my friends company has started giving them pf recently but the company is calculating on basic 20000 12 %. this means employee is giving 12% how much the employer would give him 12 % same on 20000 or 6500. is there any clause in which company can pay on 6500 but at the same time if employee is paying on basic 20000.
what would be the minimum a company has to pay pf on basic 20000. if the company is giving less 2400 12& of basic. is tghis justified under any clause can company give less?
what would be the pf givenn on 20000 under various clauses.
From India, Delhi
what would be the minimum a company has to pay pf on basic 20000. if the company is giving less 2400 12& of basic. is tghis justified under any clause can company give less?
what would be the pf givenn on 20000 under various clauses.
From India, Delhi
It iis always better to keep the percentage of PF equal to employer and employee. The different rates of PF contributions are possible in case of voluntary PF contribution. In this case company can contribute PF only on Rs. 6500/- and employee's contribution will be on actual basic. However, while filing the annual returns, it creates lot of arithmatic problems. It is better to contribute 12% on Rs. 20000/-.
From India, Mumbai
19From India, Mumbai
Dear Friend
As per the PF Act we have to pay for the ceiling amount of Rs.6500.00 only and we have to deduct PF only for Rs.6500.00. If the management decid to give more contribution to PF it is up to the company policy. But as per Act we have to pay for Rs.6500.00.
If the employee wants to pay more contribution to the PF, he can do it, but he has to get permission from his employer and the same to be submited to the PF authorities for information. otherwise on inspection period they will create un necessary problems. It is not necessary for the management to give same % of contribution as like the employee. It is purly willing ness of the employer and employee. But as per act the ceiling is Rs.6500.00
Regards
Alphonse
9443625359
From India, Madras
As per the PF Act we have to pay for the ceiling amount of Rs.6500.00 only and we have to deduct PF only for Rs.6500.00. If the management decid to give more contribution to PF it is up to the company policy. But as per Act we have to pay for Rs.6500.00.
If the employee wants to pay more contribution to the PF, he can do it, but he has to get permission from his employer and the same to be submited to the PF authorities for information. otherwise on inspection period they will create un necessary problems. It is not necessary for the management to give same % of contribution as like the employee. It is purly willing ness of the employer and employee. But as per act the ceiling is Rs.6500.00
Regards
Alphonse
9443625359
From India, Madras
Kindly referrred The payment of Bonus Act 1965 Sec. 31A , which has no limits of basic pay but having the limit of Bonus upto 20% of Total pay.
From India, New Delhi
From India, New Delhi
Dear All,
The PF ceiling limit is Rs. 6500/- For calculation purpose, you need to calculate Pension (8.33%) on Rs. 6500/- i.e 541/- and remain will go to PF fund
(3.67% or difference) from employer's contribution only.
If basic is 10000/- then
Employee deduction - 1200/- (12% of Basic)
Employer - 541/- (EPS - 8.33% of 6500/-) & remain ie. Rs. 1200-541 i.e. Rs. 659/- to PF fund.
Regards,
Dinesh
From India, Wardha
The PF ceiling limit is Rs. 6500/- For calculation purpose, you need to calculate Pension (8.33%) on Rs. 6500/- i.e 541/- and remain will go to PF fund
(3.67% or difference) from employer's contribution only.
If basic is 10000/- then
Employee deduction - 1200/- (12% of Basic)
Employer - 541/- (EPS - 8.33% of 6500/-) & remain ie. Rs. 1200-541 i.e. Rs. 659/- to PF fund.
Regards,
Dinesh
From India, Wardha
Dear All,
I read the different views. The fact is that the employee can contribute on the basic he is earning (in this case it is 20000) whereas the employer can restrict his contribution for the salary upto 6500 (which works out to 780/- out of which 541/- will be Family Pension and 239/- will be Employer's Provident Fund. Employer can contribute on the full amount if he so desires but it is not compulsory. It is not correct that the employee has to obtain permission from the employer to contribute for more than 6500/- salary.
Regards,
Vilas
From India, Nasik
I read the different views. The fact is that the employee can contribute on the basic he is earning (in this case it is 20000) whereas the employer can restrict his contribution for the salary upto 6500 (which works out to 780/- out of which 541/- will be Family Pension and 239/- will be Employer's Provident Fund. Employer can contribute on the full amount if he so desires but it is not compulsory. It is not correct that the employee has to obtain permission from the employer to contribute for more than 6500/- salary.
Regards,
Vilas
From India, Nasik
Dear friend below 6500/- we can calculate 3.67%,8.33% above 6500/- pension:541/- pf: 239/- only from employer employee -share12% o.k bye Thanks®ards e.ramesh sr.personnel officer chittoor
From India, Hyderabad
From India, Hyderabad
Dear friend,
1. Above 6500/- salary - pf is not compulsory
2. Purely both employee & employer willingness
3. Once a person entered into pf act even he gets above 6500/- he cannot quit from the pf act subject to working with the same management.
4. Pf can be restricted to 6500 [basic + da] and 12% of pf is 780/-
5. He can advise the management to deduct more than 780/- but their is no need to contribute the same by the management. Max of 780/- by management contribution.
That's it
bye
s.gopal
From India, Coimbatore
1. Above 6500/- salary - pf is not compulsory
2. Purely both employee & employer willingness
3. Once a person entered into pf act even he gets above 6500/- he cannot quit from the pf act subject to working with the same management.
4. Pf can be restricted to 6500 [basic + da] and 12% of pf is 780/-
5. He can advise the management to deduct more than 780/- but their is no need to contribute the same by the management. Max of 780/- by management contribution.
That's it
bye
s.gopal
From India, Coimbatore
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls