can any body help me for why some organisation fix there pf 780?
From India, Pune
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From India, Pune
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Dear Pragati,
If the salary is fixed at Rs. 6500 per month, then 12% (Rs. 780) of the basic will be deducted as Employee PF. Additionally, 8.33% of the employer's share will be remitted to the Pension Scheme. At the time of superannuation, the Government will also contribute a maximum of Rs. 541, which is equivalent to 8.33% of EPS. The remaining balance amount of 3.67% will be added to the PF contribution as the employer's share, or the amount left after remitting Rs. 541 (8.33%) will be added.
Thank you.
From India, Kumbakonam
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1189If the salary is fixed at Rs. 6500 per month, then 12% (Rs. 780) of the basic will be deducted as Employee PF. Additionally, 8.33% of the employer's share will be remitted to the Pension Scheme. At the time of superannuation, the Government will also contribute a maximum of Rs. 541, which is equivalent to 8.33% of EPS. The remaining balance amount of 3.67% will be added to the PF contribution as the employer's share, or the amount left after remitting Rs. 541 (8.33%) will be added.
Thank you.
From India, Kumbakonam
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The ceiling salary for EPF is Rs. 6500, i.e. the statutory obligation is to contribute up to this limit, and 12% of the above salary is Rs. 780. However, if the employer and employee wish, the contribution can be based on the actual salary in excess of Rs. 6500.
Abbas.P.S
From India, Bangalore
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Abbas.P.S
From India, Bangalore
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It cannot be fixed like that, Neha. Your basic pay, whatever they might have fixed, will result in the PF being Rs. 288/-, that's it. In other words, Rs. 2400/- per month is fixed as the Basic Salary for all of you in your company.
I hope in your organization, increments and other benefits will be shown as some allowance.
From India, Kumbakonam
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I hope in your organization, increments and other benefits will be shown as some allowance.
From India, Kumbakonam
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We refer the News of ESIC amendment in slab which was raised to a maximum slab of Rs. 15000 instead of earlier Rs. 10000 from 01.05.2010.
In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab
As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.
I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.
Government should think about middle class family. “Poor are becoming poor day by day”
Expecting some amendments in PF slab in the new Fiscal Year
From India, Vadodara
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In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab
As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.
I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.
Government should think about middle class family. “Poor are becoming poor day by day”
Expecting some amendments in PF slab in the new Fiscal Year
From India, Vadodara
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Hi, my organization started in 1988, but we have not registered with PF because the staff member count is less than 15. However, since September 2010, the staff count has increased to above 20. Please advise on how I can apply for PF registration and what the procedure entails.
From India, Mumbai
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From India, Mumbai
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Dear Friend,
Find out from the telephone directory or the EPFO website the local address of the EPFO office that serves the area where your administrative office is located. If it is in the same city, visit the office in person and meet with the enforcement officer. Fill out the prescribed forms for employer registration, distribute the necessary forms to be completed by the employees, have them filled out, and submit them to the EPFO office.
Once you receive the PF account number from the EPFO office, start depositing the employee subscriptions and employer contributions. The remittance should be made directly by the employer at the local branch of the State Bank of India, quoting the employer code number, etc.
Ensure to follow these steps for a smooth PF registration process.
From India, Pune
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Find out from the telephone directory or the EPFO website the local address of the EPFO office that serves the area where your administrative office is located. If it is in the same city, visit the office in person and meet with the enforcement officer. Fill out the prescribed forms for employer registration, distribute the necessary forms to be completed by the employees, have them filled out, and submit them to the EPFO office.
Once you receive the PF account number from the EPFO office, start depositing the employee subscriptions and employer contributions. The remittance should be made directly by the employer at the local branch of the State Bank of India, quoting the employer code number, etc.
Ensure to follow these steps for a smooth PF registration process.
From India, Pune
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As per the latest amendment under the EPF Act, Rs. 6,500/- is the minimum basic salary from which PF contributions are to be made by both the employer and the employee.
If a person's basic salary is Rs. 10,000/-, then the company should contribute to the PF for the minimum basic salary of Rs. 6,500/-, and this contribution is mandatory. It is optional for the company to contribute to the total basic salary, i.e., Rs. 6,500/-
Therefore, 12% of Rs. 6,500/- is Rs. 780, which is deducted from the employee's salary, and the employer will also contribute the same amount.
Regards,
G.B. Mahendra Kumar
Fortune Hub - One-Stop Solution for Total HR Domain.
From India, Bangalore
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If a person's basic salary is Rs. 10,000/-, then the company should contribute to the PF for the minimum basic salary of Rs. 6,500/-, and this contribution is mandatory. It is optional for the company to contribute to the total basic salary, i.e., Rs. 6,500/-
Therefore, 12% of Rs. 6,500/- is Rs. 780, which is deducted from the employee's salary, and the employer will also contribute the same amount.
Regards,
G.B. Mahendra Kumar
Fortune Hub - One-Stop Solution for Total HR Domain.
From India, Bangalore
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As per the latest amendment under the EPF Act, Rs. 6,500/- is the minimum basic salary from which PF contributions are required from both the employer's and employee's sides. If a person's basic salary is Rs. 10,000/-, then the company should contribute to PF based on the minimum basic salary of Rs. 6,500/-, which is mandatory. It is optional for the company to contribute based on the total basic salary, i.e., Rs. 6,500/-
Therefore, 12% of Rs. 6,500/- amounts to Rs. 780, which is deducted from the employee's salary, and the employer will also contribute the same amount.
Regards,
G.B. Mahendra Kumar
Fortune Hub - One Stop Solution for Total HR Domain
From India, Bangalore
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Therefore, 12% of Rs. 6,500/- amounts to Rs. 780, which is deducted from the employee's salary, and the employer will also contribute the same amount.
Regards,
G.B. Mahendra Kumar
Fortune Hub - One Stop Solution for Total HR Domain
From India, Bangalore
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As far as EPF is concerned, the components considered for deduction are basic salary + DA + food allowance (if any) or any undefined allowance e.g., special allowance or others. Secondly, it is compulsory for those who are earning a basic salary up to Rs. 6500/- per month. Once you become an EPF member, the contribution can continue when it exceeds the ceiling. It depends on the employer whether they deduct the contribution based on the actual basic salary or Rs. 6500/-. The Rs. 6500/- is the ceiling for EPS (8.33%), EDLI (0.5%), and administrative charges (0.01%).
Thanks & regards,
Sumit Kumar Saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
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Thanks & regards,
Sumit Kumar Saxena,
+91-9899669071, 0120-4131277
From India, Ghaziabad
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Hi Neha,
First of all, I would like to substantiate here that the PF is a Social Security Benefit, which is one of the primary responsibilities of any employer as well as the state (country - we use state in the US). Any state has a legal responsibility to ensure a secure life extension plan for the statesmen. In order to achieve this, PF is a very relevant statutory requirement. As you know, there are always loopholes in any system to counter the same in adverse conditions. Many employers take advantage just to save on their own contribution, thus, 780/-.
It should be mandatory to deduct 12% of basic & employer's contribution to the same part to be deposited to the PF account. Then there is a proper system. As an ideal employer, all should follow this.
Regards,
Niky
From India, Indore
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First of all, I would like to substantiate here that the PF is a Social Security Benefit, which is one of the primary responsibilities of any employer as well as the state (country - we use state in the US). Any state has a legal responsibility to ensure a secure life extension plan for the statesmen. In order to achieve this, PF is a very relevant statutory requirement. As you know, there are always loopholes in any system to counter the same in adverse conditions. Many employers take advantage just to save on their own contribution, thus, 780/-.
It should be mandatory to deduct 12% of basic & employer's contribution to the same part to be deposited to the PF account. Then there is a proper system. As an ideal employer, all should follow this.
Regards,
Niky
From India, Indore
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Dear,
As per the rules of the P.F. Act, the maximum limit for deduction is 6500. Hence, most employers deduct the P.F. up to 6500 even if they pay more than 6500 per month. However, it can be deducted more than 6500 with the consent of the employees, employer, as well as the P.F. department.
Kuldeep Sharma
Advocate
From India, New Delhi
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As per the rules of the P.F. Act, the maximum limit for deduction is 6500. Hence, most employers deduct the P.F. up to 6500 even if they pay more than 6500 per month. However, it can be deducted more than 6500 with the consent of the employees, employer, as well as the P.F. department.
Kuldeep Sharma
Advocate
From India, New Delhi
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Hi Neha,
By reading the chain of replies on your query, I don't think you understand the reason behind fixing EPF contribution up to Rs. 780.00. First of all, the higher limit of Rs. 780.00 is for only those employees who are earning a basic salary more than Rs. 6500.00, and those who are earning a basic salary less than Rs. 6500.00 are contributing on an actual basis.
The reason is, as per EPF Rules, the upper limit for EPF contribution is Rs. 6500.00. According to EPF Rules, the employers and employees are mandatorily liable to pay EPF contribution on the basic salary up to Rs. 6500.00; anything above that is voluntary, they may contribute or they may not.
Taking advantage of these rules, employers are fixing EPF contribution at only Rs. 780.00 for those employees whose basic salary exceeds Rs. 6500.00. With this, employers save costs for the company on employers' contributions, and employees are getting increased take-home salary because they contribute less to the EPF.
Ilyas Hungund
09820472697
From India, Mumbai
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By reading the chain of replies on your query, I don't think you understand the reason behind fixing EPF contribution up to Rs. 780.00. First of all, the higher limit of Rs. 780.00 is for only those employees who are earning a basic salary more than Rs. 6500.00, and those who are earning a basic salary less than Rs. 6500.00 are contributing on an actual basis.
The reason is, as per EPF Rules, the upper limit for EPF contribution is Rs. 6500.00. According to EPF Rules, the employers and employees are mandatorily liable to pay EPF contribution on the basic salary up to Rs. 6500.00; anything above that is voluntary, they may contribute or they may not.
Taking advantage of these rules, employers are fixing EPF contribution at only Rs. 780.00 for those employees whose basic salary exceeds Rs. 6500.00. With this, employers save costs for the company on employers' contributions, and employees are getting increased take-home salary because they contribute less to the EPF.
Ilyas Hungund
09820472697
From India, Mumbai
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Hello,
I am working with a BPO, currently receiving a salary of 15k per month. They are deducting only 120rs for PF and showing the basic salary as only 1000rs. Can anybody tell me if this is correct? Let me show you all those details:
BASIC - 1000/-
ESIC - 193
PT - 200
HRA - 14000
PF - 120
TOTAL EARNING - 14000
TOTAL DEDUCTION - 513
Is this right? Please reply.
From India, Pune
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I am working with a BPO, currently receiving a salary of 15k per month. They are deducting only 120rs for PF and showing the basic salary as only 1000rs. Can anybody tell me if this is correct? Let me show you all those details:
BASIC - 1000/-
ESIC - 193
PT - 200
HRA - 14000
PF - 120
TOTAL EARNING - 14000
TOTAL DEDUCTION - 513
Is this right? Please reply.
From India, Pune
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Hi Abhijit K,
Yes, the above-mentioned PF deduction is absolutely correct. The deduction of PF is based on the basic salary, not on the CTC. Your PF is deducted as 12% of the basic, i.e. 1000 * 12% = 120.
From India, Pune
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Yes, the above-mentioned PF deduction is absolutely correct. The deduction of PF is based on the basic salary, not on the CTC. Your PF is deducted as 12% of the basic, i.e. 1000 * 12% = 120.
From India, Pune
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Hello, dear friend. Thank you for replying. I just want to know, I mean it's looking different. My salary is 14-15k, and the basic is only 1000rs, with HRA 13-14k. Why is this so? I don't have any problem, but when I go to any bank to ask for a loan, they ask me about my salary and then basic salary. Due to the low basic salary, I am getting a smaller loan. What is the legal percentage of the basic salary?
From India, Pune
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From India, Pune
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Just to evade the tax for the government and avoid or pay less the statutory requirements, some companies are behaving in such a manner. The company people have to understand that their company's name is being damaged by these actions.
The percentage of the basic salary can range from 35% to 100%, depending on the position, the salary-fixing method adopted by the company, cadre, and the availability of manpower categories in the required designation.
From India, Kumbakonam
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The percentage of the basic salary can range from 35% to 100%, depending on the position, the salary-fixing method adopted by the company, cadre, and the availability of manpower categories in the required designation.
From India, Kumbakonam
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can u decrib me the PF amount will be Deidcting in a not gross salary PF Deducation in dedcut in Basic salary I m Right na
From India, Delhi
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From India, Delhi
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Rupesh,
Your point is very right, but until the government takes action for that, employees wishing to secure their future can contribute to the Voluntary Provident Fund as per their capacity. This would help them greatly in accumulating a good amount after their retirement, depending on the contribution made to the VPF.
Prasanth
From India, Mumbai
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Your point is very right, but until the government takes action for that, employees wishing to secure their future can contribute to the Voluntary Provident Fund as per their capacity. This would help them greatly in accumulating a good amount after their retirement, depending on the contribution made to the VPF.
Prasanth
From India, Mumbai
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Hello Bhaskar!
Can you please suggest to me if an employee's basic salary is more than Rs. 6500, what will be the contribution of PF for employees? Would employees be covered under the PF scheme?
With regard,
Rajnish Kumar
From India, New Delhi
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Can you please suggest to me if an employee's basic salary is more than Rs. 6500, what will be the contribution of PF for employees? Would employees be covered under the PF scheme?
With regard,
Rajnish Kumar
From India, New Delhi
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Dear Pragati Bonus is to be paid even during the training period. So we must pay for the probation period also we must pay the Bonus.
From India, Kumbakonam
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From India, Kumbakonam
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I want to know, in case any candidate has been working and is now unemployed for two months, if he applies for a new job, on what basis should the company pay him? I just want to clarify whether we should offer him based on his last organization's salary or treat him as a fresher.
From India, Pune
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From India, Pune
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Hello Kumar Rajnish,
Can you please suggest to me if an employee's basic salary is more than Rs. 6500, what will be the contribution of PF for employees? Would employees be covered under the PF scheme?
If the employee is not registered with PF, i.e., if he is a new hire, there is no statutory obligation. But if he is already registered, he has to continue with a statutory obligation up to a salary of Rs. 6500. If the employee and employer wish, there is no restriction to register with PF or contribute for higher salaries even if the salary exceeds Rs. 6500.
With regards,
Abbas P.S
From India, Bangalore
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Can you please suggest to me if an employee's basic salary is more than Rs. 6500, what will be the contribution of PF for employees? Would employees be covered under the PF scheme?
If the employee is not registered with PF, i.e., if he is a new hire, there is no statutory obligation. But if he is already registered, he has to continue with a statutory obligation up to a salary of Rs. 6500. If the employee and employer wish, there is no restriction to register with PF or contribute for higher salaries even if the salary exceeds Rs. 6500.
With regards,
Abbas P.S
From India, Bangalore
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No contribution on salary exceeding statutory limit under EPS 8.11.2013.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx