but he/she recently joined with you and previous employment of he/she member of PF so, we have to deduct and contribute PF.
From India, Ahmedabad
From India, Ahmedabad
There are two ways to give PF on Rs 50000, i.e., on the basic and DA without restricting the PF qualifying salary to Rs 15000. Another way is to pay it only on Rs 15000. For that, you have to provide one more column in the payroll sheet for "PF Qualifying salary" in which you can put 15000, which will ultimately be used to calculate the PF contribution.
Nowhere in the PF Act is it stated that you should not pay contribution on salary above Rs 15000, and most of the good companies follow the practice of paying it on higher salary. The only limitation is that the pension fund contribution of 8.33% by the employer is restricted to 8.33% of 15000.
From India, Kannur
Nowhere in the PF Act is it stated that you should not pay contribution on salary above Rs 15000, and most of the good companies follow the practice of paying it on higher salary. The only limitation is that the pension fund contribution of 8.33% by the employer is restricted to 8.33% of 15000.
From India, Kannur
Dear Mr. Madhu,
Further to the above discussion, I request your advice on the case below:
Employees' Gross wages: Rs. 42,000/- (Basic + Special Allowance + Mobile Allowance)
EPF Wages: Rs. 15,000/- (as per ceiling limit)
What should be filled in Column C - Gross Wages in ECR XL?
a) Rs. 42,000/- i.e. actual GROSS WAGES?
OR
b) Rs. 15,000/- as per ceiling limit.
Also, how are the PF Admin Charges calculated?
Please refer to the example below:
NAME GROSS WAGES EPF WAGES EPS WAGES EDLI WAGES EPF CONTRI REMITTED
Mr. A 42,000 15,000 15,000 15,000 1,800
Mr. B 30,000 15,000 15,000 15,000 1,800
Mr. C 24,000 15,000 15,000 15,000 1,800
Mr. D 18,000 15,000 15,000 15,000 1,800
Kindly help and advise.
Regards,
Shylaja
From India, Bangalore
Further to the above discussion, I request your advice on the case below:
Employees' Gross wages: Rs. 42,000/- (Basic + Special Allowance + Mobile Allowance)
EPF Wages: Rs. 15,000/- (as per ceiling limit)
What should be filled in Column C - Gross Wages in ECR XL?
a) Rs. 42,000/- i.e. actual GROSS WAGES?
OR
b) Rs. 15,000/- as per ceiling limit.
Also, how are the PF Admin Charges calculated?
Please refer to the example below:
NAME GROSS WAGES EPF WAGES EPS WAGES EDLI WAGES EPF CONTRI REMITTED
Mr. A 42,000 15,000 15,000 15,000 1,800
Mr. B 30,000 15,000 15,000 15,000 1,800
Mr. C 24,000 15,000 15,000 15,000 1,800
Mr. D 18,000 15,000 15,000 15,000 1,800
Kindly help and advise.
Regards,
Shylaja
From India, Bangalore
If you contribute based on the actual salary without restricting it to Rs 15,000, you can input Rs 42,000 in PF Salary. I don't know what you mean by Col C), and in such cases, the PF contribution would be 12% of Rs 42,000, which is Rs 5,040. The employer's contribution to the Pension Fund will be 8.33% of PF Rs 15,000 (until a final decision is made and the system is adjusted accordingly by EPFO), which amounts to Rs 1,250. The employer's contribution to PF will be Rs 3,790 (Rs 5,040 - Rs 1,250), and EDLI will be 0.5% of Rs 15,000, equal to Rs 75.
On the other hand, if your policy is to restrict the contribution to 12% of Rs 15,000, the breakdown would be as follows: the employee's share to PF would be Rs 1,800, the contribution to the Pension Fund would be Rs 1,250, the employer's share to PF would be Rs 550, and EDLI would remain at Rs 75.
From India, Kannur
On the other hand, if your policy is to restrict the contribution to 12% of Rs 15,000, the breakdown would be as follows: the employee's share to PF would be Rs 1,800, the contribution to the Pension Fund would be Rs 1,250, the employer's share to PF would be Rs 550, and EDLI would remain at Rs 75.
From India, Kannur
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