Hi,
PF contributions are as follows...
Employee contribution 12% of Basic+DA to EPF account.
Employer contribution would be 13.61% of Basic+DA diveded as
EPF Account 3.67%
EPS Account 8.33%(Max Rs.541)
EDLI Account 0.50%
PF Admin Charges 1.10%
EDLI Admin Charges 0.01%
If any employee salary is morethan Rs.6500 then employers contribution for EPS would be Rs.541 and rest amount will go to EPF account.
From India, Bangalore
44PF contributions are as follows...
Employee contribution 12% of Basic+DA to EPF account.
Employer contribution would be 13.61% of Basic+DA diveded as
EPF Account 3.67%
EPS Account 8.33%(Max Rs.541)
EDLI Account 0.50%
PF Admin Charges 1.10%
EDLI Admin Charges 0.01%
If any employee salary is morethan Rs.6500 then employers contribution for EPS would be Rs.541 and rest amount will go to EPF account.
From India, Bangalore
Hi I am Baisali working as Sr.IT Recruiter but now i am trying for generalist profile plz help me out .I dont mind working as fresher in generalist profile also.
From India, Hyderabad
From India, Hyderabad
Dear Sandeep,
I accept your views on pension scheme norms.But if employee doesn't have any EPF account earlier and if his salary is morethan Rs.6500 then its up to the employee he/she can go ahead with PF account or not.Employer can't insist to take the PF account.But it can't be vice versa.
In case employee doesn't opt for PF we have to take Form-11 from the employee.
Regards,
Keshav Reddy.
From India, Bangalore
I accept your views on pension scheme norms.But if employee doesn't have any EPF account earlier and if his salary is morethan Rs.6500 then its up to the employee he/she can go ahead with PF account or not.Employer can't insist to take the PF account.But it can't be vice versa.
In case employee doesn't opt for PF we have to take Form-11 from the employee.
Regards,
Keshav Reddy.
From India, Bangalore
Dear Sajid Ansari I think now PF is applicable for an organization if it has minimum 10 employees instead of 20. Am I wrong ? Pl suggest. Subrata
From India, Calcutta
From India, Calcutta
Hi All,
Let me clear the Law Position.
If an employee' s basic is more than RS. 6500/- p.m. and he has no previous subsisiting membership then he is an excluded employee as defined under para 2(f) of the EPF Act, 1952 in this eventuality the employer has descretion to grant PF membership.
If an employee's having previous membership subsisiting and present basic is more than RS. 6500/- p.m. then he shall have to enrolled as PF subscriber subject to restriction of employer's contribution to RS. 780/- p.m. but no such restriction on member to contribute at higher rate of entire basic +DA aggregating more than RS. 6500/-p.m.
From India, Mumbai
Let me clear the Law Position.
If an employee' s basic is more than RS. 6500/- p.m. and he has no previous subsisiting membership then he is an excluded employee as defined under para 2(f) of the EPF Act, 1952 in this eventuality the employer has descretion to grant PF membership.
If an employee's having previous membership subsisiting and present basic is more than RS. 6500/- p.m. then he shall have to enrolled as PF subscriber subject to restriction of employer's contribution to RS. 780/- p.m. but no such restriction on member to contribute at higher rate of entire basic +DA aggregating more than RS. 6500/-p.m.
From India, Mumbai
[QUOTE=pppathak;745598]Hi All,
Let me clear the Law Position.
If an employee' s basic is more than RS. 6500/- p.m. and he has no previous subsisiting membership then he is an excluded employee as defined under para 2(f) of the EPF Act, 1952 in this eventuality the employer has descretion to grant PF membership.
If an employee's having previous membership subsisiting and present basic is more than RS. 6500/- p.m. then he shall have to enrolled as PF subscriber subject to restriction of employer's contribution to RS. 780/- p.m. but no such restriction on member to contribute at higher rate of entire basic +DA aggregating more than RS. 6500/-p.m.
From India, Mumbai
Let me clear the Law Position.
If an employee' s basic is more than RS. 6500/- p.m. and he has no previous subsisiting membership then he is an excluded employee as defined under para 2(f) of the EPF Act, 1952 in this eventuality the employer has descretion to grant PF membership.
If an employee's having previous membership subsisiting and present basic is more than RS. 6500/- p.m. then he shall have to enrolled as PF subscriber subject to restriction of employer's contribution to RS. 780/- p.m. but no such restriction on member to contribute at higher rate of entire basic +DA aggregating more than RS. 6500/-p.m.
From India, Mumbai
WHO IS ELIGIBLE TO BECOME A PF MEMBER?
All employees, employed in an establishment (includes employees employed through contractors, daily rated, piece rated, temporary, casual etc.).
“Excluded employees” need not be enrolled as PF member
Excluded employees are –
a) Apprentice
b) Employee drawing the wages (Basic+ DA only) beyond Rs.6500/- as on the date of joining the Establishment. (If the ‘wages’ of an employee is increased beyond Rs.6500 during the course of employment and after becoming a member of Employees’ Provident Fund, such employees are not to be treated as excluded employees. In such cases his contribution shall be restricted to his wages upto Rs.6500/-.)
c) Employees whose Employees’ Provident Fund Accounts were once fully settled after attaining 55 years of Age or on permanent settlement abroad.
Employees drawing wages beyond Rs.6500/- can also become a member of the Fund, if the employer and employee give a ‘joint declaration’ to the Regional Provident Fund Commissioner.
An employee at the time of joining an establishment should declare his previous Provident Fund Account Number/membership details to his present employer for communication to the Commissioner.
All employees should be enrolled as a Provident Fund member from the date of joining the establishment/factory.
From India, Madras
All employees, employed in an establishment (includes employees employed through contractors, daily rated, piece rated, temporary, casual etc.).
“Excluded employees” need not be enrolled as PF member
Excluded employees are –
a) Apprentice
b) Employee drawing the wages (Basic+ DA only) beyond Rs.6500/- as on the date of joining the Establishment. (If the ‘wages’ of an employee is increased beyond Rs.6500 during the course of employment and after becoming a member of Employees’ Provident Fund, such employees are not to be treated as excluded employees. In such cases his contribution shall be restricted to his wages upto Rs.6500/-.)
c) Employees whose Employees’ Provident Fund Accounts were once fully settled after attaining 55 years of Age or on permanent settlement abroad.
Employees drawing wages beyond Rs.6500/- can also become a member of the Fund, if the employer and employee give a ‘joint declaration’ to the Regional Provident Fund Commissioner.
An employee at the time of joining an establishment should declare his previous Provident Fund Account Number/membership details to his present employer for communication to the Commissioner.
All employees should be enrolled as a Provident Fund member from the date of joining the establishment/factory.
From India, Madras
(1) The Rate of contributions payable under the three Schemes (with effect from 22-9-97.) are as under:-
Contribution is determined with reference to the percentage of wages (Basic + DA) of each member.
Name of the Scheme Employees’ share Employers’ share
Employee's’ Provident Funds Scheme, 1952 12 % * 3.67 %
(amount in excess of 8.33%)
(i.e 12% - 8.33%)
Employees’ Pension Scheme,1995 NIL 8.33 %
(No separate recovery. Diverted from & out of Provident Fund Contributions only)
Employees’ Deposit Linked Insurance Scheme,1976 NIL
0.5%
* 10 % In case of certain establishments(Jute, Beedi, Bricks, Coir industry, Gaur gum industries etc.) and also to any establishment which employ less than 20 persons.
From India, Madras
Contribution is determined with reference to the percentage of wages (Basic + DA) of each member.
Name of the Scheme Employees’ share Employers’ share
Employee's’ Provident Funds Scheme, 1952 12 % * 3.67 %
(amount in excess of 8.33%)
(i.e 12% - 8.33%)
Employees’ Pension Scheme,1995 NIL 8.33 %
(No separate recovery. Diverted from & out of Provident Fund Contributions only)
Employees’ Deposit Linked Insurance Scheme,1976 NIL
0.5%
* 10 % In case of certain establishments(Jute, Beedi, Bricks, Coir industry, Gaur gum industries etc.) and also to any establishment which employ less than 20 persons.
From India, Madras
(2) Example: Method of calculating Provident Fund Contribution from the Monthly salary.
Employees’ Salary =
Basic DA HRA City Conveyance Total
wages allowance etc.
4000 2000 500 100 200 6900
Attracts PF Deduction PF not to be deducted.
i.e.: Rs.6000/- @ 12% = Rs.720/-
Matching share payable by Rs.720/- Out of this, 8.33% Employer. of ‘wages’ is diverted to Pension Fund (i.e.)
Rs.500/- Balance
Rs.220/- will go to
Employer’s share of
Provident Fund.
The employer is also required to pay “Administrative Charges’ to the Employees’ Provident Fund Organisation for maintenance of Provident Fund account etc. i.e. @1.10% of wages of each employee under EPF and @ 0.01% under EDLI scheme. Thus, in this case, the EPF dues payable by member and employer are as under:-
Share
Wages
(Basic+DA)
Rs. Contribution Admn. Charges
Provident
Fund Rs. Pension
Fund Rs. Insurance
Fund Rs. PF
Rs. EDLI
Rs.
Employee’s 6000 720 --- --- --- ---
Employer’s --- 220
(720-500) 500 30 66 2
(Minimum)
Total 940
(EPF Scheme, 1952) 500
(Pension Scheme,1995) 30
(EDLI Scheme, 76) 66 2
In the Annual Provident Fund Statement, the EPF Contribution alone is shown i.e. @ Rs.720/- p.m. as Employee’s share and Rs.220/- as Employer’s share, calculated for 12 months (subject to wages remaining same for the whole year), as current year contribution. ‘Year’ means, commencing from the wage month March to February of the following year. No Provident Fund contribution will be deducted on the following:-
Over Time Allowance/Bonus/Commission/Lay Off Compensation/
Medical Allowance/Conveyance Allowance/House Rent Allowance/
City Compensatory Allowance/Cash Allowance/Honorarium/ Washing /Shoe Allowance
From India, Madras
Employees’ Salary =
Basic DA HRA City Conveyance Total
wages allowance etc.
4000 2000 500 100 200 6900
Attracts PF Deduction PF not to be deducted.
i.e.: Rs.6000/- @ 12% = Rs.720/-
Matching share payable by Rs.720/- Out of this, 8.33% Employer. of ‘wages’ is diverted to Pension Fund (i.e.)
Rs.500/- Balance
Rs.220/- will go to
Employer’s share of
Provident Fund.
The employer is also required to pay “Administrative Charges’ to the Employees’ Provident Fund Organisation for maintenance of Provident Fund account etc. i.e. @1.10% of wages of each employee under EPF and @ 0.01% under EDLI scheme. Thus, in this case, the EPF dues payable by member and employer are as under:-
Share
Wages
(Basic+DA)
Rs. Contribution Admn. Charges
Provident
Fund Rs. Pension
Fund Rs. Insurance
Fund Rs. PF
Rs. EDLI
Rs.
Employee’s 6000 720 --- --- --- ---
Employer’s --- 220
(720-500) 500 30 66 2
(Minimum)
Total 940
(EPF Scheme, 1952) 500
(Pension Scheme,1995) 30
(EDLI Scheme, 76) 66 2
In the Annual Provident Fund Statement, the EPF Contribution alone is shown i.e. @ Rs.720/- p.m. as Employee’s share and Rs.220/- as Employer’s share, calculated for 12 months (subject to wages remaining same for the whole year), as current year contribution. ‘Year’ means, commencing from the wage month March to February of the following year. No Provident Fund contribution will be deducted on the following:-
Over Time Allowance/Bonus/Commission/Lay Off Compensation/
Medical Allowance/Conveyance Allowance/House Rent Allowance/
City Compensatory Allowance/Cash Allowance/Honorarium/ Washing /Shoe Allowance
From India, Madras
Hi,
if Basic + DA is more than 6500/- then the recovery of PF is purely at the option of employee. Here, employee can opt for total waiver of PF contribution (or) opt for recovery of minimum PF (780/-) only (or) can opt for recovery of PF on total Basic + DA.
However, there need to be a clear declaration from the concerend employee.
From India, Hyderabad
if Basic + DA is more than 6500/- then the recovery of PF is purely at the option of employee. Here, employee can opt for total waiver of PF contribution (or) opt for recovery of minimum PF (780/-) only (or) can opt for recovery of PF on total Basic + DA.
However, there need to be a clear declaration from the concerend employee.
From India, Hyderabad
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