I have following doubts to clarify. Experts please clarify my doubts.
1. Is it mandatory that the Company has to be in existence for 3 years to register for PF? I want to know is there any fixed time period for company to register for PF after its incorporation?
2. Suppose an employee having the basic pay Rs.5000 at the start and crosses the ceiling limit of Rs.6500 in the coming year, Can the employer decide to cease the PF privilege?
Please clarify these doubts,
Thanks and regards,
Shijit.
From India, Kochi
1221. Is it mandatory that the Company has to be in existence for 3 years to register for PF? I want to know is there any fixed time period for company to register for PF after its incorporation?
2. Suppose an employee having the basic pay Rs.5000 at the start and crosses the ceiling limit of Rs.6500 in the coming year, Can the employer decide to cease the PF privilege?
Please clarify these doubts,
Thanks and regards,
Shijit.
From India, Kochi
I went through this link before posting my query. Can somebody quickly reply to these specific questions?
Shijit.
From India, Kochi
Shijit.
From India, Kochi
dear shijit
there is no fixed time to register under PF after incorporation.the main criteria is whenever no of employees will become twenty than you are required to take PF code and later on if number goes down than 20 , than also contribution is to be paid.
regarding your second query ,once an employee becomes member of PF than he will remain member of PF irrespective of his salary ,however you can restrict contribution on 6500.
tks
j s malik
From India, Delhi
there is no fixed time to register under PF after incorporation.the main criteria is whenever no of employees will become twenty than you are required to take PF code and later on if number goes down than 20 , than also contribution is to be paid.
regarding your second query ,once an employee becomes member of PF than he will remain member of PF irrespective of his salary ,however you can restrict contribution on 6500.
tks
j s malik
From India, Delhi
Thanks Malik for clearing my doubt.
I have one more clarification please...
What about the employee contribution? Can employee contribution be restricted at the ceiling level? Or should the employee continue to contribute 12% even after crossing the limit of Rs.6500?
Regards,
Shijit.
From India, Kochi
I have one more clarification please...
What about the employee contribution? Can employee contribution be restricted at the ceiling level? Or should the employee continue to contribute 12% even after crossing the limit of Rs.6500?
Regards,
Shijit.
From India, Kochi
dear
employee will also contribute on 6500 but he he can put an application
for contribution towards VPF ie voluntory provident fund ,in this case
he can double his contribution.
it means if his basic is 7000 and employer and employee both are contributing on 6500 than employee can contribute 24% of 6500
whereas employer will contribute on 12% of 6500.
tks
j s malik
From India, Delhi
employee will also contribute on 6500 but he he can put an application
for contribution towards VPF ie voluntory provident fund ,in this case
he can double his contribution.
it means if his basic is 7000 and employer and employee both are contributing on 6500 than employee can contribute 24% of 6500
whereas employer will contribute on 12% of 6500.
tks
j s malik
From India, Delhi
Hello Priya,
Sorry to inturpt the conversation in between but its like the employee can increase his contribution towards the PF even if the Employer is depositing 12%. i.e lets take a example that Co A is depsiting 780 Rs as PF, employee can even deposit 1000 Rs towards PF and that extra amount will be deducted from his salary as PF contribution.
So in his salary slip the deduction will be
Employer Contribution 780
Employee Contribution 1000
This is done to save more + you get tax benefit in this case aswell and many people do it after making a application in that regards.
Regards,
Sourabh Deval
From India, Pune
Sorry to inturpt the conversation in between but its like the employee can increase his contribution towards the PF even if the Employer is depositing 12%. i.e lets take a example that Co A is depsiting 780 Rs as PF, employee can even deposit 1000 Rs towards PF and that extra amount will be deducted from his salary as PF contribution.
So in his salary slip the deduction will be
Employer Contribution 780
Employee Contribution 1000
This is done to save more + you get tax benefit in this case aswell and many people do it after making a application in that regards.
Regards,
Sourabh Deval
From India, Pune
Hi Shiji,
Sorry for interrupting. As per my knowledge the employer will pay only on EPS amount (8.33%) if employees basic salary is 6500 or above, the employer will not eligible to pay rest of his contribution. Even employee contributes his share as he wants.
Regards,
Sanjeev
From India, Delhi
Sorry for interrupting. As per my knowledge the employer will pay only on EPS amount (8.33%) if employees basic salary is 6500 or above, the employer will not eligible to pay rest of his contribution. Even employee contributes his share as he wants.
Regards,
Sanjeev
From India, Delhi
dear sanjeev you are correct.employer pay 8.33% of 6500 towards EPS but balance is credited in EPF account of subscriber. tks j s malik
From India, Delhi
From India, Delhi
Hi Folks
1. The point of making PF contribution of Statutory amount of (maximum) of Rs 780 or more is depends on the company policy
Any how whethter it is Rs 780 or more than RS 780 Rs 541 will be contributed for Pension fund (as ceiling limit ) and rest of the amount will be trsed to Employee PF account
2 No employee or employer will be allowed to make a pf contribution of less than 12 % and VPF also can be contributed upto the maximum of Statutory rate,
3 Just like that you cannot invest any much of amount in VPF account
4 As defined by sourabh , that Employer is contributing Rs 780 and employee contributing Rs 1000 is not possible
5. There wont be any policy in any org. that there can be different contribution % of employees and employer
Hope I am right
Regards
R Sudhakar
9962006113
From India, Madras
1. The point of making PF contribution of Statutory amount of (maximum) of Rs 780 or more is depends on the company policy
Any how whethter it is Rs 780 or more than RS 780 Rs 541 will be contributed for Pension fund (as ceiling limit ) and rest of the amount will be trsed to Employee PF account
2 No employee or employer will be allowed to make a pf contribution of less than 12 % and VPF also can be contributed upto the maximum of Statutory rate,
3 Just like that you cannot invest any much of amount in VPF account
4 As defined by sourabh , that Employer is contributing Rs 780 and employee contributing Rs 1000 is not possible
5. There wont be any policy in any org. that there can be different contribution % of employees and employer
Hope I am right
Regards
R Sudhakar
9962006113
From India, Madras
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