Dear All,
Hope you all have read PF circular about the hike in PF eligbibility Slab from 6500/- to 15000/-. Want you to please share your views on changes that we will now have on employee and employer contribution without disturbing the current CTC for the employees.
Looking forward for valuable inputs at the earliest, as we need to implement this from September 2014 salaries.
Thanks
Chakradhar Reddy.
From India, Hyderabad
3Hope you all have read PF circular about the hike in PF eligbibility Slab from 6500/- to 15000/-. Want you to please share your views on changes that we will now have on employee and employer contribution without disturbing the current CTC for the employees.
Looking forward for valuable inputs at the earliest, as we need to implement this from September 2014 salaries.
Thanks
Chakradhar Reddy.
From India, Hyderabad
Hi,
Please give me one CTC sample so according to that i may bifurcate.
1.Earlier your organization doesn't had the PF Code.if not then we may design without any changes in CTC but changes will having in Net Salary.
2. If Earlier contributing for PF then no need of to change CTC, continue with Same.
3. Only do that, whose basic is less than 15000, then start their remittance from 1st of September.
From India, Mumbai
Please give me one CTC sample so according to that i may bifurcate.
1.Earlier your organization doesn't had the PF Code.if not then we may design without any changes in CTC but changes will having in Net Salary.
2. If Earlier contributing for PF then no need of to change CTC, continue with Same.
3. Only do that, whose basic is less than 15000, then start their remittance from 1st of September.
From India, Mumbai
Hi,
The definition for ‘Basic Wages’ given by the RPFC, Chennai regional office is attached for your reference please.
Kindly go through the same and re-work your salary component if required.
Since the EPF wage ceiling has been enhanced from Rs. 6500/- to Rs. 15000/- with effect from 1st September’ 2014, kindly note that whatever the salary you are going to shown, except in the below mentioned components (categories), will attract PF, for the limit up to Rs. 15000/-.
• House Rent Allowance
• Dearness Allowance
• Case value of any food concession
• Overtime allowance
• Bonus
• Commission
“Section 2(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include
i. the cash value of any food concession;
ii. any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
iii. any presents made by the employer;”
Hence, we would suggest that, for employees getting less than Rs. 15000/- as gross wages, please avoid showing components in the heading like, ‘Travel Allowance, Special Allowance’ etc., to them, until get the clarity on components from the EPF department.
Please write to us in case you are looking for any professional support in this regard.
From India, Chennai
The definition for ‘Basic Wages’ given by the RPFC, Chennai regional office is attached for your reference please.
Kindly go through the same and re-work your salary component if required.
Since the EPF wage ceiling has been enhanced from Rs. 6500/- to Rs. 15000/- with effect from 1st September’ 2014, kindly note that whatever the salary you are going to shown, except in the below mentioned components (categories), will attract PF, for the limit up to Rs. 15000/-.
• House Rent Allowance
• Dearness Allowance
• Case value of any food concession
• Overtime allowance
• Bonus
• Commission
“Section 2(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include
i. the cash value of any food concession;
ii. any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
iii. any presents made by the employer;”
Hence, we would suggest that, for employees getting less than Rs. 15000/- as gross wages, please avoid showing components in the heading like, ‘Travel Allowance, Special Allowance’ etc., to them, until get the clarity on components from the EPF department.
Please write to us in case you are looking for any professional support in this regard.
From India, Chennai
EPF Now Changed on Slap on 1st Sep2014
Per Month Per Month
Salary Rs. 12,000.00 Rs. 15,000.00
Employee 12% Rs. 1,440.00 Rs. 1,800.00
Employer 13.61% Rs. 1,633.20 Rs. 2,041.50
Total 12% + 13.61% Rs. 3,073.20 Rs. 3,841.50
Employer to Pay Based Based
This A/c No Rs. 12000 Rs. 15000
Acc.No: 10 8.33% Rs. 999.60 Rs. 1,249.50
Acc.No:1 3.67% Rs. 440.40 Rs. 550.50
Acc.No:21 0.50% Rs. 60.00 Rs. 75.00
Acc.No:2 1.10% Rs. 132.00 Rs. 165.00
Acc.No:22 0.01% Rs. 1.20 Rs. 1.50
Total 13.61% Rs. 1,633.20 Rs. 2,041.50
From India, Chennai
Per Month Per Month
Salary Rs. 12,000.00 Rs. 15,000.00
Employee 12% Rs. 1,440.00 Rs. 1,800.00
Employer 13.61% Rs. 1,633.20 Rs. 2,041.50
Total 12% + 13.61% Rs. 3,073.20 Rs. 3,841.50
Employer to Pay Based Based
This A/c No Rs. 12000 Rs. 15000
Acc.No: 10 8.33% Rs. 999.60 Rs. 1,249.50
Acc.No:1 3.67% Rs. 440.40 Rs. 550.50
Acc.No:21 0.50% Rs. 60.00 Rs. 75.00
Acc.No:2 1.10% Rs. 132.00 Rs. 165.00
Acc.No:22 0.01% Rs. 1.20 Rs. 1.50
Total 13.61% Rs. 1,633.20 Rs. 2,041.50
From India, Chennai
M/s Pragnaa HR
It is not correct to say that Dearness allowance is not included in wage ceiling of Rs 15000/-.See the meaning of 'pay ' in para 2( f )and also see para 29 Of EPF scheme which includes DA also for wages liable for contribution.Contribution is payable for DA also if the wages including DA is up to or less than 15000/-pm.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
It is not correct to say that Dearness allowance is not included in wage ceiling of Rs 15000/-.See the meaning of 'pay ' in para 2( f )and also see para 29 Of EPF scheme which includes DA also for wages liable for contribution.Contribution is payable for DA also if the wages including DA is up to or less than 15000/-pm.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
SIR,
AS PER FOLLOWING DETAIL PLEASE LET KNOW THAT ON WHAT AMOIUNT PF BE DEDUCTED:-
SALARY 15050/-
HRA 2000/-
CONV. 800/-
SPEC.ALLOWANCE 2000/-
2nd SALARY 7000/-
CONV. 800/-
PLEASE CALCULATE EMPLOYEE AND EMPLOYER SHARE.
REGARDS.
VK.SOOD
From India, Ludhiana
AS PER FOLLOWING DETAIL PLEASE LET KNOW THAT ON WHAT AMOIUNT PF BE DEDUCTED:-
SALARY 15050/-
HRA 2000/-
CONV. 800/-
SPEC.ALLOWANCE 2000/-
2nd SALARY 7000/-
CONV. 800/-
PLEASE CALCULATE EMPLOYEE AND EMPLOYER SHARE.
REGARDS.
VK.SOOD
From India, Ludhiana
Dear sir
Earlier we are paying PF of each employee on 6500/-
Now How can we able to pay the PF On Basic +DA OR salary for the month
If Basic +DA What is the Percentage Taken for 60% Or 50%
Regards
srinivas
From India, Machilipatnam
Earlier we are paying PF of each employee on 6500/-
Now How can we able to pay the PF On Basic +DA OR salary for the month
If Basic +DA What is the Percentage Taken for 60% Or 50%
Regards
srinivas
From India, Machilipatnam
Mr Yadav You cannot reduce basic now as it is against sec 12 of EPF Act. Varghese Mathew
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Clarification about Contribution
After revision in wage ceiling from Rs.6500 to Rs.15000 w.e.f. 1.9.2014 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.15000 per month towards Employees’ Pension Scheme. The employer’s share in the Pension Scheme will be Rs.1250 w.e.f. 1.9.2014 (maximum).
Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is required to be paid upto a maximum limit of Rs.15000.
The employer also will pay administrative charges @ 0.01% on maximum limit of Rs.15000 whereas an exempted establishment will pay inspection charges @ 0.05% on the total wages paid.
Notes:
Wages upto a maximum of Rs.15000 towards wage (basic+DA).
Since an excluded employee i.e. drawing wages more than Rs.15000 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.20,000 per month, his share towards provident fund contribution will be Rs.2400 e.g. 12% and employer’s share towards provident fund contributioin will be Rs.550 and Rs.1250 towards Employees’ Pension Fund.
From India, Jamshedpur
After revision in wage ceiling from Rs.6500 to Rs.15000 w.e.f. 1.9.2014 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.15000 per month towards Employees’ Pension Scheme. The employer’s share in the Pension Scheme will be Rs.1250 w.e.f. 1.9.2014 (maximum).
Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is required to be paid upto a maximum limit of Rs.15000.
The employer also will pay administrative charges @ 0.01% on maximum limit of Rs.15000 whereas an exempted establishment will pay inspection charges @ 0.05% on the total wages paid.
Notes:
Wages upto a maximum of Rs.15000 towards wage (basic+DA).
Since an excluded employee i.e. drawing wages more than Rs.15000 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.20,000 per month, his share towards provident fund contribution will be Rs.2400 e.g. 12% and employer’s share towards provident fund contributioin will be Rs.550 and Rs.1250 towards Employees’ Pension Fund.
From India, Jamshedpur
Dear Sirs,
In addition to the clarification on contribution towards Pension Scheme, EDLI, wish to add the following rates of contribution.
SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S
Provident Fund Scheme 12% 3.67% NIL
EDLI Scheme NIL 0.5 NIL
Pension Scheme NIL 8.33% 1.16% (on wages up to max 15000)
EPF Admin Charges NIL 1.1% NIL
EDLI Admn. Charges NIL 0.01% NIL
Regards
T M Rao
From India, Jamshedpur
In addition to the clarification on contribution towards Pension Scheme, EDLI, wish to add the following rates of contribution.
SCHEME EMPLOYEE’S EMPLOYER’S CENTRAL GOVT’S
Provident Fund Scheme 12% 3.67% NIL
EDLI Scheme NIL 0.5 NIL
Pension Scheme NIL 8.33% 1.16% (on wages up to max 15000)
EPF Admin Charges NIL 1.1% NIL
EDLI Admn. Charges NIL 0.01% NIL
Regards
T M Rao
From India, Jamshedpur
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