Whereas you have received satisfactory clarification, I would like to add only one point. In the case of an existing employee whose basic+DA was less than Rs.6500/-PM and was eligible for PF, on getting an increment/promotion if his salary+DA increases more than Rs.6500/-PM the organization should deduct his PF upto Rs.6500/- and need to pay employer's contribution accordingly.
Dr K K Anirudhan
From India, Kochi
1Dr K K Anirudhan
From India, Kochi
Dear Ishwarsingh,
Rs. 659 is not merely 3.67%. For a salary of Rs. 10,000, employer contribution @ 12% will be Rs. 1,200. But EPS contribution is to be restricted at 8.33% of Rs. 6,500, i.e. Rs. 541.
The difference between total contribution - EPS contribution, i.e 1200 - 541 is 659.
Abbas.P.S
From India, Bangalore
Rs. 659 is not merely 3.67%. For a salary of Rs. 10,000, employer contribution @ 12% will be Rs. 1,200. But EPS contribution is to be restricted at 8.33% of Rs. 6,500, i.e. Rs. 541.
The difference between total contribution - EPS contribution, i.e 1200 - 541 is 659.
Abbas.P.S
From India, Bangalore
Subject: Re: EMPLOYEES PROVIDENT FUND - Still a lot of confusion
D.P.Jayakumar. Follow
Hi friends,
This is the correct legal position. If an employee is drawing a salary (Basic+DA) of more than Rs. 6500/- at the time of joining, he is an excluded employee and the question of bringing him within the PF act is voluntary with the mutual consent of both the employee and the employer willing to give their contributions. No mandatory compulsion; but if an employee at the time of joining draws a salary of less than Rs.6500/- (Basic+DA) and is a covered employee and subsequently due to salary revision draws a salary of more than Rs.6500/-(Basic+DA) he has to be compulsorily covered under PF upto Rs.6500/- and no choice to exclude him. Contribution on salary beyond Rs. 6500/- is purely voluntary with both the employee and the employer giving their consent for their respective contribution.
From India, Pondicherry
D.P.Jayakumar. Follow
Hi friends,
This is the correct legal position. If an employee is drawing a salary (Basic+DA) of more than Rs. 6500/- at the time of joining, he is an excluded employee and the question of bringing him within the PF act is voluntary with the mutual consent of both the employee and the employer willing to give their contributions. No mandatory compulsion; but if an employee at the time of joining draws a salary of less than Rs.6500/- (Basic+DA) and is a covered employee and subsequently due to salary revision draws a salary of more than Rs.6500/-(Basic+DA) he has to be compulsorily covered under PF upto Rs.6500/- and no choice to exclude him. Contribution on salary beyond Rs. 6500/- is purely voluntary with both the employee and the employer giving their consent for their respective contribution.
From India, Pondicherry
Dear Ashish,
u reproduce the sec.2 (b) by which it is very clear that on which components of wages/salary have been attracted, Overtime Wages are not covered for the contribution to PF And hence ur management and of course u have to stick up to ur decision not to pay contribution on OT. LET the PF authority take action and initiate inquiry u/s.7-A; when u could submit ur statement along with provisions therein.
Regards,
KIRAN KALE
From India, Kolhapur
u reproduce the sec.2 (b) by which it is very clear that on which components of wages/salary have been attracted, Overtime Wages are not covered for the contribution to PF And hence ur management and of course u have to stick up to ur decision not to pay contribution on OT. LET the PF authority take action and initiate inquiry u/s.7-A; when u could submit ur statement along with provisions therein.
Regards,
KIRAN KALE
From India, Kolhapur
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf