Sirs/Ma\'ams,
I am deducting EPF from my employees as per example: Basic= 11,000 Employee Share @12%= 1320 Employer\'s @13.6%= 1496. Gross Sal= 12,496 Is this correct? If not:
1.Can I now fall back on the wage ceiling of Rs.6500 and deduct accordingly so that my employees get more cash-in-hand, and how can I do so?
2. What will happen to the excess amount that has been deposited so far into the EPFO A/c?
From India, Siliguri
1I am deducting EPF from my employees as per example: Basic= 11,000 Employee Share @12%= 1320 Employer\'s @13.6%= 1496. Gross Sal= 12,496 Is this correct? If not:
1.Can I now fall back on the wage ceiling of Rs.6500 and deduct accordingly so that my employees get more cash-in-hand, and how can I do so?
2. What will happen to the excess amount that has been deposited so far into the EPFO A/c?
From India, Siliguri
Dear Nishant,
As per your mail, we are liable to pay only on 6500 @12%(basic) either side,if employee wishes to have on PF we can cut 12% when the basic is more than 6500 but as an EMPLOYER we will be liable to contribute 6500 @12% and 1.61 % as an admin expenses.
Note:-When employee basic is more than 6500, he opt for no PF deduction when he gives in writing to employer.
The Provident Fund (PF) contribution is 12% of PF Wages from both employee and employer. For the calculation, the maximum limit of Basic is Rs 6500/-. It means even if the employee’s PF Wages is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780/-.
However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. The various accounts of PF Challan are as mentioned below.
Employee Employer
A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account 12 3.67
1.10
8.33
0.50
0.01
Total 12 13.61
PF admin charge = Employer has to pay 1.1 % of pf wages
EDLIS: Employer has to pay 0.5% of pf wages
EDLIS admin charge:Employer has to pay 0.01% of pf wages.
Hence, total additional percentage employer has to pay is rupees : 1.61% of basic so employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of pf wages.
Employees complete 12% goes to PF account while employer contributions’ 8.33% goes to Pension Fund and 3.67% goes to PF Fund.
RAGHU
HR-RAMKY
From India, Bhopal
As per your mail, we are liable to pay only on 6500 @12%(basic) either side,if employee wishes to have on PF we can cut 12% when the basic is more than 6500 but as an EMPLOYER we will be liable to contribute 6500 @12% and 1.61 % as an admin expenses.
Note:-When employee basic is more than 6500, he opt for no PF deduction when he gives in writing to employer.
The Provident Fund (PF) contribution is 12% of PF Wages from both employee and employer. For the calculation, the maximum limit of Basic is Rs 6500/-. It means even if the employee’s PF Wages is above Rs 6500/-, the employer is liable to contribute only on Rs 6500/-, that is Rs 780/-.
However if an employee so desires he may voluntarily contribute more than 12%. Apart from it an employer also has to pay some administration charges. The various accounts of PF Challan are as mentioned below.
Employee Employer
A/c No 1: PF contribution Account
A/c No 2: PF Admin account
A/c No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS admin account 12 3.67
1.10
8.33
0.50
0.01
Total 12 13.61
PF admin charge = Employer has to pay 1.1 % of pf wages
EDLIS: Employer has to pay 0.5% of pf wages
EDLIS admin charge:Employer has to pay 0.01% of pf wages.
Hence, total additional percentage employer has to pay is rupees : 1.61% of basic so employer has actually to pay 13.61 % of Basic and employee has to pay only 12% of pf wages.
Employees complete 12% goes to PF account while employer contributions’ 8.33% goes to Pension Fund and 3.67% goes to PF Fund.
RAGHU
HR-RAMKY
From India, Bhopal
Dear Raghuram,
Thank You for your response.
I have been paying all the payments as per the details you have mentioned. However, I was making calculations on a basic wage of more than 6500 as per example in my post, which means I was depositing more than the stipulated amount.
Therefore, what i need to know now is if I can again start deducting the salary from a basic of only 6500 for the same members. And, what will happen to the extra amount that has already been paid?
Hope to hear from you soon.
Thank You
From India, Siliguri
Thank You for your response.
I have been paying all the payments as per the details you have mentioned. However, I was making calculations on a basic wage of more than 6500 as per example in my post, which means I was depositing more than the stipulated amount.
Therefore, what i need to know now is if I can again start deducting the salary from a basic of only 6500 for the same members. And, what will happen to the extra amount that has already been paid?
Hope to hear from you soon.
Thank You
From India, Siliguri
Dear Nishant, As per above your query there is no problem but employer is willing to pay they can do it. RAGHU
From India, Bhopal
From India, Bhopal
Dear Nishant ji,
Correct answers to you, are as under:
You can effect PF deduction 12% on entire Basic + DA. To contribute on more than 6500 joint request in writting to an officer not below the rank of APFC is necessary. It is a procedural part.
Employer share including of admn. charges is @ 13.61% and not @ 13.6%.
It is not a Gross Salary Rs.12,496. It is a Gross CTC.
Yes you can do it. You are requested to view my posts in below given link:
https://www.citehr.com/443348-pf-con...court-pg2.html
The amount deposited so far is not an excess amount. The amount deposited so far is accumulated in respective PF A/CS of all the employees correctly.
Hope you have no query unanswered by me.
From India, Mumbai
Correct answers to you, are as under:
You can effect PF deduction 12% on entire Basic + DA. To contribute on more than 6500 joint request in writting to an officer not below the rank of APFC is necessary. It is a procedural part.
Employer share including of admn. charges is @ 13.61% and not @ 13.6%.
It is not a Gross Salary Rs.12,496. It is a Gross CTC.
Yes you can do it. You are requested to view my posts in below given link:
https://www.citehr.com/443348-pf-con...court-pg2.html
The amount deposited so far is not an excess amount. The amount deposited so far is accumulated in respective PF A/CS of all the employees correctly.
Hope you have no query unanswered by me.
From India, Mumbai
Dear Mr. Keshav,
Thank You for you relevant response. I would further like to know:
1. If there is any procedure for now deducting the PF from Rs.6500 (any application etc. required?)
2. Is there a minimum base salary for PF deduction applicable as of date?
3. Can EPF payments be remitted into Post Office Savings Account?
From India, Siliguri
Thank You for you relevant response. I would further like to know:
1. If there is any procedure for now deducting the PF from Rs.6500 (any application etc. required?)
2. Is there a minimum base salary for PF deduction applicable as of date?
3. Can EPF payments be remitted into Post Office Savings Account?
From India, Siliguri
Dear Nishant ji,
Kindly read my response to Mr. Arthy dated 14.12.2012 in the link given earlier to you.
There is no such minimum salary limit for PF deduction under the EPF & MP Act. However, you need to make the the payment of wages / salary as per Minimum Wage Act.
No. You need to make the remittence in SBI only in EPF A/c.
From India, Mumbai
Kindly read my response to Mr. Arthy dated 14.12.2012 in the link given earlier to you.
There is no such minimum salary limit for PF deduction under the EPF & MP Act. However, you need to make the the payment of wages / salary as per Minimum Wage Act.
No. You need to make the remittence in SBI only in EPF A/c.
From India, Mumbai
Dear Mr. Keshav,
Thank you again for your timely response.
I'd like to re-phrase my ques. no. 3. Can an employee who does not have a savings account with a bank, get the EPF payments after cessation into a post office savings account?
Further, one of my employee has crossed 58 years and is still in service. I have been making all the deductions and EPF payments as before the attainment of 58 yrs. Now, should I discontinue the EPS payment/deduction, and what about the payments that has been done so far into EPS?
Thank You
From India, Siliguri
Thank you again for your timely response.
I'd like to re-phrase my ques. no. 3. Can an employee who does not have a savings account with a bank, get the EPF payments after cessation into a post office savings account?
Further, one of my employee has crossed 58 years and is still in service. I have been making all the deductions and EPF payments as before the attainment of 58 yrs. Now, should I discontinue the EPS payment/deduction, and what about the payments that has been done so far into EPS?
Thank You
From India, Siliguri
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