Hello! Can anyone tell me whether PF has to be calculated on gross or basic now??? Earlier it was basic and later it was changed to gross but will they spare if we don't calculate on gross but basic??? I have joined in one organisation recently. Can you please guide me! Urgent! I heard that some were paying on basic only even now without any problem. Is it true???
From India, Guntur
From India, Guntur
PF need to be paid only on basic + DA. No other components will be added for the contributions of EPF unless the employee request it. So total amount of 12% from basic pay of employee side and 13.65% (12% + EDLI and other admin charges) from company side will go for epf contributions for every employee.
If an employee's basic salary is less than 15k, it is compulsory to deduct the EPF.
ESIC will be deducted on the gross wages.
From India, Chennai
148If an employee's basic salary is less than 15k, it is compulsory to deduct the EPF.
ESIC will be deducted on the gross wages.
From India, Chennai
Hello! Thank you for the response. But there's a rule that PF has to be paid on gross but some of them are not paying it on gross but they're paying on basic which means violation of the rule. I also heard that those who are paying on basic (after passing the rule to pay on gross) will have to pay penalty for all the period they are paying on basic in future.
From India, Guntur
From India, Guntur
PF will be calculated on Basic + DA not on Gross till date.
A/C 1 (Provident Fund Employee's Contribution @ 12%)
A/C 1 (Provident Fund Employer's contribution @ 3.67%)
A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Employer , Please check the A/C 2 and 22 for minimum limit.
From India, Kolkata
A/C 1 (Provident Fund Employee's Contribution @ 12%)
A/C 1 (Provident Fund Employer's contribution @ 3.67%)
A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Employer , Please check the A/C 2 and 22 for minimum limit.
From India, Kolkata
Dear Naina, Kindly find attached the circular from the PF department, where it is clear that the PF is on Basic + DA and nothing else. Regards, Ashutosh Thakre
From India, Mumbai
From India, Mumbai
PF will be calculated on Basic + DA not on Gross till date.
A/C 1 (Provident Fund Employee's Contribution @ 12%)
A/C 1 (Provident Fund Employer's contribution @ 3.36%)
A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Employer , Please check the A/C 2 and 22 for minimum limit
Regards
Govind
9555046934
From India, Delhi
A/C 1 (Provident Fund Employee's Contribution @ 12%)
A/C 1 (Provident Fund Employer's contribution @ 3.36%)
A/C 2 (Administration Charges @ 0.85% or (minimum) Rs.500/- whichever is more)
A/C 10 (Pension Fund Employer's Contribution @ 8.33%)
A/C 21 (Employee's Deposit Linked Insurance Employer's Contribution @ 0.50%)
A/C 22 (Administration Charges @ 0.01% or (minimum) Rs.200/- whichever is more)
Employer , Please check the A/C 2 and 22 for minimum limit
Regards
Govind
9555046934
From India, Delhi
PF Contribution is 12% of Basic + DA for all cases. There is a Circular of the PF Dept. stating that if the Basic + DA is below Minimum Wages for that state, then PF should be 12% on Minimum Wages for that state. This circular has been challenged and cases are pending in some courts. The IT Dept. itself is not pursuing the implementation of this circular excepting for reminding everyone that this will be implemented with immediate effect. If the Basic + DA exceeds Rs. 15000 per month at the time of starting an employment in a covered establishment by an employee who does not have an active PF number, then the employee may enrolled if he/she so requests in writing, in which case the PF calculation can be on Rs. 15000 or the actual Basic + DA as mutually agreed by the employee and employer.
From India, Kolkata
From India, Kolkata
Thank you all. But our establishment received mails from PF office stating that the payment should be on the gross hereafter. So they started paying on gross and now we have no other option but to continue, so when we approached PF office they told us that it is rule to pay on gross so no need to worry. Which is correct then????? Please clarify.
From India, Guntur
From India, Guntur
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls