Dear Members,
Please give your views for epf sealing on basic wages.
means if an employee\'s basic salary/ wages is more then 6500/- and we have made sealing on 6500 for epf and he worked for 15 days then what will be the procedure to calculate epf. if his 15 days basic is also more then 6500/-
for Exe. employee A whose basic salary is 60000/- per month he has worked for 15 days then his 15 days total basic is 30000/- now we have to calculate epf amount please give your views.
From India, Shimla
Please give your views for epf sealing on basic wages.
means if an employee\'s basic salary/ wages is more then 6500/- and we have made sealing on 6500 for epf and he worked for 15 days then what will be the procedure to calculate epf. if his 15 days basic is also more then 6500/-
for Exe. employee A whose basic salary is 60000/- per month he has worked for 15 days then his 15 days total basic is 30000/- now we have to calculate epf amount please give your views.
From India, Shimla
Hope their is no difference in it. As you are calculating the PF on the ceiling of basic Rs.6500 for all the employees.
As when his salary is Rs.60,000.00 and you pay on Rs.6500 as PF, then on Basic of Rs.30,000 need to paid on the ceiling of Rs.6500 only.
It will be the same as you paying on the ceiling of basic Rs.6500/-
you can alos check with the local PF office persons for better clarification.
From United Kingdom, London
196As when his salary is Rs.60,000.00 and you pay on Rs.6500 as PF, then on Basic of Rs.30,000 need to paid on the ceiling of Rs.6500 only.
It will be the same as you paying on the ceiling of basic Rs.6500/-
you can alos check with the local PF office persons for better clarification.
From United Kingdom, London
Dear Arun,
As rightly said there will be no difference as such as you are calculating and deducting PF on Basic Salary which is more than ceiling of Rs. 6500/-.
The deduction of Rs. 780/- (12% of 6500) will continue unless the basic salary falls below the amount of Rs.6500/-.
From India, Andheri
As rightly said there will be no difference as such as you are calculating and deducting PF on Basic Salary which is more than ceiling of Rs. 6500/-.
The deduction of Rs. 780/- (12% of 6500) will continue unless the basic salary falls below the amount of Rs.6500/-.
From India, Andheri
If an employee with salary of Rs 10000/-pm works only for 15 days in a month his deemed basic ceiling is Rs3250/-.Then, I think employers contribution is limited to 12% Rs3250/- ie Rs 390/-only?
Varghese Mathew
From India, Thiruvananthapuram
Varghese Mathew
From India, Thiruvananthapuram
Hello,
EPF sealing of 6500 is for the full month and for 15 days EPF basic would be calculated according to calendar days of the month on 6500 and EPF will be deducted and deposited accordingly. For on line filing data for challan submission, you have to show NCP (Non contributing period) Hence, when employees has worked for 15 days only and not for full month, then you have to show his contribution period of 15 days. This also affects Pensions scheme. See on-line challan preparation of EPF
If agreed to your view point for EPF deduction on 6500 for 15 days working, then you will showing his working in your record for 15 days and in EPF record for full month. Will it be correct?
Thanks
V K Gupta
From India, Panipat
EPF sealing of 6500 is for the full month and for 15 days EPF basic would be calculated according to calendar days of the month on 6500 and EPF will be deducted and deposited accordingly. For on line filing data for challan submission, you have to show NCP (Non contributing period) Hence, when employees has worked for 15 days only and not for full month, then you have to show his contribution period of 15 days. This also affects Pensions scheme. See on-line challan preparation of EPF
If agreed to your view point for EPF deduction on 6500 for 15 days working, then you will showing his working in your record for 15 days and in EPF record for full month. Will it be correct?
Thanks
V K Gupta
From India, Panipat
Dear friends,
Yes, Mr. Varghese Mathew is right, in this regard. If two employees at the same salary of Rs. 60,000 work for 30 days and 15 days respectively; how will their PF contribution become same? Ceiling on salary 6500 means it is for total one month. If attendance get reduces, the connected benefits/contributions will also accordingly.
Abbas.P.S
From India, Bangalore
Yes, Mr. Varghese Mathew is right, in this regard. If two employees at the same salary of Rs. 60,000 work for 30 days and 15 days respectively; how will their PF contribution become same? Ceiling on salary 6500 means it is for total one month. If attendance get reduces, the connected benefits/contributions will also accordingly.
Abbas.P.S
From India, Bangalore
When I just saw the heading, I was a bit perplexed.... Sealing or Ceiling... both have different meanings.... phonetically right but meaningwise, it is not ! Better to check out appropriate spelling before posting !
From India
From India
Dear Arun,
The Executive category of persons which you have mentioned in your query normally termed as 'Excluded Employee', as defined under para 2(f) of the Employees' Provident Fund Scheme. An employee who, having been a member, withdrew the full amount from his EPF accumulation on retirement after the age of 55 or for migration from India whose pay exceeds Rs. 6500/- at the time of appointment.
AN EMPLOYEE ONCE COVERED WILL CONTINUE TO BE COVERED- if the pay of an employee, who is already a member of the scheme, exceeds the limit of Rs. 6500/- he will continue to be covered under the Scheme.(Para 26 A (2)) and 6 A of EPS
For example:- The pay of 'X’ at the time of joining the employment on 1/4/2012 was Rs. 6000/-p.m.. His pay was increased to Rs.7000/- with effect from 1/4/2013. Though his pay exceeded the ceiling of Rs 6500/-, he will not be treated as an ‘excluded employee’ as provided under Para 2 (f) of the Scheme. The payment of contribution in respect of him has to be continued at least on Rs. 6500/-.
As regard your query that if an employee's basic salary/ wages is more then 6500/- and have made sealing on 6500 for epf and he worked for 15 days then what will be the procedure to calculate epf. if his 15 days basic is also more then 6500/- is concerned, the deduction of the PF contribution is limited to the amount of salary earned by an employee (subject to a limit of Rs 6500/- p.m) irrespective of no. of days of work put in by him. A limit of Rs 6500/- p.m also holds good for the for Exe. employee whose basic salary is 60000/- per month and he has worked for 15 days then his 15 days total basic is 30000/- as inquired by you.
BS Kalsi
Member since 2011
From India, Mumbai
The Executive category of persons which you have mentioned in your query normally termed as 'Excluded Employee', as defined under para 2(f) of the Employees' Provident Fund Scheme. An employee who, having been a member, withdrew the full amount from his EPF accumulation on retirement after the age of 55 or for migration from India whose pay exceeds Rs. 6500/- at the time of appointment.
AN EMPLOYEE ONCE COVERED WILL CONTINUE TO BE COVERED- if the pay of an employee, who is already a member of the scheme, exceeds the limit of Rs. 6500/- he will continue to be covered under the Scheme.(Para 26 A (2)) and 6 A of EPS
For example:- The pay of 'X’ at the time of joining the employment on 1/4/2012 was Rs. 6000/-p.m.. His pay was increased to Rs.7000/- with effect from 1/4/2013. Though his pay exceeded the ceiling of Rs 6500/-, he will not be treated as an ‘excluded employee’ as provided under Para 2 (f) of the Scheme. The payment of contribution in respect of him has to be continued at least on Rs. 6500/-.
As regard your query that if an employee's basic salary/ wages is more then 6500/- and have made sealing on 6500 for epf and he worked for 15 days then what will be the procedure to calculate epf. if his 15 days basic is also more then 6500/- is concerned, the deduction of the PF contribution is limited to the amount of salary earned by an employee (subject to a limit of Rs 6500/- p.m) irrespective of no. of days of work put in by him. A limit of Rs 6500/- p.m also holds good for the for Exe. employee whose basic salary is 60000/- per month and he has worked for 15 days then his 15 days total basic is 30000/- as inquired by you.
BS Kalsi
Member since 2011
From India, Mumbai
Please clarify below.. Employee basic is Rs.7000/- so employer contribution will be 780 and employee contribution will be 12% of 7000. Is this correct.
From India, Hyderabad
From India, Hyderabad
Marella
Employee can contribute 12% of Rs6500/- or actual salary or more than 12% of the salary .But employers contribution is legally limited to 13.61% of Rs 6500/-.But he at his will can contribute for more than Rs 6500/-.He cannot contribute more than 13.61% any way.
Varghese Mathew
From India, Thiruvananthapuram
Employee can contribute 12% of Rs6500/- or actual salary or more than 12% of the salary .But employers contribution is legally limited to 13.61% of Rs 6500/-.But he at his will can contribute for more than Rs 6500/-.He cannot contribute more than 13.61% any way.
Varghese Mathew
From India, Thiruvananthapuram
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.
Salary-Note.doc
SALARY SHEET CALCULATION.xls