Dear All,
In my company, we are deducting PF at 12% of the basic salary. Now, I have a new joiner who wants a maximum of Rs. 780 to be deducted as PF amount from his salary. The person handling PF is not giving him this choice. However, I am aware that there is an option to have a maximum of Rs. 780 deducted as PF amount, as this rule existed in one of my previous companies where I had worked.
Can anyone advise on this?
Regards,
Shalini
From India, Pune
34In my company, we are deducting PF at 12% of the basic salary. Now, I have a new joiner who wants a maximum of Rs. 780 to be deducted as PF amount from his salary. The person handling PF is not giving him this choice. However, I am aware that there is an option to have a maximum of Rs. 780 deducted as PF amount, as this rule existed in one of my previous companies where I had worked.
Can anyone advise on this?
Regards,
Shalini
From India, Pune
Dear Shalini,
In PF, there will be no choice to deduct a particular amount; it is compulsory to deduct 12% from his basic. Otherwise, there is a clause: if his basic is crossing more than 6500/-, then we can deduct the 12% up to 6500/- basic.
Regards,
Srikanth
From India, Eluru
In PF, there will be no choice to deduct a particular amount; it is compulsory to deduct 12% from his basic. Otherwise, there is a clause: if his basic is crossing more than 6500/-, then we can deduct the 12% up to 6500/- basic.
Regards,
Srikanth
From India, Eluru
Hi shalini The new employee who is asking for the deducation is Rs. 780 is of 12% of Rs. 6500which is as per the EPF act 1952. Regards Param
From India, Delhi
From India, Delhi
Dear Shalini,
As per the PF Act of 1952, it's mandatory to deduct an amount as PF, which is 12% of his salary {Basic+DA >= up to 6,500 pm}. This means the employees whose salary at entry-level is <= 6,500 pm, only those are eligible for PF. In this case, 12% of 6,500 comes to 780. Conclusion: the maximum amount of PF that can be deducted from employees' salary is 780. However, there is an exception to the rule for employees who are drawing a salary {Basic+DA} more than 6,500 pm.
Regards,
Vishal
Labor law student
From India, Mumbai
As per the PF Act of 1952, it's mandatory to deduct an amount as PF, which is 12% of his salary {Basic+DA >= up to 6,500 pm}. This means the employees whose salary at entry-level is <= 6,500 pm, only those are eligible for PF. In this case, 12% of 6,500 comes to 780. Conclusion: the maximum amount of PF that can be deducted from employees' salary is 780. However, there is an exception to the rule for employees who are drawing a salary {Basic+DA} more than 6,500 pm.
Regards,
Vishal
Labor law student
From India, Mumbai
Hi all,
Please let us clarify the following point: if an employee is joining and is getting a salary of more than 6500/-, is there any exemption to not deduct PF contribution from their account?
Waiting for your reply and further procedure, like if any Form 11 needs to be submitted.
From India, Mumbai
Please let us clarify the following point: if an employee is joining and is getting a salary of more than 6500/-, is there any exemption to not deduct PF contribution from their account?
Waiting for your reply and further procedure, like if any Form 11 needs to be submitted.
From India, Mumbai
Hello Mr Janardan, Yes a new employees will have the choice,not to deduct the Pf from his salary if his basic is more than 6500/- .
From India, Bhopal
From India, Bhopal
In case the employee’s salary is Above 6,500/- as basic.Then is it compulsory or not to deduct PF from his/her salary.
From India, Mumbai
From India, Mumbai
Okay new employee will have the choice. Got it.What about employer’s, If employee is willing to deduct PF even if his/her salary is above ,500/- than what.
From India, Mumbai
From India, Mumbai
[QUOTE=MANOKAVIN;1145692]
Hi Shalini,
If his salary is 6500, you can deduct PF amount as 780. Otherwise, you can calculate 12% PF from his basic + DA.
Dear Shalini,
Thanks. In case the employee is willing to contribute PF even if his/her salary is above Rs. 6,500/-, then what?
From India, Mumbai
Hi Shalini,
If his salary is 6500, you can deduct PF amount as 780. Otherwise, you can calculate 12% PF from his basic + DA.
Dear Shalini,
Thanks. In case the employee is willing to contribute PF even if his/her salary is above Rs. 6,500/-, then what?
From India, Mumbai
Thanks for your valuable comments. Now, my another query is if we are not deducting his PF amount, shall Employers be eligible to pay 13.61% of contribution, including the pension contribution of 8.33%. Also, let us know what will be the procedure to enable the exemption.
From India, Mumbai
From India, Mumbai
dear concern sir i want to know that how govenment fix minimum wages and what are the basis?
From India, Calcutta
From India, Calcutta
Hi,
This restriction can be from the employer's side, not from the employee's side.
An employee's deduction has to be a minimum of 12% of the basic salary, i.e., if the basic is 7000, then it has to be 12% of 7000 (it cannot be 12% of 6500). However, an employer has the option to restrict his contribution to 12% of 6500 (i.e., may not contribute 12% of 7000).
Regards,
Jeene
From India, Bangalore
This restriction can be from the employer's side, not from the employee's side.
An employee's deduction has to be a minimum of 12% of the basic salary, i.e., if the basic is 7000, then it has to be 12% of 7000 (it cannot be 12% of 6500). However, an employer has the option to restrict his contribution to 12% of 6500 (i.e., may not contribute 12% of 7000).
Regards,
Jeene
From India, Bangalore
Hello to all,
There is one more rule called voluntary PF contribution. For this, any employee whose salary is equal to or more than $6500 can contribute a maximum of 20% of his/her basic as PF.
In Form No. 3A, there is an option for voluntary PF contribution where you have to input the amount.
As far as the employer's part is concerned, the employer has to pay 12% only if the basic is less than or equal to $6500. For basics higher than this limit, the company has exceptions.
Thanks,
Sanju Singh
From India, Gurgaon
There is one more rule called voluntary PF contribution. For this, any employee whose salary is equal to or more than $6500 can contribute a maximum of 20% of his/her basic as PF.
In Form No. 3A, there is an option for voluntary PF contribution where you have to input the amount.
As far as the employer's part is concerned, the employer has to pay 12% only if the basic is less than or equal to $6500. For basics higher than this limit, the company has exceptions.
Thanks,
Sanju Singh
From India, Gurgaon
Dear All,
I've gone through all the discussions, and I would like to present my conclusion. If anyone is receiving a salary (Basic+DA) exceeding 6500, and both the employee and employer agree to deductions from the total salary (Basic+DA), then deductions can be made. However, it is mandatory for the employer to deposit Rs. 541/- into the pension fund (A/c 10), and the remainder should be deposited into the EPF (A/c 1). Additionally, the wages for account no. 10 should only include Rs. 6500 for that employee. I hope that my opinion clarifies everything.
Please let me know if you need any further information. Thank you.
Best regards,
[Your Name]
From India, New Delhi
I've gone through all the discussions, and I would like to present my conclusion. If anyone is receiving a salary (Basic+DA) exceeding 6500, and both the employee and employer agree to deductions from the total salary (Basic+DA), then deductions can be made. However, it is mandatory for the employer to deposit Rs. 541/- into the pension fund (A/c 10), and the remainder should be deposited into the EPF (A/c 1). Additionally, the wages for account no. 10 should only include Rs. 6500 for that employee. I hope that my opinion clarifies everything.
Please let me know if you need any further information. Thank you.
Best regards,
[Your Name]
From India, New Delhi
Hi all,
My total salary is 16000, and the basic salary is 11200. I had taken a leave in the month, so my total basic salary is 10839. For this, my PF will deduct Rs. 6500 @ 12% = Rs. 780.00. My employer deducted this leave from Rs. 6500 and made my PF Rs. 755.00.
Is it right? Please confirm.
Regards,
Vikas Gupta
9311334683
From India, Lucknow
My total salary is 16000, and the basic salary is 11200. I had taken a leave in the month, so my total basic salary is 10839. For this, my PF will deduct Rs. 6500 @ 12% = Rs. 780.00. My employer deducted this leave from Rs. 6500 and made my PF Rs. 755.00.
Is it right? Please confirm.
Regards,
Vikas Gupta
9311334683
From India, Lucknow
Hi! I am working as a HR in Construction Company. I am having one quiry. Do we have to Deduct PF from Labour’s Payment.If yes then what about the rules for PF deduction? Kindly reply urgently.
From India, Nagpur
From India, Nagpur
Deduction of Provident fund from salary higher then 6500, is solely company’s decision.If company agrees to deduct, it is possible to deduct pf.
From India, Mumbai
From India, Mumbai
Hi Shalini,
The employee's demand is legally right. According to Paragraph 30 of the EPF Scheme, 1950, and other provisions, an employee drawing wages (Basic+DA) exceeding Rs. 6,500 is liable to PF contribution only to the extent of Rs. 6,500, i.e., Rs. 780.
Janardhan,
Regarding your query, for employees drawing basic wages exceeding Rs. 6,500, they can be regarded as excluded employees and are not liable for PF deduction if they were not members of the fund previously. For statutory compliance, the employer is advised to take a declaration from the concerned employee to that effect. For employees who have PF membership, PF contribution is mandatory to the extent of Rs. 6,500 even if the salary earned is over and above that figure.
From India, Pune
The employee's demand is legally right. According to Paragraph 30 of the EPF Scheme, 1950, and other provisions, an employee drawing wages (Basic+DA) exceeding Rs. 6,500 is liable to PF contribution only to the extent of Rs. 6,500, i.e., Rs. 780.
Janardhan,
Regarding your query, for employees drawing basic wages exceeding Rs. 6,500, they can be regarded as excluded employees and are not liable for PF deduction if they were not members of the fund previously. For statutory compliance, the employer is advised to take a declaration from the concerned employee to that effect. For employees who have PF membership, PF contribution is mandatory to the extent of Rs. 6,500 even if the salary earned is over and above that figure.
From India, Pune
Dear Seniors, if employee’s basic salary is 6000 then we can deduct the PF or not? plz help me out.
From India, Indore
From India, Indore
Is providing PF is mandatory for a company or its optional. Some companies are giving PF only for one year from the date of joining after that not giving.
From India, Bangalore
From India, Bangalore
Dear Shalini,
Currently, the PF limit is ₹15,000 for the basic, and you can calculate 12% of it. However, my basic is ₹17,000.
So, please provide me with the deduction amount for the basic of ₹15,000 or ₹17,000.
Jay Patel
Assistant HR / ADM
Mobile: 08866266743
Email: jay9066@gmail.com
From India, Ahmedabad
Currently, the PF limit is ₹15,000 for the basic, and you can calculate 12% of it. However, my basic is ₹17,000.
So, please provide me with the deduction amount for the basic of ₹15,000 or ₹17,000.
Jay Patel
Assistant HR / ADM
Mobile: 08866266743
Email: jay9066@gmail.com
From India, Ahmedabad
Hi Manoj,
I work as a teacher on a daily wage basis. My monthly salary is 10,000. I need to calculate my salary for 16 days after deducting the 12% PF. I received 4,379 for 16 days in July. Can you please assist me?
Thank you.
From India, Mumbai
I work as a teacher on a daily wage basis. My monthly salary is 10,000. I need to calculate my salary for 16 days after deducting the 12% PF. I received 4,379 for 16 days in July. Can you please assist me?
Thank you.
From India, Mumbai
Gross Salary/ month 10000 Working Days 31 per day salary 323 No Of working Days 16 Earning Salary 5161 Pf Deduction 619 ESIC Deductions 90 Net Salary Should Be 4452
From India, undefined
From India, undefined
salary/Working days*Present days=gross salary, but gross salary and basic are different. may be the same formula used for calculation od your PF applicable basic+da.
From India
From India
Jay, please note that your actual basic salary is INR 17,000, and it is not mandatory for PF deduction if it exceeds INR 15,000. However, if both you and your employer agree, you can opt to deduct either INR 17,000 or INR 15,000. Salaries of INR 15,000 or more are not applicable for pension as per the September 2014 amendment. For any further clarification, please contact A. Sirajudeen at 9940073799.
HR Statutory Consultant
Chennai
From India, Madras
HR Statutory Consultant
Chennai
From India, Madras
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SALARY with out PF Deduction.xls
Employees' PF Appellate Tribunal Procedure Rules 1997.pdf