Dear All, I have need one suggestion from you. In our company one employee requested us to deduct PF as per PF deduction limit i.e. 15000/- instead of his Basic salary i.e. Rs. 45000/- (currently we deducted his PF on Rs. 45000/- i.e. Rs.45000*12% = Rs. 5400/-) Please reply. Can PF allow us to do deduction of PF as per PF deduction limit i.e. Rs. 15000/- for only one employee.
Dear Anony,
PF deduction can be either on the ceiling limit i.e 15000 pm or 12% of basic in case the basic is higher than the ceiling limit. Yes, you can go ahead and do the contribution at the rate of 12% of his basic salary.
Those companies who restrict the PF contribution to ceiling limit do so as to save on the admin charges on PF.
Regards
Rahul
From India, Delhi
152PF deduction can be either on the ceiling limit i.e 15000 pm or 12% of basic in case the basic is higher than the ceiling limit. Yes, you can go ahead and do the contribution at the rate of 12% of his basic salary.
Those companies who restrict the PF contribution to ceiling limit do so as to save on the admin charges on PF.
Regards
Rahul
From India, Delhi
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls