Dear sir
We are a SSI unit, having about 37 employees and are covered under both PF & ESIC.
This query is regarding PF contribution @12%.
4 of our employees have crossed the limit of Rs. 6500 some time back and due to Ignorance we have been deducting PF @12% on the higher pay all these period.
Some of our other employees who have been drawing below Rs. 6500 are also likely to cross the limit of rs. 6500/ shortly.
Now we have been advised to e file our PF from Apl2012 and have an option to deduct PF at the pay of Rs. 6500.
Please advice
1. If we can now take the option for reduced deduction of PF for the 4
Employees and deduct PF on Rs. 6500/= while their actual salary
will may be more than Rs. 6500/=
2. For the other employees can we deduct PF on Rs. 6500/ even while
their salary might have crossed Rs. 6500/=
Please advice.
Yours truly,
PONNAPPAN PJ, Managing Director,
Southern Union Pharmaceuticals (Kerala) Pvt. Ltd.,
T.R.NAIR ROAD, XI/778,
From United States, New York
We are a SSI unit, having about 37 employees and are covered under both PF & ESIC.
This query is regarding PF contribution @12%.
4 of our employees have crossed the limit of Rs. 6500 some time back and due to Ignorance we have been deducting PF @12% on the higher pay all these period.
Some of our other employees who have been drawing below Rs. 6500 are also likely to cross the limit of rs. 6500/ shortly.
Now we have been advised to e file our PF from Apl2012 and have an option to deduct PF at the pay of Rs. 6500.
Please advice
1. If we can now take the option for reduced deduction of PF for the 4
Employees and deduct PF on Rs. 6500/= while their actual salary
will may be more than Rs. 6500/=
2. For the other employees can we deduct PF on Rs. 6500/ even while
their salary might have crossed Rs. 6500/=
Please advice.
Yours truly,
PONNAPPAN PJ, Managing Director,
Southern Union Pharmaceuticals (Kerala) Pvt. Ltd.,
T.R.NAIR ROAD, XI/778,
From United States, New York
Hi Mr. Ponnappan
If the employees Basic+DA exceeds 6500/- then Employee shall either contribute Rs. 780/- 12% on Basic+DA or they can even contribute 12% on full Basic+DA but employes can restrict to 12% on 6500/-. Once again its upon management decision. If Basic+DA is lessthan 6500/- then 12% on the same shall be contributed by both EE & ER
From India, Bangalore
639If the employees Basic+DA exceeds 6500/- then Employee shall either contribute Rs. 780/- 12% on Basic+DA or they can even contribute 12% on full Basic+DA but employes can restrict to 12% on 6500/-. Once again its upon management decision. If Basic+DA is lessthan 6500/- then 12% on the same shall be contributed by both EE & ER
From India, Bangalore
21-04-2012
Thanks for the clarification. The query below is till unanswered
An employee is drawing Rs. 7293 for the past more than 5 months, and due to ignorance we have been paying PF of Rs. 875/=
i.e. on the higher pay, instead of Rs. 6500/= (@12% Rs. 780/=)
Altogether 4 employees are being paid on the higher pay, like above.
Now in the e filing options, we can limit the maximum as Rs. 6500/ for the above mentioned employees.
Can we do this and pay PF of Rs. 780 for this employee & other 3 employees, even though their earlier contribution was Rs. 875/=
PF local office says that, once if we took the option to pay on the higher pay, it cannot be reverted to the lower pay of Rs. 6500/=
They also say that all the employees now crossing Rs.6500 limit will have to be deducted on the higher pay by our Company or we have to permission from Regional office of PF for deduction @Rs. 6500/=.
We, the employer will prefer to limit the PF contribution to all the employees @ Rs. 6500/= salary. Is this possible?
Please advice.
Yours truly
PONNAPPAN PJ
From United States, New York
Thanks for the clarification. The query below is till unanswered
An employee is drawing Rs. 7293 for the past more than 5 months, and due to ignorance we have been paying PF of Rs. 875/=
i.e. on the higher pay, instead of Rs. 6500/= (@12% Rs. 780/=)
Altogether 4 employees are being paid on the higher pay, like above.
Now in the e filing options, we can limit the maximum as Rs. 6500/ for the above mentioned employees.
Can we do this and pay PF of Rs. 780 for this employee & other 3 employees, even though their earlier contribution was Rs. 875/=
PF local office says that, once if we took the option to pay on the higher pay, it cannot be reverted to the lower pay of Rs. 6500/=
They also say that all the employees now crossing Rs.6500 limit will have to be deducted on the higher pay by our Company or we have to permission from Regional office of PF for deduction @Rs. 6500/=.
We, the employer will prefer to limit the PF contribution to all the employees @ Rs. 6500/= salary. Is this possible?
Please advice.
Yours truly
PONNAPPAN PJ
From United States, New York
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