Hi,
I would like to know what would be the employer contribution towards PF if the basic of an employee is Rs.10000/-. Is it 12% of 10000/-???
I heard that the organisation is liable to contribute towards PF only a maximum of 12% of Rs.7500/-??
I also want to know if the emplyee does not wish to contribute for PF whose basic is more than Rs.7500/-, is it mandatory by the employer to contribute towards PF for the particular employee?
Kindly clarify.
From India, New Delhi
32I would like to know what would be the employer contribution towards PF if the basic of an employee is Rs.10000/-. Is it 12% of 10000/-???
I heard that the organisation is liable to contribute towards PF only a maximum of 12% of Rs.7500/-??
I also want to know if the emplyee does not wish to contribute for PF whose basic is more than Rs.7500/-, is it mandatory by the employer to contribute towards PF for the particular employee?
Kindly clarify.
From India, New Delhi
Hi!!!
Regarding PF, if the employee basic wages exceeding Rs.6500/-, there is
no liability on the part of employer to pay PF contribution.
If employee joined with less than above basic, continuing service with
more than the basic of Rs.6500/- , employer bound to pay PF contribution
on the Rs.6500/- only (.i.e.Rs.780/-),eventhough his basic salary more
than that.
Hope get clarification on the same.
Satish Raz
From Germany
Regarding PF, if the employee basic wages exceeding Rs.6500/-, there is
no liability on the part of employer to pay PF contribution.
If employee joined with less than above basic, continuing service with
more than the basic of Rs.6500/- , employer bound to pay PF contribution
on the Rs.6500/- only (.i.e.Rs.780/-),eventhough his basic salary more
than that.
Hope get clarification on the same.
Satish Raz
From Germany
Hi Prathima, ceiling was 3500/- upto 01.10.94, then revised to 5000/-. Then it revaised to 6500/- from 01.04.1995. and remains same, further there is no amendment. Satish
From Germany
From Germany
and IF employee want to contribute 12% on whole 10,000 then employer has to contribute 12% on whole 10,000
From India, Pune
From India, Pune
Hi,I have a doubt reg contribution to PF.My doubts are:1) Is it mandatory on the part of the employer to deduct PF of Rs. 780/- (12% on Rs. 6500[ceiling amount]), from the salary payable to the Employee, even if the BASIC+DA of exceeds Rs. 6500-/.2) Is it mandatory on the part of the employer to contribute Rs. 884.65 (13.61% of Rs. 6500[ceiling amount]) to the PF Fund, even if the BASIC+DA of the employee exceeds Rs. 6500/-Pls clarify my doubts.Regards Saravana
From India, Bangalore
From India, Bangalore
Dear,
As the Law goes, PF has to be deducted @ 12% on Basic+DA subject to a maximum Basic & DA of 6500 if they are submitting the amount with RPFC. But if a company manages its PF through a trust then it can contribute towards PF at the actual Basic+DA, i.e even if it is more than 6500.
Regards,
Nilendra
As the Law goes, PF has to be deducted @ 12% on Basic+DA subject to a maximum Basic & DA of 6500 if they are submitting the amount with RPFC. But if a company manages its PF through a trust then it can contribute towards PF at the actual Basic+DA, i.e even if it is more than 6500.
Regards,
Nilendra
Hi,
As per the PF act employer has to contribute 12% as well as employee has to contribute 12% of his (Basic+DA) towards PF. I want to know from that 12% there is a break up of 8.33 % and 3.67%. Towards what does the 8.33 % and 3.67 % go to?
As per the PF act employer has to contribute 12% as well as employee has to contribute 12% of his (Basic+DA) towards PF. I want to know from that 12% there is a break up of 8.33 % and 3.67%. Towards what does the 8.33 % and 3.67 % go to?
Hi Aditi,
Following are the different Heads of the Provident Fund Account, where the money goes.......
Account No1 (PF) ................................. 12% (of Employee Cont. on Basic+D.A.) + [ (12% of employer's Cont.)- (3.67% or 541.00, which ever is minimum) ]
Account No.2 (Admn charges on PF) .......... 1.1 %
Account No.10 (Pension Fund) .................. 8.33% (Subject to Maximum of Rs. 541.00, Limit being Rs.6500.00)
Account No. 21 (EDLI Charges) ................ 0.5 %
Account No. 22 (Admn. charge on EDLI) ...... 0.01%
From India, Delhi
Following are the different Heads of the Provident Fund Account, where the money goes.......
Account No1 (PF) ................................. 12% (of Employee Cont. on Basic+D.A.) + [ (12% of employer's Cont.)- (3.67% or 541.00, which ever is minimum) ]
Account No.2 (Admn charges on PF) .......... 1.1 %
Account No.10 (Pension Fund) .................. 8.33% (Subject to Maximum of Rs. 541.00, Limit being Rs.6500.00)
Account No. 21 (EDLI Charges) ................ 0.5 %
Account No. 22 (Admn. charge on EDLI) ...... 0.01%
From India, Delhi
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