21
Dear friends, Can any one pls confirm the pf insurance increase from 1.5 lakhs to 3.5lakhs.effective date. Since one of my associate had passed away on August 14. Thanks in advance.
From India, Madras
From India, Madras
I am new to this forum. I want to know what are the new rules government has implemented on PF and what is the process of withdrawal...
From India, Noida
From India, Noida
Dear Experts, If the Employer has not accepted to revise the Employee salary after PF ceiling limit enhancement. The home taking salary will be less. Then what is remedy ? Regards, PBS KUMAR
From India, Kakinada
From India, Kakinada
Sarita,
Below listed points are the changes made regarding the Employee Provident Fund.
1). Minimum threshold has been raised to 15000 from 6500. Current members who are limiting their monthly contributions to Provident Funds to a minimum salary range of Rs 6,500(Rs. 780/-) will now have to contribute at least to a salary range of Rs 15,000(Rs. 1800/-).
2). It becomes mandatory for all employees with salary upto 15000 to maintain pf accounts.
3). 12% of PF wages(BP+DA) goes as employee contribution to Employee Provident fund account.
4). Employer Contribution(12%)
8.33%(of BP+DA) to Employee pension scheme
Balance i.e. 3.67% goes to the Employee Provident fund
5). Apart from the PF contribution, the Employer has to bear Admin charges which includes
a) 1.10% of basic (Administration Charges)
b). 0.5% of basic (Employee Developed Linked Insurance Charges)
c). 1.01% of basic (Employee Developed Linked Insurance Charges)
6). Minimum contribution for employees with salary upto Rs. 15000/- has increased for both employee and employer. (i.e. 12% of 15000 = 1800)
7). Employees who became members in PF post 1st september 2014 and having PF wages(BP+DA) greater than Rs. 15000/- cannot become a member in the pension scheme. Such employees' whole employer contribution(12%) would be absorbed into the PF itself.
8). The new pension scheme is w.e.f September 1, 2014.
Hope this helps.
Vineeth.
From India, Ernakulam
Below listed points are the changes made regarding the Employee Provident Fund.
1). Minimum threshold has been raised to 15000 from 6500. Current members who are limiting their monthly contributions to Provident Funds to a minimum salary range of Rs 6,500(Rs. 780/-) will now have to contribute at least to a salary range of Rs 15,000(Rs. 1800/-).
2). It becomes mandatory for all employees with salary upto 15000 to maintain pf accounts.
3). 12% of PF wages(BP+DA) goes as employee contribution to Employee Provident fund account.
4). Employer Contribution(12%)
8.33%(of BP+DA) to Employee pension scheme
Balance i.e. 3.67% goes to the Employee Provident fund
5). Apart from the PF contribution, the Employer has to bear Admin charges which includes
a) 1.10% of basic (Administration Charges)
b). 0.5% of basic (Employee Developed Linked Insurance Charges)
c). 1.01% of basic (Employee Developed Linked Insurance Charges)
6). Minimum contribution for employees with salary upto Rs. 15000/- has increased for both employee and employer. (i.e. 12% of 15000 = 1800)
7). Employees who became members in PF post 1st september 2014 and having PF wages(BP+DA) greater than Rs. 15000/- cannot become a member in the pension scheme. Such employees' whole employer contribution(12%) would be absorbed into the PF itself.
8). The new pension scheme is w.e.f September 1, 2014.
Hope this helps.
Vineeth.
From India, Ernakulam
Thanks Vineeth,
your reply was very helpful. I am little confused about the amount of 6500 and 15000. Is it our basic salary of our CTC or Is it our complete salary amount per month.
Because according to my knowledge PF is always 12% of our basic salary of every month.
From India, Noida
your reply was very helpful. I am little confused about the amount of 6500 and 15000. Is it our basic salary of our CTC or Is it our complete salary amount per month.
Because according to my knowledge PF is always 12% of our basic salary of every month.
From India, Noida
Sarita,
It's not the CTC. It's actually the Basic+DA for some companies, while others just limit it to 'Basic Pay' alone. In fact it depends on your company policies. That means if there is no payment to me from company under the salary head 'DA' then only the basic pay is considered for provident fund. However the withdrawal policies for both PF and pension are kept the same as much as I know.
Also kindly refer to the various court verdicts that have been out regarding the same(BP+DA case conflicts between employees and companies).
Hope this serves.
From India, Ernakulam
It's not the CTC. It's actually the Basic+DA for some companies, while others just limit it to 'Basic Pay' alone. In fact it depends on your company policies. That means if there is no payment to me from company under the salary head 'DA' then only the basic pay is considered for provident fund. However the withdrawal policies for both PF and pension are kept the same as much as I know.
Also kindly refer to the various court verdicts that have been out regarding the same(BP+DA case conflicts between employees and companies).
Hope this serves.
From India, Ernakulam
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.
HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls