Dear Vikana,
Your CTC Package is 2,40000/-. Can your pf contribution calculate in your CTC? First you attach your whole CTC package than i give right answer of this question.
Because in some organisation Both side pf calculate in employees CTC.
Regards,
Hemant
9898734174
From India, Ahmadabad
Your CTC Package is 2,40000/-. Can your pf contribution calculate in your CTC? First you attach your whole CTC package than i give right answer of this question.
Because in some organisation Both side pf calculate in employees CTC.
Regards,
Hemant
9898734174
From India, Ahmadabad
hello every one, please help or guide about the calculationh of CTC. will bonus be the part of CTC? waiting for your valuable information. with regards rajnish
From India, New Delhi
From India, New Delhi
Mr. Vikna Prashad
please note that Employer's contribution to PF is part of CTC, because company is paying the contribution for saving of employee for his future need and future financial security.
So it is correct to deduct the amount of employer's contribution to PF from the CTC - package of an employee.
thanks
From India, Mumbai
24please note that Employer's contribution to PF is part of CTC, because company is paying the contribution for saving of employee for his future need and future financial security.
So it is correct to deduct the amount of employer's contribution to PF from the CTC - package of an employee.
thanks
From India, Mumbai
Subject - Re: Provident Fund Contribution - Important Query
Hello decentfriend11
EMPLOYEE DEPOSIT LINKED INSURANCE (EDLI) contribution payable by the employer, calculated @ .5% (out of 13.61%) of the employee's salary/wage(Basic +DA) and this deduction should be declared in form 6-A (Revised) in the annual return by he employer.
From India, Coimbatore
Hello decentfriend11
EMPLOYEE DEPOSIT LINKED INSURANCE (EDLI) contribution payable by the employer, calculated @ .5% (out of 13.61%) of the employee's salary/wage(Basic +DA) and this deduction should be declared in form 6-A (Revised) in the annual return by he employer.
From India, Coimbatore
hai all
really it is very useful discussion
i came to know that employer should not bear the pf amount(employer contribution) for the employees whose basic is above 6500.
my doubt is
is it necessary to give pf to those persons i.e., is it must to cut pf amount from employee's salary (employee contribution to his pf)
then what is the contribution of company towards him
is there any chance to company or employee to skip the pf after attaining the basic of 6500
please clarify it
From India, Hyderabad
really it is very useful discussion
i came to know that employer should not bear the pf amount(employer contribution) for the employees whose basic is above 6500.
my doubt is
is it necessary to give pf to those persons i.e., is it must to cut pf amount from employee's salary (employee contribution to his pf)
then what is the contribution of company towards him
is there any chance to company or employee to skip the pf after attaining the basic of 6500
please clarify it
From India, Hyderabad
Hellow All Please tell me that what is the celling amount for contributing EPF. and if the person want to deduct pf from his basic ie10000, the can he will be contribute pf??
From India, Panipat
From India, Panipat
Pl go through the below:-
Statutory
Employees Provident fund organization, India (EPFO) EPF rates and calculation
The EPF & MP (Miscellaneous provision act) act was came in to existence from March 14th 1952.The act is applicable all over India except the state of Jammu and Kashmir. Presently the following three schemes are providing to employees under this act.
1. Employee provident fund scheme (EPF) 1952.
2. Employees’ pension scheme (EPS) 1995
3. Employees deposit linked insurance (EDLIS) 1976.
An establishment with 20 or more workers should register with Employees provident fund organization which comes under any of the 180 industries mentioned. Click here for the list of industries comes under EPF. Even though there are certain exemptions are there will be discussed in another post. Here we mainly aimed for EPF rates and its calculation.
EPF, EPS, EDLIS rates in India
EPF, EPS and EDLIS are calculated on Basic salary, dearness allowances, cash value of food concession and retaining allowances if any.
“Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.”
Most of the organizations are following Basic+ DA Method. Below table tells you the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
Scheme Name Employee contribution Employer contribution Paid to A/c No
Employee provident fund 12% 3.67% 1
Employees’ Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.5% 21
EPF Administrative charges 0 1.1% 2
EDLIS Administrative charges 0 0.01% 22
Sick industries like beedi, jute, guar gum factories, coir industry other than spinning sector
Scheme Name Employee contribution Employer contribution Paid to A/c No
Employee provident fund 10% 1.67% 1
Employees’ Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.5% 21
EPF Administrative charges 0 1.1% 2
EDLIS Administrative charges 0 0.01% 22
Inspection charges payable by employer
Inspection charges must be paid by the employer in the following Cases.
1. Some establishment are exempted from EDLI contribution as they are providing the same nature of benefit without any contributions from employee, such establishments are liable to pay 0.005% on Basic salary
2. The establishments exempted under the scheme should pay 0.18% of Basic salary towards inspection charges.
EPF Ceiling Limit
EPF ceiling limit is fixed to 6500/-.The employer is liable to pay contribution only on 6500/- Whatever is the basic salary
Calculation of Employees provident fund
Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500/-
Contribution Towards Calculation Amount
EPF Employees share 3500 x 12% 420
EPS Employer share 3500 x 8.33% 292
EPF employer share 3500 x 3.67% 128
EDLI charges 3500 x 0.5% 18
EPF Admin charges 3500 x 1.1% 39
EDLI Admin charges 3500 x 0.01% 0.35 ( round up to Rs 1/-)
The above calculation is easy and there no complication.
Calculation of EPF for employees getting a basic salary over and above the ceiling limit 6500/-
In such cases companies uses different method for calculation as per their pay roll policy.
Consider an employee getting a basic salary of 7500/-
We can calculate it in different ways. The only thing you should take care is, EPS is calculated only up to 6500/- that means the maximum amount is fixed to Rs. 541.00. The three methods mentioned below are based on the above example.
Method-1
If your company consider total basic salary above the limit fixed 6500.00 for PF calculation
Contribution Towards Calculation Amount
EPF Employees share 7500 x 12% 900
EPS Employer share 6500 x 8.33% 541
EPF employer share 7500 x 12% (-) 541 359
EDLI charges 6500 x 0.5% 32.5
EPF Admin charges 6500 x 1.1% 71.5
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
I will explain how Employer contribution of EPS and EPF is calculated.
Employer is decided to contribute on total basic salary which is 12 % on 7500.00 equal to 900.00
EPS Share is fixed to 541.00
Balance (900-541) goes to EPF account 359.00
Total share 900.00
Out of Rs 900.00 EPS share is RS 541/- which is fixed for a basic salary greater than 6500/-. The balance amount is 900-541 = 359.00 which will go to EPF account.
You may be thinking that, what about 3.67%? Here you don’t need to care about it.
Method2
Some companies follows the below method in which employee share is calculated on 7500/- and employer share is calculated on up limit Rs 6500/-
Contribution Towards Calculation Amount
EPF Employees share 7500 x 12% 900
EPS Employer share 6500 x 8.33% 541
EPF employer share 6500 x 3.67% 239
EDLI charges 6500 x 0.5% 33
EPF Admin charges 6500 x 1.1% 72
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
Method3
Some are calculating both employer and employee shares on 6500/- in spite of higher basic salary than 6500.00
Contribution Towards Calculation Amount
EPF Employees share 6500 x 12% 780
EPS Employer share 6500 x 8.33% 541
EPF employer share 6500 x 3.67% 239
EDLI charges 6500 x 0.5% 33
EPF Admin charges 6500 x 1.1% 72
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
YOU CAN DOWNLOAD AN EPF CALCULATOR IN EXCEL FORMAT HERE
Remittance of contribution
It is the duty of employer to remit the contribution deducted to the government before 15th of the following month.
Employer interest Liability
Employers are liable to pay @12% interest on late payment of EPF, EPS, EDLI, Administrative charges
Damage liability
An employer is remitting EPF, EPS, EDLI, and Admin charges late shall be liable to pay damages as penalty ranging from 17% to 37% depending up on delay.
I don’t think the above post is a complete one, if you have different opinion and experience we can discuss it in our comment section that will make this post a complete one.
In the meantime you can subscribe our newsletter below to stay updated with us.
D. N . Sharma - Gurgaon HR
From India, Delhi
Statutory
Employees Provident fund organization, India (EPFO) EPF rates and calculation
The EPF & MP (Miscellaneous provision act) act was came in to existence from March 14th 1952.The act is applicable all over India except the state of Jammu and Kashmir. Presently the following three schemes are providing to employees under this act.
1. Employee provident fund scheme (EPF) 1952.
2. Employees’ pension scheme (EPS) 1995
3. Employees deposit linked insurance (EDLIS) 1976.
An establishment with 20 or more workers should register with Employees provident fund organization which comes under any of the 180 industries mentioned. Click here for the list of industries comes under EPF. Even though there are certain exemptions are there will be discussed in another post. Here we mainly aimed for EPF rates and its calculation.
EPF, EPS, EDLIS rates in India
EPF, EPS and EDLIS are calculated on Basic salary, dearness allowances, cash value of food concession and retaining allowances if any.
“Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.”
Most of the organizations are following Basic+ DA Method. Below table tells you the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
Scheme Name Employee contribution Employer contribution Paid to A/c No
Employee provident fund 12% 3.67% 1
Employees’ Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.5% 21
EPF Administrative charges 0 1.1% 2
EDLIS Administrative charges 0 0.01% 22
Sick industries like beedi, jute, guar gum factories, coir industry other than spinning sector
Scheme Name Employee contribution Employer contribution Paid to A/c No
Employee provident fund 10% 1.67% 1
Employees’ Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.5% 21
EPF Administrative charges 0 1.1% 2
EDLIS Administrative charges 0 0.01% 22
Inspection charges payable by employer
Inspection charges must be paid by the employer in the following Cases.
1. Some establishment are exempted from EDLI contribution as they are providing the same nature of benefit without any contributions from employee, such establishments are liable to pay 0.005% on Basic salary
2. The establishments exempted under the scheme should pay 0.18% of Basic salary towards inspection charges.
EPF Ceiling Limit
EPF ceiling limit is fixed to 6500/-.The employer is liable to pay contribution only on 6500/- Whatever is the basic salary
Calculation of Employees provident fund
Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500/-
Contribution Towards Calculation Amount
EPF Employees share 3500 x 12% 420
EPS Employer share 3500 x 8.33% 292
EPF employer share 3500 x 3.67% 128
EDLI charges 3500 x 0.5% 18
EPF Admin charges 3500 x 1.1% 39
EDLI Admin charges 3500 x 0.01% 0.35 ( round up to Rs 1/-)
The above calculation is easy and there no complication.
Calculation of EPF for employees getting a basic salary over and above the ceiling limit 6500/-
In such cases companies uses different method for calculation as per their pay roll policy.
Consider an employee getting a basic salary of 7500/-
We can calculate it in different ways. The only thing you should take care is, EPS is calculated only up to 6500/- that means the maximum amount is fixed to Rs. 541.00. The three methods mentioned below are based on the above example.
Method-1
If your company consider total basic salary above the limit fixed 6500.00 for PF calculation
Contribution Towards Calculation Amount
EPF Employees share 7500 x 12% 900
EPS Employer share 6500 x 8.33% 541
EPF employer share 7500 x 12% (-) 541 359
EDLI charges 6500 x 0.5% 32.5
EPF Admin charges 6500 x 1.1% 71.5
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
I will explain how Employer contribution of EPS and EPF is calculated.
Employer is decided to contribute on total basic salary which is 12 % on 7500.00 equal to 900.00
EPS Share is fixed to 541.00
Balance (900-541) goes to EPF account 359.00
Total share 900.00
Out of Rs 900.00 EPS share is RS 541/- which is fixed for a basic salary greater than 6500/-. The balance amount is 900-541 = 359.00 which will go to EPF account.
You may be thinking that, what about 3.67%? Here you don’t need to care about it.
Method2
Some companies follows the below method in which employee share is calculated on 7500/- and employer share is calculated on up limit Rs 6500/-
Contribution Towards Calculation Amount
EPF Employees share 7500 x 12% 900
EPS Employer share 6500 x 8.33% 541
EPF employer share 6500 x 3.67% 239
EDLI charges 6500 x 0.5% 33
EPF Admin charges 6500 x 1.1% 72
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
Method3
Some are calculating both employer and employee shares on 6500/- in spite of higher basic salary than 6500.00
Contribution Towards Calculation Amount
EPF Employees share 6500 x 12% 780
EPS Employer share 6500 x 8.33% 541
EPF employer share 6500 x 3.67% 239
EDLI charges 6500 x 0.5% 33
EPF Admin charges 6500 x 1.1% 72
EDLI Admin charges 6500 x 0.01% 0.65 ( Round up to Rs 1/-)
YOU CAN DOWNLOAD AN EPF CALCULATOR IN EXCEL FORMAT HERE
Remittance of contribution
It is the duty of employer to remit the contribution deducted to the government before 15th of the following month.
Employer interest Liability
Employers are liable to pay @12% interest on late payment of EPF, EPS, EDLI, Administrative charges
Damage liability
An employer is remitting EPF, EPS, EDLI, and Admin charges late shall be liable to pay damages as penalty ranging from 17% to 37% depending up on delay.
I don’t think the above post is a complete one, if you have different opinion and experience we can discuss it in our comment section that will make this post a complete one.
In the meantime you can subscribe our newsletter below to stay updated with us.
D. N . Sharma - Gurgaon HR
From India, Delhi
Dear Vikna Prakash,
This is a big scam by your company. Of course they have fooled you! If they have offered you a raise of 20%, that is your pay and the 12% to be contributed by the employer is the company's contribution.
Simple, just have the challans checked. Are they depositing 12% or 25.61%. You see the employee's contribution is 12% and the employer's contribution is 13.61%. So, if the challans show an amount equal to 12% they are defrauding the employees and the PF Department too. And that is a serious crime!!
It is also possible that they are showing the full amount as 25.61% against the salary of a lesser number of employees' total emoluments. Again a huge fraud!!!
I would recommend that you or someone write a confidential letter to the PF commissioner and alert the IT department and the police simultaneously.
If you are hesitant, send the details to me through this forum and I shall initiate action against these ROBBERS!!!!
Till then my sympathies.
Aye.
Colonel Gahlot
Proprietor, 'TRURECRUIT'
09810081197
From India, Delhi
This is a big scam by your company. Of course they have fooled you! If they have offered you a raise of 20%, that is your pay and the 12% to be contributed by the employer is the company's contribution.
Simple, just have the challans checked. Are they depositing 12% or 25.61%. You see the employee's contribution is 12% and the employer's contribution is 13.61%. So, if the challans show an amount equal to 12% they are defrauding the employees and the PF Department too. And that is a serious crime!!
It is also possible that they are showing the full amount as 25.61% against the salary of a lesser number of employees' total emoluments. Again a huge fraud!!!
I would recommend that you or someone write a confidential letter to the PF commissioner and alert the IT department and the police simultaneously.
If you are hesitant, send the details to me through this forum and I shall initiate action against these ROBBERS!!!!
Till then my sympathies.
Aye.
Colonel Gahlot
Proprietor, 'TRURECRUIT'
09810081197
From India, Delhi
Dear All.
this for PF & EPF deduction
Employees Provident fund organization, India (EPFO) EPF rates and calculation
28 SEPTEMBER 2009 17 COMMENTS
The EPF & MP (Miscellaneous provision act) act was came in to existence from March 14th 1952.The act is applicable all over India except the state of Jammu and Kashmir. Presently the following three schemes are providing to employees under this act.
1. Employee provident fund scheme (EPF) 1952.
2. Employees’ pension scheme (EPS) 1995
3. Employees deposit linked insurance (EDLIS) 1976.
An establishment with 20 or more workers should register with Employees provident fund organization which comes under any of the 180 industries mentioned. Click here for the list of industries comes under EPF. Even though there are certain exemptions are there will be discussed in another post. Here we mainly aimed for EPF rates and its calculation.
EPF, EPS, EDLIS rates in India
EPF, EPS and EDLIS are calculated on Basic salary, dearness allowances, cash value of food concession and retaining allowances if any.
“Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.”
Most of the organizations are following Basic+ DA Method. Below table tells you the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
Scheme Name Employee contribution Employer contribution Paid to A/c No
Employee provident fund 12% 3.67% 1
Employees’ Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.5% 21
EPF Administrative charges 0 1.1% 2
EDLIS Administrative charges 0 0.01% 22
Sick industries like beedi, jute, guar gum factories, coir industry other than spinning sector
Scheme Name Employee contribution Employer contribution Paid to A/c No
Employee provident fund 10% 1.67% 1
Employees’ Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.5% 21
EPF Administrative charges 0 1.1% 2
EDLIS Administrative charges 0 0.01% 22
Inspection charges payable by employer
Inspection charges must be paid by the employer in the following Cases.
1. Some establishment are exempted from EDLI contribution as they are providing the same nature of benefit without any contributions from employee, such establishments are liable to pay 0.005% on Basic salary
2. The establishments exempted under the scheme should pay 0.18% of Basic salary towards inspection charges.
EPF Ceiling Limit
EPF ceiling limit is fixed to 6500/-.The employer is liable to pay contribution only on 6500/- Whatever is the basic salary
Calculation of Employees provident fund
Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500/-
Contribution Towards Calculation Amount
EPF Employees share 3500 x 12% 420
EPS Employer share 3500 x 8.33% 292
EPF employer share 3500 x 3.67% 128
EDLI charges 3500 x 0.5% 18
EPF Admin charges 3500 x 1.1% 39
EDLI Admin charges 3500 x 0.01% 0.35 ( round up to Rs 1/-)
The above calculation is easy and there no complication
D N Sharma ( Manager _ HR & Admin.) Gurgaon.
From India, Delhi
this for PF & EPF deduction
Employees Provident fund organization, India (EPFO) EPF rates and calculation
28 SEPTEMBER 2009 17 COMMENTS
The EPF & MP (Miscellaneous provision act) act was came in to existence from March 14th 1952.The act is applicable all over India except the state of Jammu and Kashmir. Presently the following three schemes are providing to employees under this act.
1. Employee provident fund scheme (EPF) 1952.
2. Employees’ pension scheme (EPS) 1995
3. Employees deposit linked insurance (EDLIS) 1976.
An establishment with 20 or more workers should register with Employees provident fund organization which comes under any of the 180 industries mentioned. Click here for the list of industries comes under EPF. Even though there are certain exemptions are there will be discussed in another post. Here we mainly aimed for EPF rates and its calculation.
EPF, EPS, EDLIS rates in India
EPF, EPS and EDLIS are calculated on Basic salary, dearness allowances, cash value of food concession and retaining allowances if any.
“Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.”
Most of the organizations are following Basic+ DA Method. Below table tells you the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
Scheme Name Employee contribution Employer contribution Paid to A/c No
Employee provident fund 12% 3.67% 1
Employees’ Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.5% 21
EPF Administrative charges 0 1.1% 2
EDLIS Administrative charges 0 0.01% 22
Sick industries like beedi, jute, guar gum factories, coir industry other than spinning sector
Scheme Name Employee contribution Employer contribution Paid to A/c No
Employee provident fund 10% 1.67% 1
Employees’ Pension scheme 0 8.33% 10
Employees Deposit linked insurance 0 0.5% 21
EPF Administrative charges 0 1.1% 2
EDLIS Administrative charges 0 0.01% 22
Inspection charges payable by employer
Inspection charges must be paid by the employer in the following Cases.
1. Some establishment are exempted from EDLI contribution as they are providing the same nature of benefit without any contributions from employee, such establishments are liable to pay 0.005% on Basic salary
2. The establishments exempted under the scheme should pay 0.18% of Basic salary towards inspection charges.
EPF Ceiling Limit
EPF ceiling limit is fixed to 6500/-.The employer is liable to pay contribution only on 6500/- Whatever is the basic salary
Calculation of Employees provident fund
Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500/-
Contribution Towards Calculation Amount
EPF Employees share 3500 x 12% 420
EPS Employer share 3500 x 8.33% 292
EPF employer share 3500 x 3.67% 128
EDLI charges 3500 x 0.5% 18
EPF Admin charges 3500 x 1.1% 39
EDLI Admin charges 3500 x 0.01% 0.35 ( round up to Rs 1/-)
The above calculation is easy and there no complication
D N Sharma ( Manager _ HR & Admin.) Gurgaon.
From India, Delhi
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Provident fund.zip
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