Hello Seniors,
We are doing PF deductions to the only those whose salary is less than 6500/-. Employer and Employee equally contribute the PF. But those who are above 6500/-, for them employer not contributing any amount and the employee will have their interest to contribute the PF voluntary from his/her salary. If interested entire 24% will be deducted from their salary itself.
In this situation I am getting different opinions from so many people.
Hence I request you to kindly give your suggestion whether we are doing correct or wrong in view of employer what has to be contributed and what are all the obligations it has towards each employee of any salary range towards PF contribution.
Thanks in advance..
Sandhya.
From India, Visakhapatnam
1We are doing PF deductions to the only those whose salary is less than 6500/-. Employer and Employee equally contribute the PF. But those who are above 6500/-, for them employer not contributing any amount and the employee will have their interest to contribute the PF voluntary from his/her salary. If interested entire 24% will be deducted from their salary itself.
In this situation I am getting different opinions from so many people.
Hence I request you to kindly give your suggestion whether we are doing correct or wrong in view of employer what has to be contributed and what are all the obligations it has towards each employee of any salary range towards PF contribution.
Thanks in advance..
Sandhya.
From India, Visakhapatnam
Dear Sandhya,
You are not suppose to deduct anything from the Employee towards Employer's contribution.
It is the duty of the employer to contribute their part.
Advice the management accordingly
S.Sethupathy,
Erode.
From India, Selam
You are not suppose to deduct anything from the Employee towards Employer's contribution.
It is the duty of the employer to contribute their part.
Advice the management accordingly
S.Sethupathy,
Erode.
From India, Selam
Hi Sandhya,
I am totally disagreed with sethupathy.
if an employee is getting less and equal to 6500/- pm he is eligible for EPF and contribution paid 12% each (Employee and Employer)
further provided that if an employee whose salary is more than 6500/- pm but declare (Form 2 and Form 11 )that he wanted to contribute on E.P.F, he is also eligible. but in the term of employer contribution limit has been define is 780/- rs pm on E.P.F above this limit, it is all part of management discrimination.
From India
I am totally disagreed with sethupathy.
if an employee is getting less and equal to 6500/- pm he is eligible for EPF and contribution paid 12% each (Employee and Employer)
further provided that if an employee whose salary is more than 6500/- pm but declare (Form 2 and Form 11 )that he wanted to contribute on E.P.F, he is also eligible. but in the term of employer contribution limit has been define is 780/- rs pm on E.P.F above this limit, it is all part of management discrimination.
From India
I want to know, if the basic pay of an employee is Rs.7500/- In this case 12% employer share is Rs.900/- and the break up should be Rs.541/- under Pension fund(6500 x 8.33%) & balance Rs.359/- under provident fund(900-541) or the percentage formula 8.33% & 3.67% of Rs.7500/- should apply. Which one is the correct way.
reply to
From India, Delhi
reply to
From India, Delhi
But till now we have not contributed anything on behalf of employer part for the above 6,500/- salaried employees. Shall we start new from this assessment year. Is that possible. Sandhya.
From India, Visakhapatnam
From India, Visakhapatnam
one more thing once started the PF contribution cant we stop in between, is there any specific period of contribution. Sandhya.
From India, Visakhapatnam
From India, Visakhapatnam
Dear Sandhya,
Company should contribute for PF upto salary RS: 6500( Basic+DA).
If any employee has withdrawan his PF from his previous company he becomes ineligible for PF in Next company.
If Employee doess not have PF account and his slary is More than 6500 ( Basic+DA) then he will not be eligible for PF as he is Exempted employee from PF and EDLI as per the Act. in that case company should contribute for Pension fund that is 8.33% of salary( Basic+DA). but if comany desires it can contibute for PF but once started contributing it can not be stopped.
Getting the form No. 11 filled from New joinee is also important.
If any employee wants to contribute more then he can but, employer should contribute upto 6500 only as it is mandatory. if employer wants he can contribute more (i.e. equal to employees contribution)
Any Emloyer can not deduct emploer contribution from Employees salary it is an offence and shall be liable for legal action.
If you have deducted employer contribution from Employees salary then give the amount back to employees by cheque. it will remove legal obligations and company will be safe from any legal action.
From India, Mumbai
Company should contribute for PF upto salary RS: 6500( Basic+DA).
If any employee has withdrawan his PF from his previous company he becomes ineligible for PF in Next company.
If Employee doess not have PF account and his slary is More than 6500 ( Basic+DA) then he will not be eligible for PF as he is Exempted employee from PF and EDLI as per the Act. in that case company should contribute for Pension fund that is 8.33% of salary( Basic+DA). but if comany desires it can contibute for PF but once started contributing it can not be stopped.
Getting the form No. 11 filled from New joinee is also important.
If any employee wants to contribute more then he can but, employer should contribute upto 6500 only as it is mandatory. if employer wants he can contribute more (i.e. equal to employees contribution)
Any Emloyer can not deduct emploer contribution from Employees salary it is an offence and shall be liable for legal action.
If you have deducted employer contribution from Employees salary then give the amount back to employees by cheque. it will remove legal obligations and company will be safe from any legal action.
From India, Mumbai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
SC Judgment-No obligation to excess contribution than Statutory Limit.docx
PF Contribution on Leave Encashment - Clarification by EPFO.pdf