the rule says.
Regards
Rajesh Chakraborty
From India, New Delhi
There such prior permission is required for deduction of additional contribution because you are not violating any rule related to P.F. Act even you are contibuting more than the rule says.
Regards
Rajesh Chakraborty
From India, New Delhi
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PF - TAKE HOME SALARY REDUCE NOW.pdf