Dear all, Under PF Act, what were the items not covered basic wages & Da in PF wages register. Thanks& Regards Balamurugan.
From India, Madras
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From India, Madras
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Hi Mbala,
Your question is not clear. From what I understand, employees drawing a basic salary up to Rs 6500/- are required to contribute to the Provident Fund, while employees earning above Rs 6501/- have the option to become a member of the Provident Fund. The PF amount is deducted based on the basic salary and not on the DA.
Amiya Jena
From India, Jharsuguda
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Your question is not clear. From what I understand, employees drawing a basic salary up to Rs 6500/- are required to contribute to the Provident Fund, while employees earning above Rs 6501/- have the option to become a member of the Provident Fund. The PF amount is deducted based on the basic salary and not on the DA.
Amiya Jena
From India, Jharsuguda
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Dear Jena,
My question is, suppose an employee is drawing a salary i.e. Basic = 5000, other allowance = Rs. 5000, so the total salary is Rs. 10000. Here basic Rs. 5000/- includes basic pay & DA where PF contribution is Rs. 600. But here other allowances = Rs. 5000/- are exempt from PF contribution or not? If it is exempt from PF contribution, then what items are exempt from the payment of PF?
Thanks for your reply.
Balamurugan
From India, Madras
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My question is, suppose an employee is drawing a salary i.e. Basic = 5000, other allowance = Rs. 5000, so the total salary is Rs. 10000. Here basic Rs. 5000/- includes basic pay & DA where PF contribution is Rs. 600. But here other allowances = Rs. 5000/- are exempt from PF contribution or not? If it is exempt from PF contribution, then what items are exempt from the payment of PF?
Thanks for your reply.
Balamurugan
From India, Madras
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Dear Jena,
My question is, suppose an employee is drawing a salary i.e. Basic = 5000, other allowance = Rs. 5000, so the total salary is Rs. 10,000. Here, basic Rs. 5000/- includes basic pay & DA where PF contribution is Rs. 600. But, are other allowances = Rs. 5000/- exempt from PF contribution or not? If they are exempt from PF contribution, then what items are exempt from the payment of PF?
Thanks for your reply.
Balamurugan
From India, Madras
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My question is, suppose an employee is drawing a salary i.e. Basic = 5000, other allowance = Rs. 5000, so the total salary is Rs. 10,000. Here, basic Rs. 5000/- includes basic pay & DA where PF contribution is Rs. 600. But, are other allowances = Rs. 5000/- exempt from PF contribution or not? If they are exempt from PF contribution, then what items are exempt from the payment of PF?
Thanks for your reply.
Balamurugan
From India, Madras
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Mr. Bala ! You other allowances i.e. Rs 5000/- is exempted because PF is not calculated on Allowances. Amiya
From India, Jharsuguda
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From India, Jharsuguda
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A company called 'X' has coverage for all their employees under ESI Act & EPF Act as applicable.
A new employee is coming from company 'Y' who is joining for a basic salary of >6500. Should he be covered under the EPF scheme, or can he be exempted from EPF? Are there any legal obligations on the part of the employer of company 'X' to deduct EPF, even though the new employee's salary is >6500?
If the new employee can be exempted from EPF, is there any legal formality to inform the EPF office? What is the format, etc.?
Please clarify.
Ramamoorthy.S
From India, Madras
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A new employee is coming from company 'Y' who is joining for a basic salary of >6500. Should he be covered under the EPF scheme, or can he be exempted from EPF? Are there any legal obligations on the part of the employer of company 'X' to deduct EPF, even though the new employee's salary is >6500?
If the new employee can be exempted from EPF, is there any legal formality to inform the EPF office? What is the format, etc.?
Please clarify.
Ramamoorthy.S
From India, Madras
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Hi Rama,
As you have mentioned that the employee's basic salary is more than Rs. 6500/- and upon joining a new company, they deduct P.F. for all employees, in that case, certainly, the new company will deduct the P.F.
There is Form No. 11, which is to be filled out along with Form No. 2 (Nomination & Declaration form). In Form No. 11, we gather information about whether the new employee was a member of the P.F. in the last company. If the employee was a member of the P.F. in the last company, then it is the obligation of the new company to deduct the P.F. up to Rs. 6500/- (Basic + DA + Retaining Allowance, if any).
Rajiv Singh
From India
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3As you have mentioned that the employee's basic salary is more than Rs. 6500/- and upon joining a new company, they deduct P.F. for all employees, in that case, certainly, the new company will deduct the P.F.
There is Form No. 11, which is to be filled out along with Form No. 2 (Nomination & Declaration form). In Form No. 11, we gather information about whether the new employee was a member of the P.F. in the last company. If the employee was a member of the P.F. in the last company, then it is the obligation of the new company to deduct the P.F. up to Rs. 6500/- (Basic + DA + Retaining Allowance, if any).
Rajiv Singh
From India
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Balamurugan,
P.F. is calculated based on Basic + D.A. If your salary (Basic & D.A.) increases above Rs 6500, you must calculate P.F. at 12% of Rs 6500 only, as per the P.F. act. However, the employer may choose to pay the full amount if desired.
With Regards,
Pradip
From India, Calcutta
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P.F. is calculated based on Basic + D.A. If your salary (Basic & D.A.) increases above Rs 6500, you must calculate P.F. at 12% of Rs 6500 only, as per the P.F. act. However, the employer may choose to pay the full amount if desired.
With Regards,
Pradip
From India, Calcutta
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hi frends... I want to understand the payroll system and what r the contents of payroll... and how it implement in a particular organisations? Pls do needful
From India, Vadodara
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From India, Vadodara
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Hi,
I want to have clarification on this: A person working in my factory, drawing a daily salary of 500-600 (special fabrication work). The same person will not be available for all the days I require. Persons may change. Similarly, I have 4 persons in my factory who work approximately 18-20 days per month. My factory is registered under the PF act where all regular workers are covered under ESI & EPF. Should I have to cover these temporary workers also under the PF act?
My doubt as above is because their monthly salary per person is arrived at 15000/- individually and paid on their days present basis. Since the monthly salary is Rs. 15000/-, which is above 6500/-, is it necessary for me to include them in PF? Or is there any exemption procedure for them alone?
Please clarify.
Ramamoorthy.S
From India, Madras
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I want to have clarification on this: A person working in my factory, drawing a daily salary of 500-600 (special fabrication work). The same person will not be available for all the days I require. Persons may change. Similarly, I have 4 persons in my factory who work approximately 18-20 days per month. My factory is registered under the PF act where all regular workers are covered under ESI & EPF. Should I have to cover these temporary workers also under the PF act?
My doubt as above is because their monthly salary per person is arrived at 15000/- individually and paid on their days present basis. Since the monthly salary is Rs. 15000/-, which is above 6500/-, is it necessary for me to include them in PF? Or is there any exemption procedure for them alone?
Please clarify.
Ramamoorthy.S
From India, Madras
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