Dear seniors,
I have questions about PF
One of my employee wants PF benefits but his basic salary more than 6550/-Rs. He is not eligible for PF deduction as per low.
Now My question is that he is ready for deduct his pf amount (12%) but management don’t want to pay their pf contribution (13.61%) what can I do on this situation.
Kindly give the suggestion ASAP.
From India, Bangalore
1I have questions about PF
One of my employee wants PF benefits but his basic salary more than 6550/-Rs. He is not eligible for PF deduction as per low.
Now My question is that he is ready for deduct his pf amount (12%) but management don’t want to pay their pf contribution (13.61%) what can I do on this situation.
Kindly give the suggestion ASAP.
From India, Bangalore
Dear Indravadan,
PF contribution is necessary from both ends.
If his basic is more than 6500 Rs, employer can limit the contribution to PF (3.67%) to 239 Rs (6500*3.67%). Pension (8.33%) is however limited to 541 Rs (6500*8.33%).
Now if employee wants to contribute to his full basic but 12% he can do so if agreed by the employer. Hope your doubt is clarified.
From India, Hyderabad
PF contribution is necessary from both ends.
If his basic is more than 6500 Rs, employer can limit the contribution to PF (3.67%) to 239 Rs (6500*3.67%). Pension (8.33%) is however limited to 541 Rs (6500*8.33%).
Now if employee wants to contribute to his full basic but 12% he can do so if agreed by the employer. Hope your doubt is clarified.
From India, Hyderabad
Hi Indravadan,
There ia an option of VPF ( Voluntary PF contribution) under PF Act. A member can opt for higher PF deduction which may be more than the PF contribution made by the employer. So, even if the management contributes 12%, member can opt for higher contribution.
Krishnakali
From India, Calcutta
There ia an option of VPF ( Voluntary PF contribution) under PF Act. A member can opt for higher PF deduction which may be more than the PF contribution made by the employer. So, even if the management contributes 12%, member can opt for higher contribution.
Krishnakali
From India, Calcutta
Dear Indravadan,
It is rightly said by Krishna. Employee has to contribute 12%on 6500 - This is must.
Employee can contribute more than this ie 12% on his full basic (>6500). - This is on the consent of employer.
Then it comes to VPF - Employee can contribute more than 12% on his basic (whether it 6500 or full basic) - This is VPF. This also the employer has to facilitate.
From India, Hyderabad
It is rightly said by Krishna. Employee has to contribute 12%on 6500 - This is must.
Employee can contribute more than this ie 12% on his full basic (>6500). - This is on the consent of employer.
Then it comes to VPF - Employee can contribute more than 12% on his basic (whether it 6500 or full basic) - This is VPF. This also the employer has to facilitate.
From India, Hyderabad
Tell your management to pay their contribution. It is compulsory..................
If management refuses to pay in future it will lead to file a case against employer by epfo authorities. Not paying the contribution is an offence which leads to several punishments go through PF ACT.
Management has no right to refuse from paying contribution
As said by all members management can put a limit upto 6500 which is legal. employer is not bound to pay above 6500.
Arun J.
From India, Hyderabad
If management refuses to pay in future it will lead to file a case against employer by epfo authorities. Not paying the contribution is an offence which leads to several punishments go through PF ACT.
Management has no right to refuse from paying contribution
As said by all members management can put a limit upto 6500 which is legal. employer is not bound to pay above 6500.
Arun J.
From India, Hyderabad
What formalities to complete if i want to opt VPF scheme.Who will take lead employee self or organization
Who will deduct and deposit the VPF if i give my consent.
Is there any monthly/yearly limit of VPF.
Will PF authorities give interest on the VPF deposit, whats current rate of interest.
How VPF is different from PPF
From India, Jaipur
Who will deduct and deposit the VPF if i give my consent.
Is there any monthly/yearly limit of VPF.
Will PF authorities give interest on the VPF deposit, whats current rate of interest.
How VPF is different from PPF
From India, Jaipur
Hi,
It is a wish from employee's end that he/she want to contribute more to their PF. So an written consent has to be taken from employee that since when and how much does he wants to contribute to PF as VPF.
VPF is taken care simultaneously as for PF. While you deduct PF in the payroll VPF is also calculated and deducted. While accounting it goes into employees share of contribution.
There is no limit to VPF. But it can be changed (increase/decrease) only once in a year. At the beginning of the year the employee has to declare that how much percentage of VPF has to be considered. This cannot be changed or stopped in the middle of the year.
Yes VPF also gains the same interest as PF.
To understand PPF you have various blogs and sites available. Please take a study.
From India, Hyderabad
It is a wish from employee's end that he/she want to contribute more to their PF. So an written consent has to be taken from employee that since when and how much does he wants to contribute to PF as VPF.
VPF is taken care simultaneously as for PF. While you deduct PF in the payroll VPF is also calculated and deducted. While accounting it goes into employees share of contribution.
There is no limit to VPF. But it can be changed (increase/decrease) only once in a year. At the beginning of the year the employee has to declare that how much percentage of VPF has to be considered. This cannot be changed or stopped in the middle of the year.
Yes VPF also gains the same interest as PF.
To understand PPF you have various blogs and sites available. Please take a study.
From India, Hyderabad
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls