Dear All,
Reference to the increase in the PF Wage ceiling limit, in case an employee's basic salary is less than 15000,
Should the employer increase the salary of the employee to 15000 (in this case there is increased cash outflow for the employer). or
Should all the other allowances/reimbursements of the employee added to basic to equal the basic to 15000/- (in this case the take home of the employee reduces- due to the increased contribution to PF on the revised basic).
What is the call taken by various organisations.
Please provide your valuable inputs.
Regards
Veena
attribution http://citehr.com#ixzz3CnezbY1w
From India, Hyderabad
Reference to the increase in the PF Wage ceiling limit, in case an employee's basic salary is less than 15000,
Should the employer increase the salary of the employee to 15000 (in this case there is increased cash outflow for the employer). or
Should all the other allowances/reimbursements of the employee added to basic to equal the basic to 15000/- (in this case the take home of the employee reduces- due to the increased contribution to PF on the revised basic).
What is the call taken by various organisations.
Please provide your valuable inputs.
Regards
Veena
attribution http://citehr.com#ixzz3CnezbY1w
From India, Hyderabad
Dear Ms. Veena
PF department has only increased the ceiling limit for PF contribution from 6500/- to 15000/-
It just means the what ever the current basic or gross it shall remain same but instead of restricting the contribution to 6500/- you may have to contribute the PF upto 15000/- In this case there will be more employees covered under EPF as well as there will be more savings of the employees
I don't think so as any company will change existing structure
From India, Bangalore
604PF department has only increased the ceiling limit for PF contribution from 6500/- to 15000/-
It just means the what ever the current basic or gross it shall remain same but instead of restricting the contribution to 6500/- you may have to contribute the PF upto 15000/- In this case there will be more employees covered under EPF as well as there will be more savings of the employees
I don't think so as any company will change existing structure
From India, Bangalore
Dear Team,
Warm greetings !!!
Earlier the Ceiling was Rs. 6500/- Now ceiling has been enhanced to Rs 15000/-
There are two options for the employee of the Organisation. At the commencement of Organisation, the employer decides whether they go with Wage ceiling restrictions or without restrictions. That is if your basic is more than Rs 15000/- you will restrict to Rs 15000/- only , if it is less then no need to enhance. Your basic is 14000/- then all the deduction will be calculated on Rs 14000/- only. There are 5 Accounts where PF subscription get deposited.
A/C No. 1 Employee contribution 12% Basic +DA+Retention allowances if any
( Irrespective of your Basic either 12% will be deducted or else it will be restricted to Rs. 15000/- only
A/C No. 10 Employee Pension Scheme: 8.33% of Rs. 15000/- that is Rs 1250/- will be deposited remaining amount willl be depoisited in A/C No. 1
My Basic pay is Rs 20000/- there is no DA, and Retention allowances.
So A/C No. 1 Rs. 2400/- will be deposited A/C No. 10 Rs. 1250/- Remaining Rs 1150/- will also deposited in A/C no 1.
My basic pay is Rs 14000/- then A/C No. 1 Rs 1680/- A/C Ni. 10 8.33% of Rs. 14000/- 3.67% pf Rs 14000/- will be deposited in A/C No. 1
For A/C 2, A/C no. 21 and A/C No. 22 ( 1.10% , 0.5% and 0.01% of Rs 15000/- to be deducted and deposited)
If your basic is more than this it will be restricted to Rs. 15000/- only if it is less no change .
Please let me know if you need any further information in this regard.
Warm regrds,
Pranab Chakraborty
9404384433
From India, Mumbai
Warm greetings !!!
Earlier the Ceiling was Rs. 6500/- Now ceiling has been enhanced to Rs 15000/-
There are two options for the employee of the Organisation. At the commencement of Organisation, the employer decides whether they go with Wage ceiling restrictions or without restrictions. That is if your basic is more than Rs 15000/- you will restrict to Rs 15000/- only , if it is less then no need to enhance. Your basic is 14000/- then all the deduction will be calculated on Rs 14000/- only. There are 5 Accounts where PF subscription get deposited.
A/C No. 1 Employee contribution 12% Basic +DA+Retention allowances if any
( Irrespective of your Basic either 12% will be deducted or else it will be restricted to Rs. 15000/- only
A/C No. 10 Employee Pension Scheme: 8.33% of Rs. 15000/- that is Rs 1250/- will be deposited remaining amount willl be depoisited in A/C No. 1
My Basic pay is Rs 20000/- there is no DA, and Retention allowances.
So A/C No. 1 Rs. 2400/- will be deposited A/C No. 10 Rs. 1250/- Remaining Rs 1150/- will also deposited in A/C no 1.
My basic pay is Rs 14000/- then A/C No. 1 Rs 1680/- A/C Ni. 10 8.33% of Rs. 14000/- 3.67% pf Rs 14000/- will be deposited in A/C No. 1
For A/C 2, A/C no. 21 and A/C No. 22 ( 1.10% , 0.5% and 0.01% of Rs 15000/- to be deducted and deposited)
If your basic is more than this it will be restricted to Rs. 15000/- only if it is less no change .
Please let me know if you need any further information in this regard.
Warm regrds,
Pranab Chakraborty
9404384433
From India, Mumbai
Wage ceiling for PF Contribution being 15000 now. Wages earned below 15000 including 15000 will come under the purview of the PF contribution.This means more no of employees now will have to be registered under PF and will receive the benefit of PF.I wish the process of retrieving benefits from PF like Loans etc from PF fund becomes easy and simplified for the employees,which can encourage employees to contribute more and save more for future.Even simplified process to avail privileges and benefit will contribute towards greater awareness about PF and its functioning.
From India, Vadodara
From India, Vadodara
Dear Seniors,
I have a query
we have employees who are excluded as there is basic salary is rs. 12000, now as the pf ceiling has been increase now can we reduce the basic salary of the employee so that employer can avoid extra burden due to more basic salary. Will it be objectionable for EPFO to reduce basic for lesser contribution. Please suggest.
Regards
Dinesh Kumar
From India, New Delhi
I have a query
we have employees who are excluded as there is basic salary is rs. 12000, now as the pf ceiling has been increase now can we reduce the basic salary of the employee so that employer can avoid extra burden due to more basic salary. Will it be objectionable for EPFO to reduce basic for lesser contribution. Please suggest.
Regards
Dinesh Kumar
From India, New Delhi
--------------
Dear Dinesh,
Your thinking is inviting troubles. Any attempt to revise the basic salary (i.e.Basic pay + DA+ value of food concession as per the EPF Act.) downward with a view to lower the Employers' contribution to the EPF A/cs is not only objectionable but also illegal, thus inviting troubles. So better comply with the amended law without tinkering anything which may be construed as unfair labour practices and punishable. Afterall considering the marginal increase from Rs.780 to 1800 per head, per month plus burden on a/c of employees added (were drawing more than 6500 who were not members then) now is not going to adversely affect the bottomline of your company to greater extent. Instead, try to examine other ways and means where wasteful expenditure could be trimmed to offset the addl.expenditure to major extent or boost up your revenue to cover the addl.CTC.
From India, Bangalore
Dear Dinesh,
Your thinking is inviting troubles. Any attempt to revise the basic salary (i.e.Basic pay + DA+ value of food concession as per the EPF Act.) downward with a view to lower the Employers' contribution to the EPF A/cs is not only objectionable but also illegal, thus inviting troubles. So better comply with the amended law without tinkering anything which may be construed as unfair labour practices and punishable. Afterall considering the marginal increase from Rs.780 to 1800 per head, per month plus burden on a/c of employees added (were drawing more than 6500 who were not members then) now is not going to adversely affect the bottomline of your company to greater extent. Instead, try to examine other ways and means where wasteful expenditure could be trimmed to offset the addl.expenditure to major extent or boost up your revenue to cover the addl.CTC.
From India, Bangalore
Dear All,
Required guidance on following
1) Some facility management Co's ( Contractors) just adhering to Rs 6500/- PF limit & reaming amount of salary distributed in other components like , Education Allowance, Other Allowance , HRA ,Personal Pay etc, Gross salary is Rs 9700/- now due to raise in PF Salary limit ,Shall we have to merge all above allowance in to basic salary up to Rs 15000/-
2) Experts are requested to give their opinions on that , the amendment is only related to Family Pension or Provident Fund contribution also ( Now compliance is done on Rs 6500/-as basic salary ) we have to increase deduction of both employee & employer by restructuring salary slab.
Regards,
Shirish Kulkarni
From India, Pune
Required guidance on following
1) Some facility management Co's ( Contractors) just adhering to Rs 6500/- PF limit & reaming amount of salary distributed in other components like , Education Allowance, Other Allowance , HRA ,Personal Pay etc, Gross salary is Rs 9700/- now due to raise in PF Salary limit ,Shall we have to merge all above allowance in to basic salary up to Rs 15000/-
2) Experts are requested to give their opinions on that , the amendment is only related to Family Pension or Provident Fund contribution also ( Now compliance is done on Rs 6500/-as basic salary ) we have to increase deduction of both employee & employer by restructuring salary slab.
Regards,
Shirish Kulkarni
From India, Pune
Dear Seniors,
I have two queries which is very piratical to the HR executives, senior executives managers working in small medium / small organization.
1- If an employee is not willing to deduct his EPF because his take home will get deducted / reduced, after several discussion he is totally unwilling to deduct his EPF . what should an human resources person do, what is the way to initiate at such situation when the numbers of such employees will 25 or more in an organization where total manpower pool is 80.
2- Is there any legal abstraction from EPFO while organizations are charging 25.61% among the basic salary of employees to whom they are hiring on CTC basis. Is there any guideline from EPFO for the same.
You may understand that above mentioned queries are very practical. I request all members & seniors kindly share your valued information / suggestion / advice on the matter.
With Regards,
Dillip
From India, Bhubaneswar
I have two queries which is very piratical to the HR executives, senior executives managers working in small medium / small organization.
1- If an employee is not willing to deduct his EPF because his take home will get deducted / reduced, after several discussion he is totally unwilling to deduct his EPF . what should an human resources person do, what is the way to initiate at such situation when the numbers of such employees will 25 or more in an organization where total manpower pool is 80.
2- Is there any legal abstraction from EPFO while organizations are charging 25.61% among the basic salary of employees to whom they are hiring on CTC basis. Is there any guideline from EPFO for the same.
You may understand that above mentioned queries are very practical. I request all members & seniors kindly share your valued information / suggestion / advice on the matter.
With Regards,
Dillip
From India, Bhubaneswar
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Minimum Wage Increase w.e.f. 01.07.2021.pdf