any rule which says pf amount rs.780 standard towards all employees is deductible in a IT software company
From India, Madras
1From India, Madras
Dear Abrahamdeepa,
The highest ceiling to cover the PF is Rupees 6500/ basic.
The statutory requirement of contribution from that amount is 12%. Therefore the 12% of 6500 is 780.
This is applicable to all type of coverable organisations, not only to IT Software Companies.
Hope I made it clear..
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Coimbatore
The highest ceiling to cover the PF is Rupees 6500/ basic.
The statutory requirement of contribution from that amount is 12%. Therefore the 12% of 6500 is 780.
This is applicable to all type of coverable organisations, not only to IT Software Companies.
Hope I made it clear..
S.Sethupathy,
Excellent HR Services,
Erode.
From India, Coimbatore
Dear Mr.Sethupathy,
I am clear with this highest ceiling of rs.6500 basic of 12% rs.780 is pf detectable for each employee. but i want to know whether this can be standard for all employee because salary vary for each every employee were pf will also vary.
regards
abrahamdeepa
From India, Madras
I am clear with this highest ceiling of rs.6500 basic of 12% rs.780 is pf detectable for each employee. but i want to know whether this can be standard for all employee because salary vary for each every employee were pf will also vary.
regards
abrahamdeepa
From India, Madras
Dear Abrahamdeepa
PF Can be deducted to any amount but it must be above or at par with the Minimum Wages fixed by the Appropriate Government from time to time. PF is deducted as 12% of Basic Wages + DA. There is no restriction for deducting the PF in higher level.
If you deduct PF 12% for Rs. 20000/- for a person then
12% Employee Contribution = Rs. 2400/-
8.33% EPS (Pension) = Rs. 541/-
3.67% Employer PF = Rs. 1859/-
Hope I need not to explain about the Admin Charges 1.1%, EDLI Contribution 0.5% & EDLI Admin Charges 0.01%. Altogether we have to remit 25.61% of Basic Amount+DA to PF Office
If Basic % DA is less than Rs.6500/- then the Actuals will appear in 8.33% and 3.67%, otherwise, it should be made as mentioned above.
If you deduct PF for all the employees then it will be useful for all the employees to show it for tax exemption under Section 80C, and it will become as like a corpus fund for their future after retirement.
From India, Kumbakonam
PF Can be deducted to any amount but it must be above or at par with the Minimum Wages fixed by the Appropriate Government from time to time. PF is deducted as 12% of Basic Wages + DA. There is no restriction for deducting the PF in higher level.
If you deduct PF 12% for Rs. 20000/- for a person then
12% Employee Contribution = Rs. 2400/-
8.33% EPS (Pension) = Rs. 541/-
3.67% Employer PF = Rs. 1859/-
Hope I need not to explain about the Admin Charges 1.1%, EDLI Contribution 0.5% & EDLI Admin Charges 0.01%. Altogether we have to remit 25.61% of Basic Amount+DA to PF Office
If Basic % DA is less than Rs.6500/- then the Actuals will appear in 8.33% and 3.67%, otherwise, it should be made as mentioned above.
If you deduct PF for all the employees then it will be useful for all the employees to show it for tax exemption under Section 80C, and it will become as like a corpus fund for their future after retirement.
From India, Kumbakonam
Dear Mr.Sethupathy,
yes, salary vary for upper scale where basic will differ and automatically pf % will diff. this is done in my preivous company which was fortune 500 MNC but in current company it is standard for all Rs.780. My doubt whether this is applicable.
regards,
Abrahamdeepa
From India, Madras
yes, salary vary for upper scale where basic will differ and automatically pf % will diff. this is done in my preivous company which was fortune 500 MNC but in current company it is standard for all Rs.780. My doubt whether this is applicable.
regards,
Abrahamdeepa
From India, Madras
Dear Abrahamdeepa,
Greetings for the day,
First of all it should be noted that for deduction of EPF the following component of salary/wages should be consider (Basic+da/vda+food consession if any). Secondly once a member enrolled for epf he will never be excluded until he remain in service. Thirdly as far as Rs. 6500/- is concern it is a cealing for EPS/EDLI not for EPF as stated earlier with the component describe on whom the deduction of epf should be done.
Last but not least it is totally depend on the company if they pay the contribution on the actual basic or on the EPS cealing. If the company is ready to pay the EPF contribution on actual basic, the contribution of eps & edli will be on Rs. 6500/- rather than the actual basic.
thanks & regards,
From,
Sumit Kumar Saxena,
9899669071, 0120-4131277
From India, Ghaziabad
Greetings for the day,
First of all it should be noted that for deduction of EPF the following component of salary/wages should be consider (Basic+da/vda+food consession if any). Secondly once a member enrolled for epf he will never be excluded until he remain in service. Thirdly as far as Rs. 6500/- is concern it is a cealing for EPS/EDLI not for EPF as stated earlier with the component describe on whom the deduction of epf should be done.
Last but not least it is totally depend on the company if they pay the contribution on the actual basic or on the EPS cealing. If the company is ready to pay the EPF contribution on actual basic, the contribution of eps & edli will be on Rs. 6500/- rather than the actual basic.
thanks & regards,
From,
Sumit Kumar Saxena,
9899669071, 0120-4131277
From India, Ghaziabad
This is for everyone's kind notice, as per new ruling, for the purpose of deciding basic one has to take entire minimum wage as a basic, unlike earlier practice
where minimum wage could be split into different heads viz.hra,washing allowance,or travelling allw. it would be great if any could share the soft ruling copy pf department....
From India, Madgaon
where minimum wage could be split into different heads viz.hra,washing allowance,or travelling allw. it would be great if any could share the soft ruling copy pf department....
From India, Madgaon
yes you are true that minimum wage should be the basic as because it is the component of basic+da, for soft copy go to the epfo website. sumit kumar saxena, 9899669071
From India, Ghaziabad
From India, Ghaziabad
Dear Mr. Bhaskar,
Greetings of the day !
You have really explained in a very nice way. But i am little bit confused. As far as i am aware, that if an employee crosses the limit of Rs. 6500/-, he is entitled for P.F. deductions on the limit of Rs. 6500/- i.e. 780/- If the employer deduct the P.F. on increased amount than employer will have to share the equivalent amount towards P.F. In this case, the employers in maximum cases, contributes minimum contribution i.e. 780/- . However, an employee can enhance his contribution voluntary.
Kindly update me.
Profound Regards,
ajay bajaj
From India, Chandigarh
Greetings of the day !
You have really explained in a very nice way. But i am little bit confused. As far as i am aware, that if an employee crosses the limit of Rs. 6500/-, he is entitled for P.F. deductions on the limit of Rs. 6500/- i.e. 780/- If the employer deduct the P.F. on increased amount than employer will have to share the equivalent amount towards P.F. In this case, the employers in maximum cases, contributes minimum contribution i.e. 780/- . However, an employee can enhance his contribution voluntary.
Kindly update me.
Profound Regards,
ajay bajaj
From India, Chandigarh
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PF Advance rule.doc
SALARY with out PF Deduction.xls