In our organisation we are deducting PF from the Basic Salary (inclusive of DA) . If the Salary exceeds Rs.6500 (>=6500) whether we can deduct PF contribution for an amount of Rs.6500/- only or for the actuals (for eg. Rs.7250/- as basic salary). Also on part of employer contribution what to do?Pls help.RgdsPrabhu.R
From India, Madras
From India, Madras
Hi Prabhu Employee has to pay 12% on his actual Basic+DA but employeer can freeze to 6500 itself.
From India, Madras
59From India, Madras
If salary ie basic+DA exceeds 6500 than legally you are not bound to pay employer share on full.it is your choice to deduct on 7200 or on 6500 .dear in that case you can freez it on 6500.
From India, Delhi
From India, Delhi
Dear Prabhu, I agree with MalikJS And Rajsekar, ur management can availed the celling for 6500/- and restrict thereto. Reagards, KIRAN KALE
From India, Kolhapur
From India, Kolhapur
Firstly PF is calculated upon Wages (basic + D.A. & Cash Value of food concession + Retaining allowances).
Rate of Contribution at present is 12% by employer and employees+ 0.5% towards E.D.L.I. contribution and 1.15% towards administrative charges by employer.
Lets take an example;-
wage of A is 6000 then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6000=720
If wage of A is 6500 then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6500=780
If wage of A is 7000 (more than 6500) then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6500=780
Means employers are not liable to pay more than 780 if when wage is revised (more than 6500).
From India
Rate of Contribution at present is 12% by employer and employees+ 0.5% towards E.D.L.I. contribution and 1.15% towards administrative charges by employer.
Lets take an example;-
wage of A is 6000 then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6000=720
If wage of A is 6500 then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6500=780
If wage of A is 7000 (more than 6500) then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6500=780
Means employers are not liable to pay more than 780 if when wage is revised (more than 6500).
From India
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Increase in PF Slab 15K to 25K.pdf