Query Regarding PF Admin Charges:
Case – Employee basic is 10000/- per month. Company depositing PF on the PF ceiling 6500/- on employer & employee share. But employee wants to add voluntary PF contribution 12% on his actual basic i.e. 10000/- per month. So now admin charges will be applicable on PF Basic ceiling 6500/- or actual basic 10000/- P.F Inspector is enforcing admin charges will be applicable on actual basic i.e. 10000/- not in 6500/-. Please give clarity about the query, written evidence will be appreciated.
Reg
Mahender Singh
From India, Faridabad
1Case – Employee basic is 10000/- per month. Company depositing PF on the PF ceiling 6500/- on employer & employee share. But employee wants to add voluntary PF contribution 12% on his actual basic i.e. 10000/- per month. So now admin charges will be applicable on PF Basic ceiling 6500/- or actual basic 10000/- P.F Inspector is enforcing admin charges will be applicable on actual basic i.e. 10000/- not in 6500/-. Please give clarity about the query, written evidence will be appreciated.
Reg
Mahender Singh
From India, Faridabad
Admin charge is paid from the Employer’s contribution so i think what you are doing is right.
From India, Pune
From India, Pune
[QUOTE=Mahaender Siingh;1822000]Query Regarding PF Admin Charges:
Case – Employee basic is 10000/- per month. Company depositing PF on the PF ceiling 6500/- on employer & employee share. But employee wants to add voluntary PF contribution 12% on his actual basic i.e. 10000/- per month. So now admin charges will be applicable on PF Basic ceiling 6500/- or actual basic 10000/- P.F Inspector is enforcing admin charges will be applicable on actual basic i.e. 10000/- not in 6500/-. Please give clarity about the query, written evidence will be appreciated.
Reg
Mahender Singh[/QUOTE
Dear PF INSP. is absolutly right it will be applicable on 10000 / (actual basic)
From India, Delhi
Case – Employee basic is 10000/- per month. Company depositing PF on the PF ceiling 6500/- on employer & employee share. But employee wants to add voluntary PF contribution 12% on his actual basic i.e. 10000/- per month. So now admin charges will be applicable on PF Basic ceiling 6500/- or actual basic 10000/- P.F Inspector is enforcing admin charges will be applicable on actual basic i.e. 10000/- not in 6500/-. Please give clarity about the query, written evidence will be appreciated.
Reg
Mahender Singh[/QUOTE
Dear PF INSP. is absolutly right it will be applicable on 10000 / (actual basic)
From India, Delhi
Dear Please provide any circular, Act, Sec., notification issued by PF authority to clear more about the query. Reg
From India, Faridabad
From India, Faridabad
Dear Friends, Admin charges shall be paid on total wages and EDLI & EDLI Admin charges shall be restricted to Rs. 6,500/-. Regards, AVGN Vara Prasad
From India, Kakinada
From India, Kakinada
Hi Mahender, Admin. charges are payable of actual basic where as EDLI & Admin. on EDLI is paid on RS.6500/- basic salary p.m. indira
From India, Mumbai
From India, Mumbai
If employee and employer both are contributing on 10000/= then admin charges on 10000/=
if employee and employer are contributing on 6500 and remaining amount is deducted from employees salary as vol contribution then admin charges 6500/=
Sanjeev Sharma
PF & ESI Consultanct
From India, Chandigarh
if employee and employer are contributing on 6500 and remaining amount is deducted from employees salary as vol contribution then admin charges 6500/=
Sanjeev Sharma
PF & ESI Consultanct
From India, Chandigarh
Sanjeev Sharma is correct. If employer is contributing equal amount as employer share on voluntary contribution by employee, then you have to pay admin charges on Rs.10000/-
If you are not contributing equal amount as employer share on voluntary contribution by employee, admin charges applicable on Rs.6500/-
As your query is not clear on this particular point, you can decide yourself
Prahalatha
From India, Bangalore
If you are not contributing equal amount as employer share on voluntary contribution by employee, admin charges applicable on Rs.6500/-
As your query is not clear on this particular point, you can decide yourself
Prahalatha
From India, Bangalore
Dear Mahender Singh,
Greetings for the day,
Gone through your query it was noticed that Employee basic is Rs. 10,000/- but deduction of epf is on Rs. 6500/- i.e Rs. 780/- but the employee wish to contribute voluntarily on Rs. 10,000/- which can't be possible. As you have already mentioned that deduction of epf is on Rs. 6500/- so suggest employee that contribute vpf on Rs. 780/- i.e.Employee Contribution should be Rs. 780/- +Rs. 780/- = Rs. 1560/-
Employer Cotribution should be 3.67% = Rs. 239/-
Employer Contribution should be 8.33%= Rs. 541/-
Mind it VPF contribution impect only on employee share not on employer share.Secondly contrbution can only be done on EPF salary and the volutary contribution can only appear in pf a/c in employee share rather in seperate.In epf annual return i.e in Form 3A you have to mark %age of voluntary contribution on the top but in Employee share you have to mentioned Rs. 1580/- .
And as far as EPF challan is concern this should be make like this :
A/C1= (12% + VPF of EPF salary + 3.67% (employer Share)
A/C2= 1.1% of EPF salary.
A/C10= 8.33% of EPS Salary.
A/C21= 0.5% of EPS/EDLI Salary.
A/C22= 0.01% of EPS/EDLI Salary.
Hope this will clerify all your doubts ,if not query welcome.
Thanks & Regards,
From,
Sumit Kumar Saxena,
+91-9899669071.
From India, Ghaziabad
Greetings for the day,
Gone through your query it was noticed that Employee basic is Rs. 10,000/- but deduction of epf is on Rs. 6500/- i.e Rs. 780/- but the employee wish to contribute voluntarily on Rs. 10,000/- which can't be possible. As you have already mentioned that deduction of epf is on Rs. 6500/- so suggest employee that contribute vpf on Rs. 780/- i.e.Employee Contribution should be Rs. 780/- +Rs. 780/- = Rs. 1560/-
Employer Cotribution should be 3.67% = Rs. 239/-
Employer Contribution should be 8.33%= Rs. 541/-
Mind it VPF contribution impect only on employee share not on employer share.Secondly contrbution can only be done on EPF salary and the volutary contribution can only appear in pf a/c in employee share rather in seperate.In epf annual return i.e in Form 3A you have to mark %age of voluntary contribution on the top but in Employee share you have to mentioned Rs. 1580/- .
And as far as EPF challan is concern this should be make like this :
A/C1= (12% + VPF of EPF salary + 3.67% (employer Share)
A/C2= 1.1% of EPF salary.
A/C10= 8.33% of EPS Salary.
A/C21= 0.5% of EPS/EDLI Salary.
A/C22= 0.01% of EPS/EDLI Salary.
Hope this will clerify all your doubts ,if not query welcome.
Thanks & Regards,
From,
Sumit Kumar Saxena,
+91-9899669071.
From India, Ghaziabad
Dear Prahalatha,
For more clarity, Employer deducting PF on 6500/- instead of whatever the basic salary but employees wants to deduct PF on actual basic with same % i.e. 12 %. The difference will be considered as VPF contribution. In short Employer PF on 6500 @ 12% & employee PF @ 12% on actual basic which is more than 6500/- now query is that admin charges will be pay at 6500/- or actual basic salary.
Reg
Mahender Singh
From India, Faridabad
For more clarity, Employer deducting PF on 6500/- instead of whatever the basic salary but employees wants to deduct PF on actual basic with same % i.e. 12 %. The difference will be considered as VPF contribution. In short Employer PF on 6500 @ 12% & employee PF @ 12% on actual basic which is more than 6500/- now query is that admin charges will be pay at 6500/- or actual basic salary.
Reg
Mahender Singh
From India, Faridabad
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