In our organisation we are deducting PF from the Basic Salary (inclusive of DA) . If the Salary exceeds Rs.6500 (>=6500) whether we can deduct PF contribution for an amount of Rs.6500/- only or for the actuals (for eg. Rs.7250/- as basic salary). Also on part of employer contribution what to do?Pls help.RgdsPrabhu.R
From India, Madras
From India, Madras
Hi Prabhu Employee has to pay 12% on his actual Basic+DA but employeer can freeze to 6500 itself.
From India, Madras
59From India, Madras
Dear Prabhu, I agree with MalikJS And Rajsekar, ur management can availed the celling for 6500/- and restrict thereto. Reagards, KIRAN KALE
From India, Kolhapur
From India, Kolhapur
Firstly PF is calculated upon Wages (basic + D.A. & Cash Value of food concession + Retaining allowances).
Rate of Contribution at present is 12% by employer and employees+ 0.5% towards E.D.L.I. contribution and 1.15% towards administrative charges by employer.
Lets take an example;-
wage of A is 6000 then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6000=720
If wage of A is 6500 then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6500=780
If wage of A is 7000 (more than 6500) then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6500=780
Means employers are not liable to pay more than 780 if when wage is revised (more than 6500).
From India
Rate of Contribution at present is 12% by employer and employees+ 0.5% towards E.D.L.I. contribution and 1.15% towards administrative charges by employer.
Lets take an example;-
wage of A is 6000 then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6000=720
If wage of A is 6500 then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6500=780
If wage of A is 7000 (more than 6500) then employers contribution towards PF Scheme + Pension Scheme will be 12% of 6500=780
Means employers are not liable to pay more than 780 if when wage is revised (more than 6500).
From India
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Increase in PF Slab 15K to 25K.pdf