Dear All,
Please let me know the employer's PF contribution towards an employee's account.
Also let me know the is it towards gross salary or towards CTC?
In an interview I was asked what is employer's contribution towards employee's PF account. I answered 12 percent. But the interviewer said it is 1.61 percent. Is she correct?
Warm Regards,
S.Mukherjee.
From India, Calcutta
Please let me know the employer's PF contribution towards an employee's account.
Also let me know the is it towards gross salary or towards CTC?
In an interview I was asked what is employer's contribution towards employee's PF account. I answered 12 percent. But the interviewer said it is 1.61 percent. Is she correct?
Warm Regards,
S.Mukherjee.
From India, Calcutta
Dear Mr.Mukherjee, Normally PF calculated on Basic and DA. Regarding employers contribution towards EPF is :- 3.67% and FPF :- is 8.33% on basic and DA Regards Aniruddha
From India, Madras
From India, Madras
Mr. Mukherjee,
Total Employer Share towards EPF is 12.61% of the Basic and DA.
Here is the bifurcation for your understanding:
1. Out of 12% of the contribution, 8.33% share goes to EPS (Pension Scheme) and 3.67% goes to EPF (Provident Fund).
2. 0.5% towards EDLI (Employee Deposit Link Insurance) Scheme
3. Administrative charges of 1.10% towards EPF and 0.01% towards EDLIS.
Total : 12.61%
Hope this resolves your query.
From India, Thana
14Total Employer Share towards EPF is 12.61% of the Basic and DA.
Here is the bifurcation for your understanding:
1. Out of 12% of the contribution, 8.33% share goes to EPS (Pension Scheme) and 3.67% goes to EPF (Provident Fund).
2. 0.5% towards EDLI (Employee Deposit Link Insurance) Scheme
3. Administrative charges of 1.10% towards EPF and 0.01% towards EDLIS.
Total : 12.61%
Hope this resolves your query.
From India, Thana
manasi is correct with reference to breakup of the contribution.
The total employer contribution is 13.61% (including administrative charges)
The important point is The Cap limit for the employer contribution can be Rs 6500 which is basic & DA. In cases where the Basic Or Basic & DA is greater than Rs 6500 then the contribution can be Rs 780 which is 12 % of the said figure.
From India, Pune
The total employer contribution is 13.61% (including administrative charges)
The important point is The Cap limit for the employer contribution can be Rs 6500 which is basic & DA. In cases where the Basic Or Basic & DA is greater than Rs 6500 then the contribution can be Rs 780 which is 12 % of the said figure.
From India, Pune
1. Both, the employee and employer will contribute 12% each of the Basic+DA - whatever is this amount while lesser to Rs 6500 or Rs 6500 or more than Rs 6500. 12% of the Basic+DA, I repeat, is to be contributed each by the Employer and Employee.
2. The Employer will also contribute 1.61% (Total 13.61%) towards EDLI / Admin charges.
3. Out of the 12% contributed by the Employer, 8.33% will go to the Pension Fund and the remaining will go to the PF.
4. The 8.33% to the Pension Fund is limited to Rs 6500 (which is Rs 780) - the rest will be credited to the PF.
5. In case of premature withdrawal of membership to the EPF & MP, the pension contribution till then will be added to the PF while withdrawing.
Rajusiachen
From India, Coimbatore
2. The Employer will also contribute 1.61% (Total 13.61%) towards EDLI / Admin charges.
3. Out of the 12% contributed by the Employer, 8.33% will go to the Pension Fund and the remaining will go to the PF.
4. The 8.33% to the Pension Fund is limited to Rs 6500 (which is Rs 780) - the rest will be credited to the PF.
5. In case of premature withdrawal of membership to the EPF & MP, the pension contribution till then will be added to the PF while withdrawing.
Rajusiachen
From India, Coimbatore
To All, In my earlier quote I have mentioned wrongly as 12.61% of employer contribution. kindly read it as 13.61%.
From India, Thana
From India, Thana
Hi All,
Lots of Thanks for your reply and regards.
It seems the person taking interview, by correcting me as only 1.61%, was wrong from your discussion where I answered her 12% although I was actually not right.
Anyways, after rejecting me i asked her for my feedback she told you have nil knowledge on the matters of pf,esi etc.
Now I want to forget that episode and want to move forward to a real knowledgeable employer.
Regards & Thanks,
S.Mukherjee.
From India, Calcutta
Lots of Thanks for your reply and regards.
It seems the person taking interview, by correcting me as only 1.61%, was wrong from your discussion where I answered her 12% although I was actually not right.
Anyways, after rejecting me i asked her for my feedback she told you have nil knowledge on the matters of pf,esi etc.
Now I want to forget that episode and want to move forward to a real knowledgeable employer.
Regards & Thanks,
S.Mukherjee.
From India, Calcutta
Is there any upper limit for employer contribution ? Can an employer decide the upper limit of his contribution irrespective of the 12 % of Basic or is it mandatory for him to pay 12 % of basic irrespective of how big the basic amount is ?
Regards
Krish
From India, Madras
Regards
Krish
From India, Madras
Hi all,
Mr.Rajusiachen said that everything is right, but the below calculation is wrong. why b'z 8.33% will goes to Pension fund is limited to Rs.6500 (which is Rs.541 only ) the rest amt will goes to the PF cont.
kindly update this all.
The 8.33% to the Pension Fund is limited to Rs 6500 (which is Rs 780) - the rest will be credited to the PF.
Rgds,
Rajavel
chennai
From India, Madras
Mr.Rajusiachen said that everything is right, but the below calculation is wrong. why b'z 8.33% will goes to Pension fund is limited to Rs.6500 (which is Rs.541 only ) the rest amt will goes to the PF cont.
kindly update this all.
The 8.33% to the Pension Fund is limited to Rs 6500 (which is Rs 780) - the rest will be credited to the PF.
Rgds,
Rajavel
chennai
From India, Madras
PAYMENT" EMPLOYEES EMPLOYERS TOTAL
A/c 1 12% 3.67% - 15.67 % This stands for Provident fund Contribution
A/c 2 0 1.1 0% - 1.10 % This stands for Admin Charges
A/c 10 0 8.33% - 8.33 % This Stands for Pension fund
A/c 21 0 0.5 % - .50% This stands for EDLI
A/c 22 0 0.01% - .01% This Stands for EDLI Admin Charges
TOTAL PAY 12% 13.61% 25.61%
So 12% has to be contributed from employee side and rest 13.61% has to be from employer side .It has been seen in various companies that 24% deduction is made from employee salary,its illegal and if caught by PF authorities with complaints,you may be in trouble.Another practice seen is PF is these %'es has to be deducted from Salary which according to PF law is Basic+DA
Regards,
Suresh M.G
From United Arab Emirates, Dubai
A/c 1 12% 3.67% - 15.67 % This stands for Provident fund Contribution
A/c 2 0 1.1 0% - 1.10 % This stands for Admin Charges
A/c 10 0 8.33% - 8.33 % This Stands for Pension fund
A/c 21 0 0.5 % - .50% This stands for EDLI
A/c 22 0 0.01% - .01% This Stands for EDLI Admin Charges
TOTAL PAY 12% 13.61% 25.61%
So 12% has to be contributed from employee side and rest 13.61% has to be from employer side .It has been seen in various companies that 24% deduction is made from employee salary,its illegal and if caught by PF authorities with complaints,you may be in trouble.Another practice seen is PF is these %'es has to be deducted from Salary which according to PF law is Basic+DA
Regards,
Suresh M.G
From United Arab Emirates, Dubai
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