Hi..
PF is been deducted 12% of Basic+DA/ Basic only if DA is not there. It is been contributed from both the sides i.e employees and employer.
Out of 12% contributed from employer, 8.33% goes to Pension fund where as the rest 3.67% goes to the PF fund itself.
that is 24-8.33% = 15.67 % goes to PF.
The maximum ceiling for PF deduction is 6500/- basic, if it exceeds the employee can continiue to be a member but his maximum contribution in the fund would remain constant i.e 12% of 6500/- only.
Hope now it will be very much clear with you...
Regards,
Amit Seth.
From India, Ahmadabad
496PF is been deducted 12% of Basic+DA/ Basic only if DA is not there. It is been contributed from both the sides i.e employees and employer.
Out of 12% contributed from employer, 8.33% goes to Pension fund where as the rest 3.67% goes to the PF fund itself.
that is 24-8.33% = 15.67 % goes to PF.
The maximum ceiling for PF deduction is 6500/- basic, if it exceeds the employee can continiue to be a member but his maximum contribution in the fund would remain constant i.e 12% of 6500/- only.
Hope now it will be very much clear with you...
Regards,
Amit Seth.
From India, Ahmadabad
dear amit.
I want to add one thing that,according to Pf law there is two option that
1.) The maximum ceiling for PF deduction is 6500/- basic, if it exceeds the employee can continiue to be a member and his maximum contribution in the fund would remain constant i.e 12% of 6500/- only.
2.) or define the pf according to the basic(12% of basic,whatever salary is increased).
Deepika
From India, New Delhi
I want to add one thing that,according to Pf law there is two option that
1.) The maximum ceiling for PF deduction is 6500/- basic, if it exceeds the employee can continiue to be a member and his maximum contribution in the fund would remain constant i.e 12% of 6500/- only.
2.) or define the pf according to the basic(12% of basic,whatever salary is increased).
Deepika
From India, New Delhi
Hi Deepika, I am not getting what exactly you want to say.. Please clarify more.. Regards, Amit Seth.
From India, Ahmadabad
From India, Ahmadabad
Amit,
Well actually i spoke to few of my colleagues on this and as per them also their companies are giving PF on 6500/- only even if the basic is more. Same is there in our company. And the reason they all gave is 6500/- cieling limit which is not mandatory but is a option provided by PF . You may continue to contribute on actual basic or limit it on 6500/-
deepika
From India, New Delhi
Well actually i spoke to few of my colleagues on this and as per them also their companies are giving PF on 6500/- only even if the basic is more. Same is there in our company. And the reason they all gave is 6500/- cieling limit which is not mandatory but is a option provided by PF . You may continue to contribute on actual basic or limit it on 6500/-
deepika
From India, New Delhi
hi smita
PF is the social security scheme, wherein both the employer and the employer must contribute an equal amout of share ( ie 12% each) .
2.from the employer share, 8.33% goes to the Pension fund of the employee and 3.67% goes to the employees provident fund. 3. the salary limit is Rs.6500/- for PF deduction. But since PF being a security for all the employees, irrespective of the salary limit, cover all the employees under PF and deduct. 4. The maximum amount for Pension deduction is Rs.541. over and above have to be added with the employers share.
please do not worry about the limitation and ceiling etc. just cover all employees under PF. thereby you can motivate and promote monthly savings for the employees.
further doubt feel free to ask. also you may contact to my personal ID :
regards
r devarajan
From India, Madras
PF is the social security scheme, wherein both the employer and the employer must contribute an equal amout of share ( ie 12% each) .
2.from the employer share, 8.33% goes to the Pension fund of the employee and 3.67% goes to the employees provident fund. 3. the salary limit is Rs.6500/- for PF deduction. But since PF being a security for all the employees, irrespective of the salary limit, cover all the employees under PF and deduct. 4. The maximum amount for Pension deduction is Rs.541. over and above have to be added with the employers share.
please do not worry about the limitation and ceiling etc. just cover all employees under PF. thereby you can motivate and promote monthly savings for the employees.
further doubt feel free to ask. also you may contact to my personal ID :
regards
r devarajan
From India, Madras
Dear Smitha,
Regarding PF Contribution -Employer should pay 12% of Basic salary, in which 8.33% will goes to Pension Scheme balance 3.67 will goes to PF.
While calculating the Pension Scheme employer should pay 8.33% of basic (limit is upto Rs.6500/ ie Rs.541/-) not more than that rest will goes to PF.
say for eg. if the employees is getting Basic salary of Rs.8000/- Rs.541/-(8.33%) will goes to pension scheme and Rs.419/- will goes to PF, however employer has to contribute 12% of basic, whatever be the amount.
Regarding Employee Contirbution of 12% from basic is unavoidable as per the PF act.
Please go thru ppt. for more details
Regards'
Mohan,Zen HR
From India, Madras
Regarding PF Contribution -Employer should pay 12% of Basic salary, in which 8.33% will goes to Pension Scheme balance 3.67 will goes to PF.
While calculating the Pension Scheme employer should pay 8.33% of basic (limit is upto Rs.6500/ ie Rs.541/-) not more than that rest will goes to PF.
say for eg. if the employees is getting Basic salary of Rs.8000/- Rs.541/-(8.33%) will goes to pension scheme and Rs.419/- will goes to PF, however employer has to contribute 12% of basic, whatever be the amount.
Regarding Employee Contirbution of 12% from basic is unavoidable as per the PF act.
Please go thru ppt. for more details
Regards'
Mohan,Zen HR
From India, Madras
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From India, Pune
From India, Pune
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls