1
This has reference to the above said conversation regarding P.F. liability of employer to whom, who are getting salary more than P.F. Slab. I wish to present my views in this regard as follows:
An employee becomes the member of E.P.F. at the time of his joining on getting Rs. 6000/- PM (Basic+DA) and he will remain the P.F. member even after exceeding his salary more than P.F. Slab and employer will contribution only on 6500/- or according to, which is stated in "Standing Orders".
But employer is not bound to pay his P.F. share towards the excluded employees, who joined the organization @ 7000/- PM (Basic+DA). This is company policy and is applicable to all employees who come under its criteria. Nobody is to be treated as special case.
Thanks & Regards,
Deepak Behl
From India, Kolkata
An employee becomes the member of E.P.F. at the time of his joining on getting Rs. 6000/- PM (Basic+DA) and he will remain the P.F. member even after exceeding his salary more than P.F. Slab and employer will contribution only on 6500/- or according to, which is stated in "Standing Orders".
But employer is not bound to pay his P.F. share towards the excluded employees, who joined the organization @ 7000/- PM (Basic+DA). This is company policy and is applicable to all employees who come under its criteria. Nobody is to be treated as special case.
Thanks & Regards,
Deepak Behl
From India, Kolkata
I think different matters abe being mixed up, causing you a lot of confusion.
The law requires the employer to pay his share of of contribution of 12% plus administration charges on the actual salary subject to a salary ceiling of rs. 6500 per month.
Where the salary exceeds 6500 per month, the PF contribution will be computed as if the salary is rs. 6500 per month.
(Here salary means basic + da only)
If an employee joins the employment at a salary of more than 6500 (joining salary), and does not have a previous active PF account, then the employee has an option of intimating to the employer that he wishes to be exempt from PF. Only in such cases, the employer is exempt from his contribution. In all other cases, he has to pay the same.
From India, Mumbai
The law requires the employer to pay his share of of contribution of 12% plus administration charges on the actual salary subject to a salary ceiling of rs. 6500 per month.
Where the salary exceeds 6500 per month, the PF contribution will be computed as if the salary is rs. 6500 per month.
(Here salary means basic + da only)
If an employee joins the employment at a salary of more than 6500 (joining salary), and does not have a previous active PF account, then the employee has an option of intimating to the employer that he wishes to be exempt from PF. Only in such cases, the employer is exempt from his contribution. In all other cases, he has to pay the same.
From India, Mumbai
Employer need not contribute on wages exceeding Rs 6500/pm.His contribution is limited to13.61% of 6500/-
It is not the judgement or 'standing orders' which prescribe this .It is para 26-A(2) of PF scheme which limits the employers contribution.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
It is not the judgement or 'standing orders' which prescribe this .It is para 26-A(2) of PF scheme which limits the employers contribution.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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.
EPF Higher Wages from Employer's end.xlsx
EPF ON LINE REGN. USER MANUAL.pdf