Dear All,
I have one query, please let me give the solution.
We are very small organization and we are deducting the PF amount within the limit of 6500/- Rs.
Our Case is;;
In the last month, one of the employee met with an accident and she attended her duty from 1st sept. to 20th sept. 2013 then after 21st she met within an accident and remaining days she not attended her duty. And her salary of these 20 days is Rs. 8000 (Basic only). So, can we deduct the PF amount like 6500/- * 12% of what?
Her salary is deducted from the month of Sept. 2013. (10 Days)
i.e. calculation is like
1. If her 20 days salary is crossed the limit of 6500 then we can deduct the PF is 6500*12%
2. and if her 20 days salary is crossed the limit of 6500 and she not attended her duty remaining 10 days and if her salary is crossed 6500 then we consider accordingly her present days only and we can deduct pf respect to (6500/30)*20 days * 12% .... Is it ok
Please give me solution about this query… please.
Regards,
Disha G.
Human Resource Department
From India, Ahmedabad
Acknowledge(0)
Amend(0)
3I have one query, please let me give the solution.
We are very small organization and we are deducting the PF amount within the limit of 6500/- Rs.
Our Case is;;
In the last month, one of the employee met with an accident and she attended her duty from 1st sept. to 20th sept. 2013 then after 21st she met within an accident and remaining days she not attended her duty. And her salary of these 20 days is Rs. 8000 (Basic only). So, can we deduct the PF amount like 6500/- * 12% of what?
Her salary is deducted from the month of Sept. 2013. (10 Days)
i.e. calculation is like
1. If her 20 days salary is crossed the limit of 6500 then we can deduct the PF is 6500*12%
2. and if her 20 days salary is crossed the limit of 6500 and she not attended her duty remaining 10 days and if her salary is crossed 6500 then we consider accordingly her present days only and we can deduct pf respect to (6500/30)*20 days * 12% .... Is it ok
Please give me solution about this query… please.
Regards,
Disha G.
Human Resource Department
From India, Ahmedabad
Acknowledge(0)Amend(0)
Hi you can deduct pf on actual drawn basic for 20days and pay.there is no need to pay on Rs.6500/-. the calculation formula shown by you is correct.
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Disha,
Even if the salary exceeds Rs. 6500, the ceiling salary will be treated as 6500 for the whole month. Accordingly, for 20 days of attendance out of 30, the contribution will be 6500 x 20 / 30 x 12% = 520.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Even if the salary exceeds Rs. 6500, the ceiling salary will be treated as 6500 for the whole month. Accordingly, for 20 days of attendance out of 30, the contribution will be 6500 x 20 / 30 x 12% = 520.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Disha,
Greetings!!!
You must understand that PF is a fixed contribution and you can not decrease it. It has either to be paid on the basic salary or on 6500 ( keeping in mind , Cap aspect).
If i am not wrong, you are misunderstanding the concept of basic salary and gross salary. Plz clarify
From India, Delhi
Acknowledge(0)Amend(0)
Greetings!!!
You must understand that PF is a fixed contribution and you can not decrease it. It has either to be paid on the basic salary or on 6500 ( keeping in mind , Cap aspect).
If i am not wrong, you are misunderstanding the concept of basic salary and gross salary. Plz clarify
From India, Delhi
Acknowledge(0)Amend(0)
SPKR:
Disha
As per the details posted your employee is drawing more than Rs.6500/- She is not covered under EPF scheme1952 under section 2(f).
According to Section 2(f) EPF Scheme 1952 : excluded employee” mean—
(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 sub-paragraph (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;
Very recently the limit of Rs.6500/- is enhanced in an amendment to the said Act.
SPKR
From India, Bangalore
Acknowledge(0)Amend(0)
Disha
As per the details posted your employee is drawing more than Rs.6500/- She is not covered under EPF scheme1952 under section 2(f).
According to Section 2(f) EPF Scheme 1952 : excluded employee” mean—
(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 sub-paragraph (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;
Very recently the limit of Rs.6500/- is enhanced in an amendment to the said Act.
SPKR
From India, Bangalore
Acknowledge(0)Amend(0)
Disha,
If you are contributing PF for the employees with basic above Rs. 6500/- subject to statutory ceiling, then in this particular case, the basic for 20 days will be deemed as 6500 x 20 / 30.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
If you are contributing PF for the employees with basic above Rs. 6500/- subject to statutory ceiling, then in this particular case, the basic for 20 days will be deemed as 6500 x 20 / 30.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Hi, PF deduction is on the amount of 6500 maximum, and you have to deduct PF on 6500, i.e., 780 (12%). If an employee gets an 8000 basic salary, you have to deduct PF on the amount of 6500 if he only comes to work for 20 days. In such a case, he would receive 5333 Rs, and PF will be deducted on the full amount because the 20 days' salary does not exceed the limit of 6500. If the salary for 20 days crosses this limit, the PF amount remains at 6500.
From India, Bhubaneswar
Acknowledge(0)Amend(0)
From India, Bhubaneswar
Acknowledge(0)Amend(0)
Madam/Sir,
PF is always deducted on the salary earned during the month. If the salary exceeds Rs.6500/- Statutorily you can restrict deduction upto Rs.6500/-. If you are already contributing/deduction PF on full salary (i.e in excess of Rs.6500) then the PF should be deducted on the actual sum paid.
Regards
Pradheep
From India, Vellore
Acknowledge(0)Amend(0)
PF is always deducted on the salary earned during the month. If the salary exceeds Rs.6500/- Statutorily you can restrict deduction upto Rs.6500/-. If you are already contributing/deduction PF on full salary (i.e in excess of Rs.6500) then the PF should be deducted on the actual sum paid.
Regards
Pradheep
From India, Vellore
Acknowledge(0)Amend(0)
Well, I have seen all the discussions. But one thing is for sure, that none is talking about the limit of 6,500. Please note that the limit of Rs. 6,500 is related not just to a mere figure but to the month. In other words, a salary of Rs. 6,500 per month is the limit.
In this case, even though the salary is Rs. 8,000 per month, and for full working days the limit of Rs. 6,500 per month can easily be applicable, it can be confusing when the salary earned is less than the prescribed limit of Rs. 6,500. For 20 days of work, the under-ceiling salary will be Rs. 4,333 and the over-ceiling salary will be Rs. 1,000, making a total of Rs. 5,333 (amount in paisa ignored). In my opinion, the PF should be calculated only on Rs. 4,333, i.e., the under-ceiling salary and not on the entire salary of Rs. 5,333. This logic needs to be clarified because for computer programs, such points can pose a significant hurdle.
Adv. K. H. Kulkarni
From India, Kolhapur
Acknowledge(0)Amend(0)
In this case, even though the salary is Rs. 8,000 per month, and for full working days the limit of Rs. 6,500 per month can easily be applicable, it can be confusing when the salary earned is less than the prescribed limit of Rs. 6,500. For 20 days of work, the under-ceiling salary will be Rs. 4,333 and the over-ceiling salary will be Rs. 1,000, making a total of Rs. 5,333 (amount in paisa ignored). In my opinion, the PF should be calculated only on Rs. 4,333, i.e., the under-ceiling salary and not on the entire salary of Rs. 5,333. This logic needs to be clarified because for computer programs, such points can pose a significant hurdle.
Adv. K. H. Kulkarni
From India, Kolhapur
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
World Health days.doc
Circular Dated 28-10-2016 for settlement of PF Death Case Claims within 7 days.pdf