Hello All!
it is optional for the employer to deposit the PF over Rs. 6500 basic salary, even if the employee is willing to continue with the PF deduction. I wanted to confirm, is it ok for the employer to stop contributing its share, if he has been sharing since last 1 year, and now he realises that he doesnt want to continue with his share. Please let me know if this can be done, and if this is legal.
Thanks & Regards!
From India, Delhi
it is optional for the employer to deposit the PF over Rs. 6500 basic salary, even if the employee is willing to continue with the PF deduction. I wanted to confirm, is it ok for the employer to stop contributing its share, if he has been sharing since last 1 year, and now he realises that he doesnt want to continue with his share. Please let me know if this can be done, and if this is legal.
Thanks & Regards!
From India, Delhi
Dear Rupalli,
As per the Employee Provident Scheme 1952, the basic contribution of PF is 12% on Basic salary. The contribution must be from Employee and employer.
Employer can't stop PF processing.
Usual practice in industry is, PF contribution of Employee and Employer will stack up in the CTC only.
From India, Bangalore
16As per the Employee Provident Scheme 1952, the basic contribution of PF is 12% on Basic salary. The contribution must be from Employee and employer.
Employer can't stop PF processing.
Usual practice in industry is, PF contribution of Employee and Employer will stack up in the CTC only.
From India, Bangalore
Dear Rupali
EPF is not like ESI
If the person is getting the epf benefit from the last year, and if his salary is increased above the limit also, then also the employer cannot stop contributing to it. in the case of esi, if the salary of the employee exceed limit, then there is no need for the employer to contribute to it after the contribution period.
But in the case of epf, once the deduction is started, the employer has to contribute it till the employee resigns, but the employer has to contribute only upto the ceiling of rs.6500 only even though the salary is more than that
For eg. if the employee is getting a epf salary of rs. 7500.00 then also the employer needs to contribute only rs.780.00 ie 12% of rs.6500.00
hope it is clea with you now
From India, Kochi
EPF is not like ESI
If the person is getting the epf benefit from the last year, and if his salary is increased above the limit also, then also the employer cannot stop contributing to it. in the case of esi, if the salary of the employee exceed limit, then there is no need for the employer to contribute to it after the contribution period.
But in the case of epf, once the deduction is started, the employer has to contribute it till the employee resigns, but the employer has to contribute only upto the ceiling of rs.6500 only even though the salary is more than that
For eg. if the employee is getting a epf salary of rs. 7500.00 then also the employer needs to contribute only rs.780.00 ie 12% of rs.6500.00
hope it is clea with you now
From India, Kochi
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Employer-PF-res trict to wages of Rs 6500.pdf