Hi all,Can anyone tell me, is there any provisions where by employee can contribute only 780(i.e if basic is 6500)even though the basic is more than 6500???Or id it compulsory dat he should contribute 12% of his basic+DA???Cheers,Divya
From India, Ahmadabad
From India, Ahmadabad
As per the latest laws in effect, an employee needs to contribute 12% of his PF Basic as PF contribution.
The employer needs to contribute 12% of the PF Basic to the employee's account.
The rate is generally published by the government. 12% is mandatory.
Thanks
Nivya
From India, Madras
The employer needs to contribute 12% of the PF Basic to the employee's account.
The rate is generally published by the government. 12% is mandatory.
Thanks
Nivya
From India, Madras
Dear Divya,
PF is not calculated with Gross salary. It is calculated with the Basic component of the salary.i.e. a salary consists of Basic, HRA, other allowances, Conveyance etc as components. In this the Basic alone is taken and 12% of that is calculated as PF.
In your friend's case, Rs. 12500 should be his gross salary out of which Rs. 6500 should be his Basic. From this 12% would be Rs. 780 which is deducted as Employee PF.
Thanks
Nivya
From India, Madras
PF is not calculated with Gross salary. It is calculated with the Basic component of the salary.i.e. a salary consists of Basic, HRA, other allowances, Conveyance etc as components. In this the Basic alone is taken and 12% of that is calculated as PF.
In your friend's case, Rs. 12500 should be his gross salary out of which Rs. 6500 should be his Basic. From this 12% would be Rs. 780 which is deducted as Employee PF.
Thanks
Nivya
From India, Madras
Dear Divya,
As per policy compulsary contribution is 12% of 6500/- after that its voluntary contribution so many org. only deposit the compulsary contribution i.e 780/- only.
So there is no issue if your frend's pf deduction is only 780/-.
Regards,
Shilpi
From India, New Delhi
As per policy compulsary contribution is 12% of 6500/- after that its voluntary contribution so many org. only deposit the compulsary contribution i.e 780/- only.
So there is no issue if your frend's pf deduction is only 780/-.
Regards,
Shilpi
From India, New Delhi
Hai ,As per the rules the Employee should contribute 12% on actual Basic+ DA drawn not on 6500 .... as u asked 780 ie 12% of 6500 this is an option left to the employeer he can or need not but if he is contrubting he should contribute minimum 780 ie 12% of B+DA but 1.61% administration charges is on actual basic + DA contrubited from the employer
From India, Bangalore
From India, Bangalore
Hi,
Thanks all.My friend's basic+DA is 12500 and not the gross.Everyone has posted different replies.Can anyone pls tell me what is as per the law?Is it as per the law that if the employer wishes he can choose to deduct only the min required amount(780)no matter what the actual basic is???
Cheers,
Divya
From India, Ahmadabad
Thanks all.My friend's basic+DA is 12500 and not the gross.Everyone has posted different replies.Can anyone pls tell me what is as per the law?Is it as per the law that if the employer wishes he can choose to deduct only the min required amount(780)no matter what the actual basic is???
Cheers,
Divya
From India, Ahmadabad
Divya, Minimum limit is 780 but its upto the employee if he want to opt for more than 780 (i.e on actuals), that can be done upto any value.
From India, New Delhi
From India, New Delhi
Hi divya,
PF act says that you have to deduct 12% of basic +DA if the same is less than 6500 and if it is equal to or more than 6500, we have to deposit 780as PF.
Further, can anybody advice me the amount of voluntary contribution that an employee can do to his own PF account? does that has any limit.
Rgds
Manjali
From India, Delhi
PF act says that you have to deduct 12% of basic +DA if the same is less than 6500 and if it is equal to or more than 6500, we have to deposit 780as PF.
Further, can anybody advice me the amount of voluntary contribution that an employee can do to his own PF account? does that has any limit.
Rgds
Manjali
From India, Delhi
Hi,
This is regarding renewal of labour licence under central government act (ours is Aviation industry). Initially when we applied for licence total employees 65 and all are engineers and managers. But, now total employees only 15, licence renewal date is in December, please tell me, still do we need to go for renewal of licence ?
Regards
Sivaprasad M
From India, Hyderabad
This is regarding renewal of labour licence under central government act (ours is Aviation industry). Initially when we applied for licence total employees 65 and all are engineers and managers. But, now total employees only 15, licence renewal date is in December, please tell me, still do we need to go for renewal of licence ?
Regards
Sivaprasad M
From India, Hyderabad
Hi Divya,
The PF contribution is 12% of Basic pay if thier basic is less than 6500. If the employees cross 6500 (any increment), the contribution can be limited to 12% of 6500 (whatever the basic pay may be) ie 780. But if the employee wish he can contribute more.
Hope u got the solution.
Sathish
From India, Mumbai
The PF contribution is 12% of Basic pay if thier basic is less than 6500. If the employees cross 6500 (any increment), the contribution can be limited to 12% of 6500 (whatever the basic pay may be) ie 780. But if the employee wish he can contribute more.
Hope u got the solution.
Sathish
From India, Mumbai
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