Respected Seniors/Friends,
The Government has approved the increase of PF wage to Rs.15000/- per month. Enclosed herewith the most awaited Notification regarding the same published today itself:
The following may be the impact after the amendment:
1. The employees whose monthly Basic wages is Rs.15000/- and above and the company who is currently paying PF limited to Rs.6500/- for such employees may have to increase the contribution limit at least on Rs.15000/-. ( As per the section 6 of the PF Act , Equal Contribution to be provided by the employer) .
2. The employees who have already opted out from PF coverage ( whose basic is above Rs.6500) should be covered under the scheme incase their Basic Wages is up Rs.15000/- per month).
3. The companies who are currently extending PF benefit only on Rs.6500/- irrespective of their wages , may have to increase the PF wages to Rs.15000/- and need to pay the employer contribution of 13.61% on Rs.15000/-
4. The pension amount maximum limit also may increase from Rs.541/- to Rs.1000/-.
5. The employees who current basis wages is less than Rs.15000/- may have to pay the contribution on the actual basic payable.
From India, Jabalpur
21The Government has approved the increase of PF wage to Rs.15000/- per month. Enclosed herewith the most awaited Notification regarding the same published today itself:
The following may be the impact after the amendment:
1. The employees whose monthly Basic wages is Rs.15000/- and above and the company who is currently paying PF limited to Rs.6500/- for such employees may have to increase the contribution limit at least on Rs.15000/-. ( As per the section 6 of the PF Act , Equal Contribution to be provided by the employer) .
2. The employees who have already opted out from PF coverage ( whose basic is above Rs.6500) should be covered under the scheme incase their Basic Wages is up Rs.15000/- per month).
3. The companies who are currently extending PF benefit only on Rs.6500/- irrespective of their wages , may have to increase the PF wages to Rs.15000/- and need to pay the employer contribution of 13.61% on Rs.15000/-
4. The pension amount maximum limit also may increase from Rs.541/- to Rs.1000/-.
5. The employees who current basis wages is less than Rs.15000/- may have to pay the contribution on the actual basic payable.
From India, Jabalpur
Dear sir,
Please, understand me this concept same like 6500/- limit for epf deduction and 15,000/- above salary person can get exemption for pf deduction, after filled up form 11(revised).
Nilesh Bhatt
From India, Vadodara
Please, understand me this concept same like 6500/- limit for epf deduction and 15,000/- above salary person can get exemption for pf deduction, after filled up form 11(revised).
Nilesh Bhatt
From India, Vadodara
Hi Nilesh, The concept and calculation shall remains same but the ceiling will be increased form Rs. 6500 to Rs.15000 w.e.f 1st September 2014.
From India, Jabalpur
From India, Jabalpur
Chaturvedi Sir,
I have little confusion on sr. no. 4 where you have mentioned the pension amount maximum limit also may increase from Rs.541/- to Rs.1000/-. I think calculation process remain same pension fund must be calculated on actual basic but not more than on 15000/- basic wage i.e. maximum 1250/-.
e.g.
1. Basic Wage 7800
Employee share 936/-
Employer share EPF 286/-
EPS 650/-
2. Basic Wage 15000
Employee share 1800/-
Employer share EPF 550/-
EPS 1250/-
3. Basic Wage 18000
Employee Share 2160/-
Employer Share EPF 9
And I think notification talking about pension amount not about the pension fund share. Am I right if not then please explain it with example I will be grateful to you.
From India, Mumbai
I have little confusion on sr. no. 4 where you have mentioned the pension amount maximum limit also may increase from Rs.541/- to Rs.1000/-. I think calculation process remain same pension fund must be calculated on actual basic but not more than on 15000/- basic wage i.e. maximum 1250/-.
e.g.
1. Basic Wage 7800
Employee share 936/-
Employer share EPF 286/-
EPS 650/-
2. Basic Wage 15000
Employee share 1800/-
Employer share EPF 550/-
EPS 1250/-
3. Basic Wage 18000
Employee Share 2160/-
Employer Share EPF 9
And I think notification talking about pension amount not about the pension fund share. Am I right if not then please explain it with example I will be grateful to you.
From India, Mumbai
Chaturvedi Sir,
I have little confusion on sr. no. 4 where you have mentioned the pension amount maximum limit also may increase from Rs.541/- to Rs.1000/-. I think calculation process remain same pension fund must be calculated on actual basic but not more than on 15000/- basic wage i.e. maximum 1250/-.
e.g.
1. Basic Wage 7800
Employee share 936/-
Employer share EPF 286/-
EPS 650/-
2. Basic Wage 15000
Employee share 1800/-
Employer share EPF 550/-
EPS 1250/-
3. Basic Wage 18000
Employee Share 2160/-
Employer Share EPF 910/-
Employer Share EPS 1250/-
Third case depends upon the policy of the company or on employer's wish whether he want to pay PF on more than 15000/- or not.
And I think notification talking about pension amount not about the pension fund share. Please clear my doubt and correct me if I am wrong.
Thanks & Regards,
Shailza
From India, Mumbai
I have little confusion on sr. no. 4 where you have mentioned the pension amount maximum limit also may increase from Rs.541/- to Rs.1000/-. I think calculation process remain same pension fund must be calculated on actual basic but not more than on 15000/- basic wage i.e. maximum 1250/-.
e.g.
1. Basic Wage 7800
Employee share 936/-
Employer share EPF 286/-
EPS 650/-
2. Basic Wage 15000
Employee share 1800/-
Employer share EPF 550/-
EPS 1250/-
3. Basic Wage 18000
Employee Share 2160/-
Employer Share EPF 910/-
Employer Share EPS 1250/-
Third case depends upon the policy of the company or on employer's wish whether he want to pay PF on more than 15000/- or not.
And I think notification talking about pension amount not about the pension fund share. Please clear my doubt and correct me if I am wrong.
Thanks & Regards,
Shailza
From India, Mumbai
Hi Shailza,
Your understanding regarding Pension is absolutely correct. Yes, and notification talking about pension amount not about the EPS that is 1250 on 15000/-.
It was a typo and I appreciate your observation over the same.
From India, Jabalpur
Your understanding regarding Pension is absolutely correct. Yes, and notification talking about pension amount not about the EPS that is 1250 on 15000/-.
It was a typo and I appreciate your observation over the same.
From India, Jabalpur
Dear sir,
My organisation currently follows a practice of flat 12% PF deduction from employees.My organisation is also compliant to minimum wage guidelines. Would appreciate your guidance to understand the impact and changes that I need to introduce in my organisation following this notification.
Best wishes and Regards
From India, Kolkata
My organisation currently follows a practice of flat 12% PF deduction from employees.My organisation is also compliant to minimum wage guidelines. Would appreciate your guidance to understand the impact and changes that I need to introduce in my organisation following this notification.
Best wishes and Regards
From India, Kolkata
Dear Friends,
The notification has created a challenge for HR professionals. While one side, the employee has to increase his contribution, the other side management also need to increase its contribution. The take home salary will go down and will increase the HR cost of the companies. While the objective of the notification is appreciable, the huge rise from 6500/- to 15000/- has put many companies in difficult situation at this challenging economic scenario.
I would like to request senior members/professionals how companies can address this challenge such a way that both employee and employer take minimum impact.
Regards
Bhavan
From India, Bangalore
The notification has created a challenge for HR professionals. While one side, the employee has to increase his contribution, the other side management also need to increase its contribution. The take home salary will go down and will increase the HR cost of the companies. While the objective of the notification is appreciable, the huge rise from 6500/- to 15000/- has put many companies in difficult situation at this challenging economic scenario.
I would like to request senior members/professionals how companies can address this challenge such a way that both employee and employer take minimum impact.
Regards
Bhavan
From India, Bangalore
Dear Bhavan
just go thru the msg of Shailza, u will get clear.
from the recent pf pension fund notification, everything will be the same deduction on account of PF. only thing is contribution to Provident fund share is increasing.
ultimately govt need more money from this pf pension fund.
employer/employee is not giving more, employee is sharing the pf saving fund to pension fund.
Hope I understood in correct way.
Regds...Mathan
From India, Madras
just go thru the msg of Shailza, u will get clear.
from the recent pf pension fund notification, everything will be the same deduction on account of PF. only thing is contribution to Provident fund share is increasing.
ultimately govt need more money from this pf pension fund.
employer/employee is not giving more, employee is sharing the pf saving fund to pension fund.
Hope I understood in correct way.
Regds...Mathan
From India, Madras
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Splitting of minimum wages for PF in abeyance (1).pdf