PF Contribution
The Company has no right to force the employees to join the PF contribution those who are getting more than Rs 6500. Maximum ceiling of PF amount is Rs 6500. It is a very good effort taken by the Management but I do not know why the employees are not intrested? It is very useful sceheme for long term basis.
MANOKAVIN
From India, Coimbatore
5The Company has no right to force the employees to join the PF contribution those who are getting more than Rs 6500. Maximum ceiling of PF amount is Rs 6500. It is a very good effort taken by the Management but I do not know why the employees are not intrested? It is very useful sceheme for long term basis.
MANOKAVIN
From India, Coimbatore
Dear Friend,
If any employees is drawing basic salary more than Rs. 6500/- and joining first time under PF scheme than only he/she can have a option of getting exemption from deduction of PF. Once you are member of PF than it is mandatory for employer to deduct pf even if your basic salary is more than 6500/-.
Nitin
From India, Pune
If any employees is drawing basic salary more than Rs. 6500/- and joining first time under PF scheme than only he/she can have a option of getting exemption from deduction of PF. Once you are member of PF than it is mandatory for employer to deduct pf even if your basic salary is more than 6500/-.
Nitin
From India, Pune
Dear Bhanu Pratap Singh,
Don't Think how implement PF contribution forgefully,
First explain the benefits which they get from PF and as well Income Tax.
Try to convence the employees.
i wish you all the best.
From India, Hyderabad
Don't Think how implement PF contribution forgefully,
First explain the benefits which they get from PF and as well Income Tax.
Try to convence the employees.
i wish you all the best.
From India, Hyderabad
Dear All,
As per P.F Act under section 2(b) and 6. Any employee who's salary (Basic wages+Dearness Allowance+Retaining Allowance) is less than or equal to Rs.6500/- per month.Employer and employee contributions (12% Both)should be deposit in their respective Establishment P.F.Code.
If any employee who's salary(Basic wages+Dearness Allowance+Retaining Allowance) is greater than Rs.6500/- per month. There is no need to deduct P.f. contribution. It is optional. If employee and employer both are agree to contribute in P.F.they can do.
If employer is deducting P.F. contribution forcefully. Employee should approach HRD Manager or Admin Head. It is his responsibility to convince The Management that we should not try to deduct forcefully, otherwise it will create legal complication.
Deepak Raj
New Delhi
As per P.F Act under section 2(b) and 6. Any employee who's salary (Basic wages+Dearness Allowance+Retaining Allowance) is less than or equal to Rs.6500/- per month.Employer and employee contributions (12% Both)should be deposit in their respective Establishment P.F.Code.
If any employee who's salary(Basic wages+Dearness Allowance+Retaining Allowance) is greater than Rs.6500/- per month. There is no need to deduct P.f. contribution. It is optional. If employee and employer both are agree to contribute in P.F.they can do.
If employer is deducting P.F. contribution forcefully. Employee should approach HRD Manager or Admin Head. It is his responsibility to convince The Management that we should not try to deduct forcefully, otherwise it will create legal complication.
Deepak Raj
New Delhi
Maximum salary Limit is Rs.6500/- as per P.F Act., if you draw more than that also P.F Amount will be deducted on Rs.6500/-only. If Employer is willing to pay more than Rs.6500/- also Pf can be deducted.all the employees covered under PF are eligible for pension and in case of any unnatural event, family gets the pension for their survival. IncomeTax exemption etc.,
From India, Mumbai
From India, Mumbai
I would like to add that PF has got three parts a) Provident Fund - In which the Employees' 12% contribution + employers' 3.67% contribution goes. b) Pension Scheme- In which Employer's 8.33% of contribution goes upto a max of RS 541 p.m (this can fetch a max. pension of Rs 3250 on Superannuation & c) EDLI - which is made out of Employer's contribution only & provides insurance of Rs 65000 (some companies have taken EDL Insurance with Life Insurers and provide cocverage of upto Rs 1.25 lakhs). Please note that all of these cannot be attached under any decree or order of any Court
To sum up
1) PF- provides a lumpsum tax-free kitty at the time of superannuation
2 The returns are also risk free as they are guaranteed by Government
3) It provides monthly pension at the time of retirement (and family/ widow pension in the unfortunate event of passing away of the employee)
4) It also provides insurance
5) Contribution to PF can also be claimed for IT deduction
6) A member of PF can also seek Advances as and when the need arises like during child's education, marriage , etc
I would strongly recommend that all your employees should join PF and it is an excellent step by your Management for the Welfare of employees
To sum up
1) PF- provides a lumpsum tax-free kitty at the time of superannuation
2 The returns are also risk free as they are guaranteed by Government
3) It provides monthly pension at the time of retirement (and family/ widow pension in the unfortunate event of passing away of the employee)
4) It also provides insurance
5) Contribution to PF can also be claimed for IT deduction
6) A member of PF can also seek Advances as and when the need arises like during child's education, marriage , etc
I would strongly recommend that all your employees should join PF and it is an excellent step by your Management for the Welfare of employees
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf