Hello all
I have an employee who has basic component in salary of Rs 16000. He wants to continur deducting PF since he was deducting in his previous company.
Can you tell me how much PF should we deduct 12% on basic i.e on 16000 or we can deduct PF on max.applicable limit of 6500 also.
thanks
From India, New Delhi
I have an employee who has basic component in salary of Rs 16000. He wants to continur deducting PF since he was deducting in his previous company.
Can you tell me how much PF should we deduct 12% on basic i.e on 16000 or we can deduct PF on max.applicable limit of 6500 also.
thanks
From India, New Delhi
This depends on your policy.But you should apply uniform policy to every cases where basic is above Rs 6500/-pm. Varghese Mathew
From India, Thiruvananthapuram
910From India, Thiruvananthapuram
Where the employee has a starting salary of more than Rs. 6500 (Basic + DA) and he wants to continue to have a PF account, he is entitled to do so under the law. Under the law, you are required to deduct and pay PF at 12% on the actual salary or Rs. 6500 whichever lower. Therefore, in this case, you are required to deduct @ 12% of Rs. 6500 and contribute same amount from your side. However, the employee can opt for a higher deduction. You are not required to match the same amount as employer contribution.
Hope this clarifies your doubt.
From India, Mumbai
Hope this clarifies your doubt.
From India, Mumbai
Hello Mr banerjee,
I have a query ,
Is it mandatory to deduct the PF @ 12 % on actual salary or on Rs 6500 whichever is less. Because my actual basic pay is more than 6500 and 12% of deduction is happening on actaul basic pay itself.
pls update.
thanks
naveen.
From India, Hyderabad
I have a query ,
Is it mandatory to deduct the PF @ 12 % on actual salary or on Rs 6500 whichever is less. Because my actual basic pay is more than 6500 and 12% of deduction is happening on actaul basic pay itself.
pls update.
thanks
naveen.
From India, Hyderabad
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Basic 4 pf.pdf