Hi,
I would like clarification from experienced HR guys on:
1. An employee drawing a Salary of More than Rs.6500/- pm, i.e. his basic salary is Rs.12,000/- pm...what will be the PF deduction. The employer need to be guided on this.
2. Another employee drawing a CTC of 18 lacs per annum. How to fix his salary keeping the PF statutory compliance in mind.
Kindly clarify
From India, Hyderabad
I would like clarification from experienced HR guys on:
1. An employee drawing a Salary of More than Rs.6500/- pm, i.e. his basic salary is Rs.12,000/- pm...what will be the PF deduction. The employer need to be guided on this.
2. Another employee drawing a CTC of 18 lacs per annum. How to fix his salary keeping the PF statutory compliance in mind.
Kindly clarify
From India, Hyderabad
Hi shridhar ,
as per your query ans is under .
1 mandatory PF contribution 780 from employer side , emp may be 12% of Basic or equal amounts as employer .
2 basic will be 50% to 60 % of Gross .
PF as ans no 1
Regards
Rajvir Singh
From India, Chandigarh
4as per your query ans is under .
1 mandatory PF contribution 780 from employer side , emp may be 12% of Basic or equal amounts as employer .
2 basic will be 50% to 60 % of Gross .
PF as ans no 1
Regards
Rajvir Singh
From India, Chandigarh
HI Rajveer, is there any Provision for basis 50 & 60 %. same problem with me. what should be the basis amount?
From India, Mumbai
From India, Mumbai
Hi Dheeraj, its depend on your company policy but not less then 50% of your gross stander HR practice . Regards Rajvir Singh
From India, Chandigarh
From India, Chandigarh
Dear Sridharhyd,
The replies for your query are as folows:
1. Currently, the wages ceiling for EPF Contribution is Rs. 6,500. So, if an employee's Basic + DA is more than Rs. 6,500/- then his contribution will be made on the maximum, i.e. Rs. 6,500/-. Both the contribution, i.e. for Employer (maximum 239/- & 541/- ) as well as for Employee (maximum 780/-), will be calculated on the basis of Rs. 6,500/-, till the further revision of the EPF Wages Ceiling.
2. To fix ones salary after keeping the EPF Compliance in mind is not very hectic, as the maximum contribution towards EPF from the company will be Rs. 780/- (239 + 541 = 780). So, totally it comes to Rs. 9,360/- annually, which can be accordingly assumed the part of CTC and accordingly the Salary can be fixed on ratio basis as per your company policy.
Hope this will help you. Cheers.
From India, Delhi
The replies for your query are as folows:
1. Currently, the wages ceiling for EPF Contribution is Rs. 6,500. So, if an employee's Basic + DA is more than Rs. 6,500/- then his contribution will be made on the maximum, i.e. Rs. 6,500/-. Both the contribution, i.e. for Employer (maximum 239/- & 541/- ) as well as for Employee (maximum 780/-), will be calculated on the basis of Rs. 6,500/-, till the further revision of the EPF Wages Ceiling.
2. To fix ones salary after keeping the EPF Compliance in mind is not very hectic, as the maximum contribution towards EPF from the company will be Rs. 780/- (239 + 541 = 780). So, totally it comes to Rs. 9,360/- annually, which can be accordingly assumed the part of CTC and accordingly the Salary can be fixed on ratio basis as per your company policy.
Hope this will help you. Cheers.
From India, Delhi
Hi
You need not to worry about people getting more than 6500. You can pay 780 as nominal rate and no one going to question on that.
In my company, we have seiling for fixing a salary. the basic we fix for any employee up to 20k is 50%, rest between 10k to 30k (minimum gross is 20k). It depends on the company's discretion.
You need not to worry about people getting more than 6500. You can pay 780 as nominal rate and no one going to question on that.
In my company, we have seiling for fixing a salary. the basic we fix for any employee up to 20k is 50%, rest between 10k to 30k (minimum gross is 20k). It depends on the company's discretion.
1. WHAT EVER BE HIS BASIC, FIRST FIND OUT THE BASIC + DA WHAT HE HAD GOT DURING THE TIME OF ENTERING YOUR CONCERN. IF THAT CROSSES RS.6500.00 THERE IS NO STATUTOTY IMPLICATION OF PF. OTHER WISE HE IS STARIGHT AWAY EXEMPTED.
BUT, IF HIS FIRST MONTHS TOTAL IS BELOW RS.6500.00, YOU HAVE TO DEDUCT BOTH EPF AND FPF FOR 12%.
EVEN THOUGH THE MAXIMUM YOU DEDUCT CAN BE RS.780.00
2. KEEP THE BASIC ABOVE RS.6500.00 AND APPLY THE FIST INSTANCE
From India, Mangalore
BUT, IF HIS FIRST MONTHS TOTAL IS BELOW RS.6500.00, YOU HAVE TO DEDUCT BOTH EPF AND FPF FOR 12%.
EVEN THOUGH THE MAXIMUM YOU DEDUCT CAN BE RS.780.00
2. KEEP THE BASIC ABOVE RS.6500.00 AND APPLY THE FIST INSTANCE
From India, Mangalore
Dear Seniors,
The same query has been raised in my company : as to what if an employee ( managerial level) wishes to contribute more from his salary for the PF?
Our PF consultant has suggested that in such cases EPFO has a provision called a VOLUNTARY PROVIDENT FUND i.e. VPF. Wherein the employee can contribute to maximum of 6,500 rupees from his salary and the employer's share will remain same upto 780 rupees.
Requesting the seniors to please help with your views, Thanks in advance.
From India, Pune
The same query has been raised in my company : as to what if an employee ( managerial level) wishes to contribute more from his salary for the PF?
Our PF consultant has suggested that in such cases EPFO has a provision called a VOLUNTARY PROVIDENT FUND i.e. VPF. Wherein the employee can contribute to maximum of 6,500 rupees from his salary and the employer's share will remain same upto 780 rupees.
Requesting the seniors to please help with your views, Thanks in advance.
From India, Pune
Dear Neelam M'am,
Your consultant is right. As per current wages ceiling, an epf member contributes 12% of the Basic+DA, upto current wages ceiling, i.e. Rs. 6,500/-, which is maximum of Rs. 780/- and the same is contributed by the employer.
But, if any of the member wants to contribute more than the specified contribution rates then, in this case the member can contribute upto 100% of the wages ceiling in EPF, but the employer will have to contribute at the rate of 12% on the current wages ceiling, i.e. Rs. 6,500/-.
Hope this will help you.
From India, Delhi
Your consultant is right. As per current wages ceiling, an epf member contributes 12% of the Basic+DA, upto current wages ceiling, i.e. Rs. 6,500/-, which is maximum of Rs. 780/- and the same is contributed by the employer.
But, if any of the member wants to contribute more than the specified contribution rates then, in this case the member can contribute upto 100% of the wages ceiling in EPF, but the employer will have to contribute at the rate of 12% on the current wages ceiling, i.e. Rs. 6,500/-.
Hope this will help you.
From India, Delhi
Thanks Bhuwan for the clarification...
My employer has started his business in July 2013, though ESI and PF has been deducted from the employees, the same was not remitted...Can we make remit to PF and ESI a consolidated remittance clubbing all the months from July to November....will there be a penalty?
From India, Hyderabad
My employer has started his business in July 2013, though ESI and PF has been deducted from the employees, the same was not remitted...Can we make remit to PF and ESI a consolidated remittance clubbing all the months from July to November....will there be a penalty?
From India, Hyderabad
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.
PF Judgement - Bom HC - Temp employee.doc
SALARY with out PF Deduction.xls