Dear All,
I need help from yours in regard to some clarifications on Provident Fund:
1) For PF deduction the ceiling basic salary limit is 6500/-. If basic of a member employee increases beyond Rs. 6500' after his having become a member, Is it mandatory to continue or can stop the contribution in PF?
2) On hiring if basic is already more than 6500/- do we need to contribute in PF as mandatory?
3) Are any companies are there who are not contributing because the basic is more than 6500/-?
Kindly help me in getting my queries resolved.
Thanks & Regards
Shilpi
From India, New Delhi
4I need help from yours in regard to some clarifications on Provident Fund:
1) For PF deduction the ceiling basic salary limit is 6500/-. If basic of a member employee increases beyond Rs. 6500' after his having become a member, Is it mandatory to continue or can stop the contribution in PF?
2) On hiring if basic is already more than 6500/- do we need to contribute in PF as mandatory?
3) Are any companies are there who are not contributing because the basic is more than 6500/-?
Kindly help me in getting my queries resolved.
Thanks & Regards
Shilpi
From India, New Delhi
Dear Shilpi,
1.If Any employees jumps to cross the limit of PF Ceiling his PF should be deducted up to cieling limit (6500) but definately to be deducted being he is already a member of PF and can't cease to be until leaves the organisation.
2. In case of a new member it depends whether he is declaring his past association with other companies on form no. 11 or not. IF was getting his PF deducted their it will be deducted in new company and if not it may not be deducted. PF inspectors hold the power to cross verify these form 11 in case of non contribution of employees. It is really not mendatory in case of a fresher who is getting basic more than 6500.
3. YEs definately there a lot of companies which are not deducting the PF of said employees.
Hope it serves your purpose.
Regards,
Rahul
From India, Delhi
1.If Any employees jumps to cross the limit of PF Ceiling his PF should be deducted up to cieling limit (6500) but definately to be deducted being he is already a member of PF and can't cease to be until leaves the organisation.
2. In case of a new member it depends whether he is declaring his past association with other companies on form no. 11 or not. IF was getting his PF deducted their it will be deducted in new company and if not it may not be deducted. PF inspectors hold the power to cross verify these form 11 in case of non contribution of employees. It is really not mendatory in case of a fresher who is getting basic more than 6500.
3. YEs definately there a lot of companies which are not deducting the PF of said employees.
Hope it serves your purpose.
Regards,
Rahul
From India, Delhi
Ms. SHILPI,
PF MUST BE DEDUCTED in all criteria mentioned by you.... within limit or above limit, company must have to deduct the p.f. from salary[basic+d.a.].
if you are deducting pf, whose basic salary is above 6500/- you will have to get fill up form- 26(6) with employee's consent and with company's undertaking.
Vishal - 9825224504
From India, Vadodara
PF MUST BE DEDUCTED in all criteria mentioned by you.... within limit or above limit, company must have to deduct the p.f. from salary[basic+d.a.].
if you are deducting pf, whose basic salary is above 6500/- you will have to get fill up form- 26(6) with employee's consent and with company's undertaking.
Vishal - 9825224504
From India, Vadodara
Shilpi,
1) If the employee's basic increases beyond Rs.6500/- then the employer have to contribute the minimum amount of Rs.780/-. It is mandatory.
2) On hiring if the basic exceeds 6500/- the PF amount of 780/- has to be deducted if he is aleady a member of PF. Else not required.
3) If the employee joins in the consultant mode then PF does not have to be deducted.
From India, New Delhi
1) If the employee's basic increases beyond Rs.6500/- then the employer have to contribute the minimum amount of Rs.780/-. It is mandatory.
2) On hiring if the basic exceeds 6500/- the PF amount of 780/- has to be deducted if he is aleady a member of PF. Else not required.
3) If the employee joins in the consultant mode then PF does not have to be deducted.
From India, New Delhi
Thanks everyone. Currently we are contributing PF for all employees @12% of basic but we are planning that for junior management we should stop this practice as they cry for more money in hand. Now with all your replies it seems that we have to continue their PF contribution as they are already a member but we can go ahead with only 780/- as contribution. Right? Please confirm.
From India, New Delhi
From India, New Delhi
Exactly Shilpi, Since you have already been deducting PF you cannot stop contributing now.
From India, New Delhi
From India, New Delhi
its again..... so far where i have worked has been contributing on 12% of basic even if the basic exceeds more than 6500/-. You can follow the same procedure if u want to. That is purly what u decide on.
From India, New Delhi
From India, New Delhi
:-PHi Members, Pl. throw some more on these lines (Shilpi’s query). It will be useful to all. regards, Uniquenaga:icon1::icon1::icon1:
From India, Madras
From India, Madras
It has been discussed in detail about the query raised by shilpi.. if u r looking for more information then be specific on what u want details.
From India, New Delhi
From India, New Delhi
Dear Shilpi,
It is entirely depends upon the company's policy, that on how much the Principal employer like to contributes towards the PF contribution, can be 12% of the maximum limit of Rs.6500.00 or it can be without any limitations.
Normally the company is depositing flat 12% towards the PF contribution, irrespective of the limitation of Rs.6500.00 nowadays.
Reason for that is as most of the Company has already calculated that amount into the CTC of the employee at the time of salary negotiation.
For e.g. if CTC is Rs.50000.00 per month and the basic is Rs.20000.00 than PF contribution of employee as well as the employer's are included in the CTC (which is Rs. 2400.00 for each @12% of 20000.00), so an amount of Rs.4800.00 is already included the CTC of Rs. 50000.00.
From India, Delhi
It is entirely depends upon the company's policy, that on how much the Principal employer like to contributes towards the PF contribution, can be 12% of the maximum limit of Rs.6500.00 or it can be without any limitations.
Normally the company is depositing flat 12% towards the PF contribution, irrespective of the limitation of Rs.6500.00 nowadays.
Reason for that is as most of the Company has already calculated that amount into the CTC of the employee at the time of salary negotiation.
For e.g. if CTC is Rs.50000.00 per month and the basic is Rs.20000.00 than PF contribution of employee as well as the employer's are included in the CTC (which is Rs. 2400.00 for each @12% of 20000.00), so an amount of Rs.4800.00 is already included the CTC of Rs. 50000.00.
From India, Delhi
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SC Judgment-No obligation to excess contribution than Statutory Limit.docx
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