Please provide legal reference to confirm provident fund contribution maximum of IN 780 (i.e.12% on Basic ceiling of INR6500). Provident Fund official website link where this point is clarified.
From India
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2From India
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Dear Rajpal,
According to the PF Act, every month employees as well as employers have to deposit 12% of the basic salary into the provident fund. The maximum ceiling to become a member of the PF fund is 6500/- rupees basic per month. Even those who have crossed the limit of 6500/- may remain a member of the fund, but the contribution would remain constant at the ceiling, i.e. 6500/- rupees per month. 12% of this 6500/- comes to 780/- rupees.
That's why it is said that the Provident Fund contribution has a maximum of INR 780/-.
Hope this helps to clear your query.
Regards,
Amit Seth
From India, Ahmadabad
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According to the PF Act, every month employees as well as employers have to deposit 12% of the basic salary into the provident fund. The maximum ceiling to become a member of the PF fund is 6500/- rupees basic per month. Even those who have crossed the limit of 6500/- may remain a member of the fund, but the contribution would remain constant at the ceiling, i.e. 6500/- rupees per month. 12% of this 6500/- comes to 780/- rupees.
That's why it is said that the Provident Fund contribution has a maximum of INR 780/-.
Hope this helps to clear your query.
Regards,
Amit Seth
From India, Ahmadabad
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Employees' Provident Funds Scheme, 1952
Sec 2 subsection (f) "excluded employee" means— [(i) an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund under clause (a) or (c) of subparagraph (1) of paragraph 69;] [(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund exceeds six thousand and five hundred rupees per month;]
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Sec 26A. (1) A member of the Fund shall continue to be a member until he withdraws under paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of exemption under paragraph 27 or paragraph 27A.
Explanation: In the case of a claim for a refund by a member under subparagraph (2) of paragraph 69, the membership of the Fund shall be deemed to have been terminated from the date the payment is authorized to him by the authority specified in this behalf by the Commissioner irrespective of the date of the claim.
(2) Every member employed as an employee other than an excluded employee, in a factory or other establishment to which this Scheme applies shall contribute to the Fund, and the contribution shall be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in paragraph 29:
Provided that subject to the provisions contained in subparagraph (6) of paragraph 26 and in subparagraph (1) of paragraph 27 or subparagraph (1) of paragraph 27A, where the monthly pay of such a member exceeds twenty-six thousand five hundred rupees the contribution payable by him, and in respect of him by the employer, shall be limited to the amounts payable on a monthly pay of twenty-six thousand five hundred rupees including dearness allowance, retaining allowance (if any), and cash value of food concession.
Thanks and regards,
Bhavik H. Chheda
Chheda Consultancy Services main
From India, Pune
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Sec 2 subsection (f) "excluded employee" means— [(i) an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund under clause (a) or (c) of subparagraph (1) of paragraph 69;] [(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund exceeds six thousand and five hundred rupees per month;]
ALSO READ
Sec 26A. (1) A member of the Fund shall continue to be a member until he withdraws under paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of exemption under paragraph 27 or paragraph 27A.
Explanation: In the case of a claim for a refund by a member under subparagraph (2) of paragraph 69, the membership of the Fund shall be deemed to have been terminated from the date the payment is authorized to him by the authority specified in this behalf by the Commissioner irrespective of the date of the claim.
(2) Every member employed as an employee other than an excluded employee, in a factory or other establishment to which this Scheme applies shall contribute to the Fund, and the contribution shall be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in paragraph 29:
Provided that subject to the provisions contained in subparagraph (6) of paragraph 26 and in subparagraph (1) of paragraph 27 or subparagraph (1) of paragraph 27A, where the monthly pay of such a member exceeds twenty-six thousand five hundred rupees the contribution payable by him, and in respect of him by the employer, shall be limited to the amounts payable on a monthly pay of twenty-six thousand five hundred rupees including dearness allowance, retaining allowance (if any), and cash value of food concession.
Thanks and regards,
Bhavik H. Chheda
Chheda Consultancy Services main
From India, Pune
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Employee Provident Fund and MP Act, 1952.pdf
Provident Fund Act.ppt