Dear seniors/friends,
I had a doubt regarding PF contribution in certain conditions.
1. If 6500 is limited for employee categories like workers, staff, and managers, can we limit it only for workers?
2. Can we remit one challan in this category? (i) 6500 limitation for workers and (ii) no 6500 limitation for managers.
3. For 6 months, there is no limitation for all workers on the challan. After the 7th month, some workers are asking, "Please limit my PF wages to 6500." Is it possible to remit this in the 7th month?
Thank you.
From India, Chennai
Acknowledge(0)
Amend(0)
I had a doubt regarding PF contribution in certain conditions.
1. If 6500 is limited for employee categories like workers, staff, and managers, can we limit it only for workers?
2. Can we remit one challan in this category? (i) 6500 limitation for workers and (ii) no 6500 limitation for managers.
3. For 6 months, there is no limitation for all workers on the challan. After the 7th month, some workers are asking, "Please limit my PF wages to 6500." Is it possible to remit this in the 7th month?
Thank you.
From India, Chennai
Acknowledge(0)Amend(0)
Sir, As per my knowledge If you want to limit then you can because pf has not given any compulsion for this.
From India
Acknowledge(0)Amend(0)
29From India
Acknowledge(0)Amend(0)
Hi I hope this is possible. It is better to take a declaration letter from all the employees for any case
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
The PF Act stipulates that all employees drawing wages (basic plus DA) will be covered under the provisions of the statute. You cannot, and as a proactive HR practice, should not differentiate between workers and managers. I strongly recommend a uniform policy. Several progressive organizations allow for PF deductions on actual wages even if it exceeds the present limit of Rs. 6,500/- per month.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Poorni,
You need not limit the employee contribution to Rs. 6500/-; let it go towards saving for their future. You can restrict the employer contribution to Rs. 6500/-, i.e., Rs. 780/-, which can be split into Rs. 541/- as EPS and the balance into Er PF.
Thank you.
From India, Kumbakonam
Acknowledge(0)Amend(0)
You need not limit the employee contribution to Rs. 6500/-; let it go towards saving for their future. You can restrict the employer contribution to Rs. 6500/-, i.e., Rs. 780/-, which can be split into Rs. 541/- as EPS and the balance into Er PF.
Thank you.
From India, Kumbakonam
Acknowledge(0)Amend(0)
Dear friends,
There is no compulsion on either side to go beyond Rs. 6500/- without limiting at that. It's also true many employees compel offices to minimize the deduction to the extent possible in order to increase their take-home pay at the cost of 'compulsory savings' in the form of PF for one reason or another; maybe they are justified in some cases. I wish employers shouldn't yield to the pressure whatsoever may be their reasoning.
But for beyond Rs. 6500/-, it is your/their choice. It should be avoided - any frequent lowering or hiking lest you will have confusion in administering them. Of course, in the worst-case scenario, they can avail refundable loans or part withdrawal to the extent possible, which can be facilitated on merit.
Secondly, having different norms for different categories is unwelcome and might lead to friction between the groups, inviting trouble for the HR. Even dual challan is also not required and to be avoided.
From India, Bangalore
Acknowledge(0)Amend(0)
There is no compulsion on either side to go beyond Rs. 6500/- without limiting at that. It's also true many employees compel offices to minimize the deduction to the extent possible in order to increase their take-home pay at the cost of 'compulsory savings' in the form of PF for one reason or another; maybe they are justified in some cases. I wish employers shouldn't yield to the pressure whatsoever may be their reasoning.
But for beyond Rs. 6500/-, it is your/their choice. It should be avoided - any frequent lowering or hiking lest you will have confusion in administering them. Of course, in the worst-case scenario, they can avail refundable loans or part withdrawal to the extent possible, which can be facilitated on merit.
Secondly, having different norms for different categories is unwelcome and might lead to friction between the groups, inviting trouble for the HR. Even dual challan is also not required and to be avoided.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear all,
The EPF & MP Act is applied strictly up to the monthly basic + DA + food concession of Rs. 6,500/- and beyond that, it is at the discretion of the employer when a person joins beyond Rs. 6,500/- and does not have membership earlier elsewhere duly declared in Form 11. If a person who joined beyond Rs. 6,500/- per month and declares that he was a member of the scheme, you cannot ignore his membership and are bound to enroll him as a member at least up to the current ceiling limit, i.e., Rs. 6,500/-.
The implementation should not be based on designations.
Regards
From India, Delhi
Acknowledge(0)Amend(0)
The EPF & MP Act is applied strictly up to the monthly basic + DA + food concession of Rs. 6,500/- and beyond that, it is at the discretion of the employer when a person joins beyond Rs. 6,500/- and does not have membership earlier elsewhere duly declared in Form 11. If a person who joined beyond Rs. 6,500/- per month and declares that he was a member of the scheme, you cannot ignore his membership and are bound to enroll him as a member at least up to the current ceiling limit, i.e., Rs. 6,500/-.
The implementation should not be based on designations.
Regards
From India, Delhi
Acknowledge(0)Amend(0)
The range of Rs.6500/- is increased and now range is 15000/- this is for your information pl.
From India
Acknowledge(0)Amend(0)
From India
Acknowledge(0)Amend(0)
Dear All,
According to the EPF Act, there is no requirement of PF contribution where Salary=(basic+DA) exceeds 6,500 INR. However, in the case of employees whose salary exceeds 6,500 INR and where both the employee and employer are contributing to the fund:
According to industry practice, it is advisable to maintain consistency in terms of EPF contribution. The best approach I have observed in the industry is to compute PF based on Salary=(basic+DA), without restricting it to 6,500 INR itself.
Thanks,
Uma Sankar
From India, Chennai
Acknowledge(0)Amend(0)
According to the EPF Act, there is no requirement of PF contribution where Salary=(basic+DA) exceeds 6,500 INR. However, in the case of employees whose salary exceeds 6,500 INR and where both the employee and employer are contributing to the fund:
According to industry practice, it is advisable to maintain consistency in terms of EPF contribution. The best approach I have observed in the industry is to compute PF based on Salary=(basic+DA), without restricting it to 6,500 INR itself.
Thanks,
Uma Sankar
From India, Chennai
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.
HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls