Query Regarding PF Admin Charges:
Case – Employee basic is 10000/- per month. Company depositing PF on the PF ceiling 6500/- on employer & employee share. But employee wants to add voluntary PF contribution 12% on his actual basic i.e. 10000/- per month. So now admin charges will be applicable on PF Basic ceiling 6500/- or actual basic 10000/- P.F Inspector is enforcing admin charges will be applicable on actual basic i.e. 10000/- not in 6500/-. Please give clarity about the query, written evidence will be appreciated.
Reg
Mahender Singh
From India, Faridabad
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1Case – Employee basic is 10000/- per month. Company depositing PF on the PF ceiling 6500/- on employer & employee share. But employee wants to add voluntary PF contribution 12% on his actual basic i.e. 10000/- per month. So now admin charges will be applicable on PF Basic ceiling 6500/- or actual basic 10000/- P.F Inspector is enforcing admin charges will be applicable on actual basic i.e. 10000/- not in 6500/-. Please give clarity about the query, written evidence will be appreciated.
Reg
Mahender Singh
From India, Faridabad
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Admin charge is paid from the Employer’s contribution so i think what you are doing is right.
From India, Pune
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From India, Pune
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[QUOTE=Mahaender Siingh;1822000]Query Regarding PF Admin Charges:
Case – Employee basic is 10000/- per month. Company depositing PF on the PF ceiling 6500/- on employer & employee share. But employee wants to add voluntary PF contribution 12% on his actual basic i.e. 10000/- per month. So now admin charges will be applicable on PF Basic ceiling 6500/- or actual basic 10000/- P.F Inspector is enforcing admin charges will be applicable on actual basic i.e. 10000/- not in 6500/-. Please give clarity about the query, written evidence will be appreciated.
Reg
Mahender Singh[/QUOTE
Dear PF INSP. is absolutly right it will be applicable on 10000 / (actual basic)
From India, Delhi
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Case – Employee basic is 10000/- per month. Company depositing PF on the PF ceiling 6500/- on employer & employee share. But employee wants to add voluntary PF contribution 12% on his actual basic i.e. 10000/- per month. So now admin charges will be applicable on PF Basic ceiling 6500/- or actual basic 10000/- P.F Inspector is enforcing admin charges will be applicable on actual basic i.e. 10000/- not in 6500/-. Please give clarity about the query, written evidence will be appreciated.
Reg
Mahender Singh[/QUOTE
Dear PF INSP. is absolutly right it will be applicable on 10000 / (actual basic)
From India, Delhi
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Dear Please provide any circular, Act, Sec., notification issued by PF authority to clear more about the query. Reg
From India, Faridabad
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From India, Faridabad
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Dear Friends, Admin charges shall be paid on total wages and EDLI & EDLI Admin charges shall be restricted to Rs. 6,500/-. Regards, AVGN Vara Prasad
From India, Kakinada
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From India, Kakinada
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Hi Mahender, Admin. charges are payable of actual basic where as EDLI & Admin. on EDLI is paid on RS.6500/- basic salary p.m. indira
From India, Mumbai
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From India, Mumbai
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If the employee and employer both are contributing 10000/=, then the admin charges are on 10000/=.
If the employee and employer are contributing 6500 and the remaining amount is deducted from the employee's salary as a voluntary contribution, then the admin charges are on 6500/=.
Sanjeev Sharma PF & ESI Consultant
From India, Chandigarh
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If the employee and employer are contributing 6500 and the remaining amount is deducted from the employee's salary as a voluntary contribution, then the admin charges are on 6500/=.
Sanjeev Sharma PF & ESI Consultant
From India, Chandigarh
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Sanjeev Sharma is correct. If the employer is contributing an equal amount as the employer's share on voluntary contributions by the employee, then you have to pay administrative charges on Rs. 10,000. If you are not contributing an equal amount as the employer's share on voluntary contributions by the employee, administrative charges are applicable on Rs. 6,500. As your query is not clear on this particular point, you can decide for yourself.
Prahalatha
From India, Bangalore
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Prahalatha
From India, Bangalore
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Dear Mahender Singh,
Greetings for the day,
I have gone through your query and noticed that the employee's basic salary is Rs. 10,000, but the deduction for EPF is based on Rs. 6,500, amounting to Rs. 780. The employee wishes to contribute voluntarily based on Rs. 10,000, which is not possible. Since the deduction for EPF is on Rs. 6,500, I suggest informing the employee to contribute VPF amounting to Rs. 780. Therefore, the total Employee Contribution should be Rs. 1,560.
The Employer Contribution should be 3.67%, which equals Rs. 239, and the Employer Contribution should be 8.33%, which amounts to Rs. 541. Note that VPF contribution impacts only the employee's share, not the employer's share. Additionally, contributions can only be made on EPF salary, and voluntary contributions should only reflect in the PF account under the employee's share, not separately. In the EPF annual return (Form 3A), you need to indicate the percentage of voluntary contribution at the top, but under Employee Share, you must mention Rs. 1,580.
Regarding the EPF challan, it should be structured as follows:
- A/C1 = (12% + VPF of EPF salary + 3.67% employer share)
- A/C2 = 1.1% of EPF salary
- A/C10 = 8.33% of EPS Salary
- A/C21 = 0.5% of EPS/EDLI Salary
- A/C22 = 0.01% of EPS/EDLI Salary
I hope this clarifies all your doubts. If you have any further queries, feel free to ask.
Thanks & Regards,
Sumit Kumar Saxena
+91-9899669071
From India, Ghaziabad
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Greetings for the day,
I have gone through your query and noticed that the employee's basic salary is Rs. 10,000, but the deduction for EPF is based on Rs. 6,500, amounting to Rs. 780. The employee wishes to contribute voluntarily based on Rs. 10,000, which is not possible. Since the deduction for EPF is on Rs. 6,500, I suggest informing the employee to contribute VPF amounting to Rs. 780. Therefore, the total Employee Contribution should be Rs. 1,560.
The Employer Contribution should be 3.67%, which equals Rs. 239, and the Employer Contribution should be 8.33%, which amounts to Rs. 541. Note that VPF contribution impacts only the employee's share, not the employer's share. Additionally, contributions can only be made on EPF salary, and voluntary contributions should only reflect in the PF account under the employee's share, not separately. In the EPF annual return (Form 3A), you need to indicate the percentage of voluntary contribution at the top, but under Employee Share, you must mention Rs. 1,580.
Regarding the EPF challan, it should be structured as follows:
- A/C1 = (12% + VPF of EPF salary + 3.67% employer share)
- A/C2 = 1.1% of EPF salary
- A/C10 = 8.33% of EPS Salary
- A/C21 = 0.5% of EPS/EDLI Salary
- A/C22 = 0.01% of EPS/EDLI Salary
I hope this clarifies all your doubts. If you have any further queries, feel free to ask.
Thanks & Regards,
Sumit Kumar Saxena
+91-9899669071
From India, Ghaziabad
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Dear Prahalatha,
For more clarity, the employer is deducting PF on 6500/- instead of the actual basic salary, but employees want PF to be deducted on the actual basic salary at the same percentage, i.e., 12%. The difference will be considered as VPF contribution. In short, the employer deducts PF on 6500 @ 12%, and the employee's PF is deducted at 12% on the actual basic salary, which is more than 6500/-. Now, the query is whether admin charges will be paid on 6500/- or the actual basic salary.
Regards,
Mahender Singh
From India, Faridabad
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For more clarity, the employer is deducting PF on 6500/- instead of the actual basic salary, but employees want PF to be deducted on the actual basic salary at the same percentage, i.e., 12%. The difference will be considered as VPF contribution. In short, the employer deducts PF on 6500 @ 12%, and the employee's PF is deducted at 12% on the actual basic salary, which is more than 6500/-. Now, the query is whether admin charges will be paid on 6500/- or the actual basic salary.
Regards,
Mahender Singh
From India, Faridabad
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