Hi to all, this is Subhrat. I am an HR student. I want to know the PF contribution made by the employee and employer and also want to know from whom the contribution will be deducted from the basic salary.
Regards,
Subhrat
From India, Mumbai
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2Regards,
Subhrat
From India, Mumbai
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You are a student of HR. I am too. Welcome to this forum with my response to your first query/post. Your query is a bit confusing to me, but I am pleased to reply to you.
PF Contribution Details
The PF contribution made by the employee and employer is at 12% of the employee's salary. Salary includes basic pay, DA, and any retaining allowance paid.
Compulsory Contribution Conditions
For salaries below Rs. 6500 per month, PF contribution is compulsory. It is not compulsory for salaries above Rs. 6500 if the employee is not a member of PF already. Once an employee becomes a PF member, they must remain a member until the end.
Reading and Resources
Reading should be your passion. You need to read extensively, especially about the features of various labor laws. I recommend purchasing the book "Employer's Guide to Labour Laws" by S R Samant. If you do not understand any provision, feel free to ask this forum for help.
I hope this helps clarify things for you.
Regards
From India, Mumbai
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PF Contribution Details
The PF contribution made by the employee and employer is at 12% of the employee's salary. Salary includes basic pay, DA, and any retaining allowance paid.
Compulsory Contribution Conditions
For salaries below Rs. 6500 per month, PF contribution is compulsory. It is not compulsory for salaries above Rs. 6500 if the employee is not a member of PF already. Once an employee becomes a PF member, they must remain a member until the end.
Reading and Resources
Reading should be your passion. You need to read extensively, especially about the features of various labor laws. I recommend purchasing the book "Employer's Guide to Labour Laws" by S R Samant. If you do not understand any provision, feel free to ask this forum for help.
I hope this helps clarify things for you.
Regards
From India, Mumbai
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but what about the rest 1.61% that is made by the employer??
From India, Mumbai
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From India, Mumbai
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With respect to PF contribution, an employee contributes 12% of their basic + DA, while an employer pays 13.61% of the employee's basic + DA.
Breakup of Employer Contributions:
1. Employee Provident Fund - 3.67%
2. Employee Pension Scheme - 8.33%
3. Employee Deposit Linked Insurance - 0.5%
4. EPF Administrative Charges - 1.1%
5. EDLIS Administrative Charges - 0.01%
I hope this information satisfies your query. Feel free to reach out if you have any further questions.
Regards,
Garima Singh
From India, Belgaum
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Breakup of Employer Contributions:
1. Employee Provident Fund - 3.67%
2. Employee Pension Scheme - 8.33%
3. Employee Deposit Linked Insurance - 0.5%
4. EPF Administrative Charges - 1.1%
5. EDLIS Administrative Charges - 0.01%
I hope this information satisfies your query. Feel free to reach out if you have any further questions.
Regards,
Garima Singh
From India, Belgaum
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U mean the 12% will be deducted from the employee salary & the employer will pay extra13.61% for pf????
From India, Mumbai
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From India, Mumbai
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Yes, you are correct.Employer will pay extra 13.61% of Basic + DA.
From India, Belgaum
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From India, Belgaum
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it means the total amount of pf that will deposite in the employee pf account is 12%+13.61%=25.61%??
From India, Mumbai
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From India, Mumbai
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No dear, Only Employer 12% and Employee 12% goes to PF and Pension Fund. Remaining 1.61% goes to Admin charges and Insurance (EDLI) Fund. The above said 24% only you can claim at the settlement.
From India, Secunderabad
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From India, Secunderabad
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Good to know the basic details. It depends on the employee's contribution changes. The basic calculation is 12% of BASIC+DA from the employee, with an equal contribution from the employer. In such cases, the employee can contribute 24% directly from their BASIC+DA.
All the best for your future.
Thanks,
Jai
From India, Chennai
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All the best for your future.
Thanks,
Jai
From India, Chennai
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It's good to inquire about the remaining 1.61%. This portion, 1.61%, should be deducted from the employer's contribution. I recommend reading the PF Act of 1952, as it will provide useful information for you.
Breakdown of the 1.61% Contribution
Within the 1.61%, the breakdown includes administrative charges of 1.10%, EDLI (Employee Deposit Linked Insurance) charges of 0.50%, and administrative charges of 0.01% on EDLI.
From India, Pune
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Breakdown of the 1.61% Contribution
Within the 1.61%, the breakdown includes administrative charges of 1.10%, EDLI (Employee Deposit Linked Insurance) charges of 0.50%, and administrative charges of 0.01% on EDLI.
From India, Pune
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Dear all, kindly assist me. As per the EPF Act, whatever PF is deducted from the employee, the same amount should be submitted by the employer. However, my employer deducted both my part of PF as well as his part of PF contribution from my salary. What action can I take against him to avoid such unnecessary deductions?
From India, Delhi
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From India, Delhi
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Employer-PF-res trict to wages of Rs 6500.pdf
Employee Benefits.doc