The maximum limit of basic for calculation of pf is Rs.6500/-.But till today pf is calculated on the basis of actual basic (say Rs.7500/-).
Can i start calculating the pf deduction by assuming the basic as Rs.6500/-.
Pl. suggest
From India, Nagpur
Can i start calculating the pf deduction by assuming the basic as Rs.6500/-.
Pl. suggest
From India, Nagpur
167
Dear,
Have a nice day,
P.F. Max. Limit as per law 6500/- but on the basis of actual basic 7500/- of employee . u deduct p.f. on actual basic than u fiil up higher rate permission letter otherwise u deduct max. limit 6500/-
wirh warm regards,
Paresh M.Vyas
Advocate & Labour Laws Consultant(M)
From India, Mumbai
Have a nice day,
P.F. Max. Limit as per law 6500/- but on the basis of actual basic 7500/- of employee . u deduct p.f. on actual basic than u fiil up higher rate permission letter otherwise u deduct max. limit 6500/-
wirh warm regards,
Paresh M.Vyas
Advocate & Labour Laws Consultant(M)
From India, Mumbai
Dear,
During coverage of your establishment under PF & MP Act your employer might have submitted a letter to PF authorities intending to deduct PF on the salary more than Rs.6500/- and to pay administrative charges on such higher salaries. Then only you can deduct PF on higher salaries. Once you have started deduction on higher salaries, you can not reduce the same afterwards. Otherwise the employees drawing salary more than Rs.6500/- p.m. are excluded employee.
thanks & regds,
manoranjan
From India, Delhi
During coverage of your establishment under PF & MP Act your employer might have submitted a letter to PF authorities intending to deduct PF on the salary more than Rs.6500/- and to pay administrative charges on such higher salaries. Then only you can deduct PF on higher salaries. Once you have started deduction on higher salaries, you can not reduce the same afterwards. Otherwise the employees drawing salary more than Rs.6500/- p.m. are excluded employee.
thanks & regds,
manoranjan
From India, Delhi
Dear All,
There is no harm that the service conditions can be changed / altered with specific notice served on competant authorities as well as the employees as per the statues. So even if you have been deducting pf for basic more than Rs.6500/-, you can serve notice of change of service conditions appropriately to the concerned parties and the comp.authority and start implementing the change after the stipulated time. PF Commissioner as well as the Labour Commissioner of the State or Centre as the case may be have to be notified.
Only maximum is stipulated in the PF&MP Act. Even for exempt employees, deduction for full basic can be made with a consent notice by the employer.
Regards
Gopan
From India, Kochi
There is no harm that the service conditions can be changed / altered with specific notice served on competant authorities as well as the employees as per the statues. So even if you have been deducting pf for basic more than Rs.6500/-, you can serve notice of change of service conditions appropriately to the concerned parties and the comp.authority and start implementing the change after the stipulated time. PF Commissioner as well as the Labour Commissioner of the State or Centre as the case may be have to be notified.
Only maximum is stipulated in the PF&MP Act. Even for exempt employees, deduction for full basic can be made with a consent notice by the employer.
Regards
Gopan
From India, Kochi
Dear friend,
I have implemented the change of limiting the PF contribution on basic of Rs.6,500/-. Prior to my joining in the organisation, the employees were covered 12% of basic (actual). At the time of increments, I realised most of the employees look at take home salary rather than PF savings. I suggested to the management to make two categories of employees. Managerial and non-managerial. Managerial cadre with 12% of actual basic (to take care of Income Tax under 80 C) and non-managerial with PF limit of Rs.6500/- or actual whichever is less (to increase the take home without disturbing the agreed CTC package). In one of our bi-monthly staff meeting, I got the consent of the staff and I met the Regional PF Commissioner personally and took his approval for implementing this change. This scheme is running smoothly now. I have a better leverage at the time of salary negotiation/increments as well as employees are happy that their take home is attractive. Win-win situation.
Regards
Bhavan
From India, Bangalore
I have implemented the change of limiting the PF contribution on basic of Rs.6,500/-. Prior to my joining in the organisation, the employees were covered 12% of basic (actual). At the time of increments, I realised most of the employees look at take home salary rather than PF savings. I suggested to the management to make two categories of employees. Managerial and non-managerial. Managerial cadre with 12% of actual basic (to take care of Income Tax under 80 C) and non-managerial with PF limit of Rs.6500/- or actual whichever is less (to increase the take home without disturbing the agreed CTC package). In one of our bi-monthly staff meeting, I got the consent of the staff and I met the Regional PF Commissioner personally and took his approval for implementing this change. This scheme is running smoothly now. I have a better leverage at the time of salary negotiation/increments as well as employees are happy that their take home is attractive. Win-win situation.
Regards
Bhavan
From India, Bangalore
Hello Mr. Rahul,
I have a query regarding VPF. If the employee wants to contribute more than Rs.780/-. Do the employer need to take any written document from Employee or do we need to submit any document to PF office. Now we are using e-sewa then also require submitting any documents?
I am unable to see the e-passbook of individual. It’s only for our organization this problem is there or for all other company members also unable to see there e-passbook?
Thanks & Regards,
Sheela
From India, Coimbatore
I have a query regarding VPF. If the employee wants to contribute more than Rs.780/-. Do the employer need to take any written document from Employee or do we need to submit any document to PF office. Now we are using e-sewa then also require submitting any documents?
I am unable to see the e-passbook of individual. It’s only for our organization this problem is there or for all other company members also unable to see there e-passbook?
Thanks & Regards,
Sheela
From India, Coimbatore
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls