my company is a newly registered and having more than 100 employees, now company covers under PF ACT. some employees have more than 6,500 as Basic Salary and some less than that.
my question is does the employees having more than 6,500 as Basic will be covered in PF as per the PF Act?
From India, Hyderabad
15my question is does the employees having more than 6,500 as Basic will be covered in PF as per the PF Act?
From India, Hyderabad
As per Act employees whose basic salary (+DA) at the time of joining or enforcement of EPF to the establishment is more than Rs 6500 are not to be covered by EPF. However it is not mandatory that these employees can not become members of EPF. Therefore, if the employer is willing to contribute all employees irrespective of salary can be covered by EPF. But remember that once covered, they will continue to be under EPF till their service with the employer.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Yes,company can give PF to its employeesearning salary more then the amount you have mentioned above...But the percentage of PF is 12% of the basic pay& DA....12% is paid by the employer & 12% by the employees itself....total amount is deposited in the account of the employee's PF A/C.
From India, New Delhi
From India, New Delhi
Hi valbooj,
i am giving some details about EPF i hope it will help you to understand it.
Note :PF always calculated on BASIC + DA
Total PF contribution : 25.61%
Employers Contribution :12% (3.67% PF +8.33%Pension) +1.61%Administrative charges (1.10% Adm charges +.50 % EDLIF Charges) =13.61%
Note: Pension value 8.33% is always constant whther PF value can be variable depending on the Basic & DA
Pls study following cases:
Case :1 if Basic + Da = 6500 then contri wil be like ths Pension 8.33% ( 541) and PF value wil be (239)
Case II 1 if Basic + Da > 6500 then then contri wil be like ths Pension 8.33 %( constant value 541) and PF will be : exess amount - 541 as exp IF Basic + DA is 12000/- then it wil be like ths Pension will be 541/- and PF will be 899/-
( cal.: 12000*12% -541 = 899/-)
Case III : if Basic + Da < 6500 then then contri wil be like ths Pension 8.33% and PF 3.67% of basic +DA
Exp : if basic is 5500/- then Pension wil be 5500*8.33% =458 and PF will be 5500*3.67% = 202/-
Employess Contribution:12% goes to PF amount only.
Some other useful info regarding PF:
Form No. Purpose
13 (revised) For transferring the Provident Fund account of a member from one establishment another establishment covered under the act / scheme
19 To be submitted by a member to withdraw his Provident Fund dues on leaving service/retirement/termination.
10-C For claiming - Refund of Employer share.( with form no.19)
10-D To be submitted by the first claimant i.e.- member or - widow/widower or- orphan nominee as the case may be
31 For the use of Provident Fund members to avail advances / withdrawals as provided in the scheme
Rate of Interest:8.5%
With best Regards
Vikram Singh Tawer
From India, Bhopal
i am giving some details about EPF i hope it will help you to understand it.
Note :PF always calculated on BASIC + DA
Total PF contribution : 25.61%
Employers Contribution :12% (3.67% PF +8.33%Pension) +1.61%Administrative charges (1.10% Adm charges +.50 % EDLIF Charges) =13.61%
Note: Pension value 8.33% is always constant whther PF value can be variable depending on the Basic & DA
Pls study following cases:
Case :1 if Basic + Da = 6500 then contri wil be like ths Pension 8.33% ( 541) and PF value wil be (239)
Case II 1 if Basic + Da > 6500 then then contri wil be like ths Pension 8.33 %( constant value 541) and PF will be : exess amount - 541 as exp IF Basic + DA is 12000/- then it wil be like ths Pension will be 541/- and PF will be 899/-
( cal.: 12000*12% -541 = 899/-)
Case III : if Basic + Da < 6500 then then contri wil be like ths Pension 8.33% and PF 3.67% of basic +DA
Exp : if basic is 5500/- then Pension wil be 5500*8.33% =458 and PF will be 5500*3.67% = 202/-
Employess Contribution:12% goes to PF amount only.
Some other useful info regarding PF:
Form No. Purpose
13 (revised) For transferring the Provident Fund account of a member from one establishment another establishment covered under the act / scheme
19 To be submitted by a member to withdraw his Provident Fund dues on leaving service/retirement/termination.
10-C For claiming - Refund of Employer share.( with form no.19)
10-D To be submitted by the first claimant i.e.- member or - widow/widower or- orphan nominee as the case may be
31 For the use of Provident Fund members to avail advances / withdrawals as provided in the scheme
Rate of Interest:8.5%
With best Regards
Vikram Singh Tawer
From India, Bhopal
Hi Vikram Singh, you have given a wonderful information about P.F, thank you very much. Request you to please keep post useful information as and when you know. Regards, Sravan
From India, Hyderabad
From India, Hyderabad
Hi Vikarm,
Here i got one doubt in ur explanation. i.e , in the begining u said that employer contribution will be 13.61% (including Admin Charges). But in your calculation CASE II, only 12% contribution u shown. and according to my knowledge employer need not to pay more PF. (slab of 6500/-is max.)Is it?
In CASE II, employer conribution is showing Rs. 899/-, but according slab of 6500/- n %, it is coming only 884.65.
ex: 6500*13.61% =884.65
Please clarify this also na.
Regards,
Kalyani Thakur.
From India, Hyderabad
Here i got one doubt in ur explanation. i.e , in the begining u said that employer contribution will be 13.61% (including Admin Charges). But in your calculation CASE II, only 12% contribution u shown. and according to my knowledge employer need not to pay more PF. (slab of 6500/-is max.)Is it?
In CASE II, employer conribution is showing Rs. 899/-, but according slab of 6500/- n %, it is coming only 884.65.
ex: 6500*13.61% =884.65
Please clarify this also na.
Regards,
Kalyani Thakur.
From India, Hyderabad
hello all,
herewith i have attached a excel file for pf challan .
For further Query:
1. Pf Administative charegs calculate on total (Basic+da) Salary.
2. in case Basici+Da>Rs6500 pf deduction possible
if emloyer agry to deduct pf amt from employee salary. but maximum limit for pension fund is 541/-which will be on 6500/-. bal amt deposit in pf fund
WITH BEST REGARDS
VIKRAM SINGH TAWER
From India, Bhopal
herewith i have attached a excel file for pf challan .
For further Query:
1. Pf Administative charegs calculate on total (Basic+da) Salary.
2. in case Basici+Da>Rs6500 pf deduction possible
if emloyer agry to deduct pf amt from employee salary. but maximum limit for pension fund is 541/-which will be on 6500/-. bal amt deposit in pf fund
WITH BEST REGARDS
VIKRAM SINGH TAWER
From India, Bhopal
Hi Kalyani,
Adminitrative charges calculate on total of baic & Da . i have submitted a pf challan excel file . pls see that.
for another query about pf ded in case of basic +da more than 6500/-
Deduction possible if employer agree to deduct. but in this case maximum limit for pension fund is 541/-( max limit rs 6500x8.33%=541). & balance amt will be deposit in pf fund
in all three condition i bifergate only 12% of pf because adminitrative charges are calculate consolidately not indivisually.
i hope i have cleared your doubt.
Thanks & Regards
Vikram Singh Tawer
From India, Bhopal
Adminitrative charges calculate on total of baic & Da . i have submitted a pf challan excel file . pls see that.
for another query about pf ded in case of basic +da more than 6500/-
Deduction possible if employer agree to deduct. but in this case maximum limit for pension fund is 541/-( max limit rs 6500x8.33%=541). & balance amt will be deposit in pf fund
in all three condition i bifergate only 12% of pf because adminitrative charges are calculate consolidately not indivisually.
i hope i have cleared your doubt.
Thanks & Regards
Vikram Singh Tawer
From India, Bhopal
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls