Sir,
I want to know if an organization pays provident fund on a ceiling limit basis of Rs 6,500, then in such a case, if an employee has worked for a part month (say 20 days) and earned wages for PF equal to Rs 6,000, will the limit of Rs 6,500 be revised on a pro-rata basis for 20 days for comparison or will it remain the same?
From India, Delhi
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I want to know if an organization pays provident fund on a ceiling limit basis of Rs 6,500, then in such a case, if an employee has worked for a part month (say 20 days) and earned wages for PF equal to Rs 6,000, will the limit of Rs 6,500 be revised on a pro-rata basis for 20 days for comparison or will it remain the same?
From India, Delhi
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Ceiling limit should not be confused and utilized on a pro-rata basis. Wages are to be calculated on a pro-rata basis, and if earned wages are above the ceiling limit, then the ceiling limit may be applied.
Regards,
Bhavik Chheda
9833009299
Chheda Consultancy Services: Consultants for Payroll Processing, Labour Laws, Provident Fund, ESIC, Professional Tax, MLWf, Shop Licence, etc. in Mumbai, Maharashtra
From India, Pune
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6Regards,
Bhavik Chheda
9833009299
Chheda Consultancy Services: Consultants for Payroll Processing, Labour Laws, Provident Fund, ESIC, Professional Tax, MLWf, Shop Licence, etc. in Mumbai, Maharashtra
From India, Pune
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Dear Harshit Jain,
The salary will remain constant even if his attendance gets reduced. For example, if the salary for 30 days is Rs. 12,000 and he has only one day of attendance, his earned wages will be 12,000/30 = 400. However, the salary will be treated as 12,000.
Abbas.P.S
From India, Bangalore
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The salary will remain constant even if his attendance gets reduced. For example, if the salary for 30 days is Rs. 12,000 and he has only one day of attendance, his earned wages will be 12,000/30 = 400. However, the salary will be treated as 12,000.
Abbas.P.S
From India, Bangalore
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The Ceiling is Rs.6500/- salary earned during the month. It the earned salary is less than Rs.6500/-, the PF deduction will be restricted to the lesser salary.
From India, Hyderabad
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From India, Hyderabad
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Sir/Madam,
My question is very simple. If an organization contributes PF on a ceiling limit basis, then if an employee has worked for less than one month, say 10 days, and earned Rs 6200 for these days, will the ceiling limit be revised on a pro-rata basis for comparison (i.e., 2096 (6500/31*10)) and PF deducted on 2096 (as the revised ceiling limit), or will there be no revision in the ceiling limit, and PF deducted on Rs 6200, being the lower of 6500 or 6200?
Please answer in reference to this example.
From India, Delhi
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My question is very simple. If an organization contributes PF on a ceiling limit basis, then if an employee has worked for less than one month, say 10 days, and earned Rs 6200 for these days, will the ceiling limit be revised on a pro-rata basis for comparison (i.e., 2096 (6500/31*10)) and PF deducted on 2096 (as the revised ceiling limit), or will there be no revision in the ceiling limit, and PF deducted on Rs 6200, being the lower of 6500 or 6200?
Please answer in reference to this example.
From India, Delhi
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls