Dear Friends,
I am Abhilasha working as a HR in a IT company.
I have query regarding new PF contribution rules, The Provident Fund Pension Ceiling increased from Rs.6,500.00 to Rs.15,000.00 effective from 1st September 2014.
Generally PF contribution calculated on Basic + D. A. , but in my company we are having some different CTC structure.
For. Ex.
Basic 160,800
House Rent allowance (HRA) 64,320
Conveyance allowance 9,600
Medical reimbursements 15,000
Other allowances 132,920
PF 9,360
Total Annual CTC 392,000
Old salary structure PF consider as fix basic 6500/- . also now we are planning to fix basic 15K for PF amount calculation.
My question is, As per this basic is 160,800/- PA and per month 13400/- which is less than 15k,so can we calculate PF amount 12% on 13400/- or we need to calculate PF amount on Basic + Other allowances on this total's 12% or 12% on 15000 whatever is minimum.
Sharing here one more CTC structures, which having basic per month more than 15K
For. Ex.
Basic 270,000
House Rent allowance (HRA) 108,000
Conveyance allowance 9,600
Medical reimbursements 15,000
Other allowances 253,040
PF 9,360
Total Annual CTC 665,000
In that we will calculate PF amount 12% on 15000/- i. e. 1800/-
Thanks
Abhilasha
From India, Pune
I am Abhilasha working as a HR in a IT company.
I have query regarding new PF contribution rules, The Provident Fund Pension Ceiling increased from Rs.6,500.00 to Rs.15,000.00 effective from 1st September 2014.
Generally PF contribution calculated on Basic + D. A. , but in my company we are having some different CTC structure.
For. Ex.
Basic 160,800
House Rent allowance (HRA) 64,320
Conveyance allowance 9,600
Medical reimbursements 15,000
Other allowances 132,920
PF 9,360
Total Annual CTC 392,000
Old salary structure PF consider as fix basic 6500/- . also now we are planning to fix basic 15K for PF amount calculation.
My question is, As per this basic is 160,800/- PA and per month 13400/- which is less than 15k,so can we calculate PF amount 12% on 13400/- or we need to calculate PF amount on Basic + Other allowances on this total's 12% or 12% on 15000 whatever is minimum.
Sharing here one more CTC structures, which having basic per month more than 15K
For. Ex.
Basic 270,000
House Rent allowance (HRA) 108,000
Conveyance allowance 9,600
Medical reimbursements 15,000
Other allowances 253,040
PF 9,360
Total Annual CTC 665,000
In that we will calculate PF amount 12% on 15000/- i. e. 1800/-
Thanks
Abhilasha
From India, Pune
Hi Abhilasha,
It simply means that the employee whose Basic salary is above 6500 and 15000 or less shall be included in the Pf scheme. It does not mean that you have to increase the salary.
Earlier it was optional for the employer to deduct the PF of those employees whose basic salary is above 6500. But most of the companies do cut PF on whatever the basic salary is. Now it is mandatory to Deduct the PF whose basic salary is between 6500 and 1500.
Explanation for Your Case:
1st example: Calculate the Pf contribution only on his basic salary and not on BASIC+allowances. i.e. on 13400.
2nd Example:
My introduction: your calculation is right.
Just simply understand that all the employees whose basic salry is 15000 or less will be applicale for the pf contribution on their respective salary.
My Introduction:
This is Alok. I am a cite Hr member and have completed my MBA-HR,DLL and now working as HR trainee at Cosmo films public ltd. I will be glad to exchange ideas and share knowledge. As i have recently begun my career in this profession, i am also looking forward for professional networking.
Please feel free to write me at
. Would like to know your emailid, so that i can send it from my company mailid.
I would be willing to share HR knowledge and Professional networking.
Regrds.
From India, Pune
21It simply means that the employee whose Basic salary is above 6500 and 15000 or less shall be included in the Pf scheme. It does not mean that you have to increase the salary.
Earlier it was optional for the employer to deduct the PF of those employees whose basic salary is above 6500. But most of the companies do cut PF on whatever the basic salary is. Now it is mandatory to Deduct the PF whose basic salary is between 6500 and 1500.
Explanation for Your Case:
1st example: Calculate the Pf contribution only on his basic salary and not on BASIC+allowances. i.e. on 13400.
2nd Example:
My introduction: your calculation is right.
Just simply understand that all the employees whose basic salry is 15000 or less will be applicale for the pf contribution on their respective salary.
My Introduction:
This is Alok. I am a cite Hr member and have completed my MBA-HR,DLL and now working as HR trainee at Cosmo films public ltd. I will be glad to exchange ideas and share knowledge. As i have recently begun my career in this profession, i am also looking forward for professional networking.
Please feel free to write me at
I would be willing to share HR knowledge and Professional networking.
Regrds.
From India, Pune
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf