Dear Sir
let me suggest on below example of calculation
Basic is 10000/-
EXP: 1)
A) EMPLOYEE = 12% = 1200/-
B) EMPLYOER = 8.33% TOWARD PENSION ON 6500/- BASIC = 541/-
AND TOWARDS PF = (1200-541) = 659 /-
THUS TOTAL OF EMPLYOER = 541+659 = 1200/-
------------------------------------------------------------------
EXP: 2)
A) EMPLOYEE = 12% = 1200/-
B) EMPLYOER = 8.33% TOWARD PENSION ON 6500/- BASIC = 541/-
AND TOWARDS PF 3.67% ON 6500 = 239 /-
THUS TOTAL OF EMPLYOER = 541+239 = 780/-
-------------------------------------------------------
whICH eXAMPLE iS cORRECT ?
fROM
RAJU SHRINAME
From India, Chicalim
5let me suggest on below example of calculation
Basic is 10000/-
EXP: 1)
A) EMPLOYEE = 12% = 1200/-
B) EMPLYOER = 8.33% TOWARD PENSION ON 6500/- BASIC = 541/-
AND TOWARDS PF = (1200-541) = 659 /-
THUS TOTAL OF EMPLYOER = 541+659 = 1200/-
------------------------------------------------------------------
EXP: 2)
A) EMPLOYEE = 12% = 1200/-
B) EMPLYOER = 8.33% TOWARD PENSION ON 6500/- BASIC = 541/-
AND TOWARDS PF 3.67% ON 6500 = 239 /-
THUS TOTAL OF EMPLYOER = 541+239 = 780/-
-------------------------------------------------------
whICH eXAMPLE iS cORRECT ?
fROM
RAJU SHRINAME
From India, Chicalim
Dear Raju,
Example 1 is right. employee contribution is 12% , what ever may be the basic he is earning.
as per pf act employer has to contribute 8.33% or 541 (whichever is less) towards Pension and the rest of the amount goes to pf account. i.e employer contribution is also equal to that of employees contribution. additional to these contribution employer has to bear the admin charges as per the pf act.
From India, Gurgaon
Example 1 is right. employee contribution is 12% , what ever may be the basic he is earning.
as per pf act employer has to contribute 8.33% or 541 (whichever is less) towards Pension and the rest of the amount goes to pf account. i.e employer contribution is also equal to that of employees contribution. additional to these contribution employer has to bear the admin charges as per the pf act.
From India, Gurgaon
Ex-2 is correct, the difference between employer and employee contribution i.e(Rs1200 -Rs.780 = Rs420) is treated as volantory contribution on the employee.
From India, Hubli
From India, Hubli
Hi,
Please be note that it is not compulsory employer has to contribute 12% of basic as equal to the employee's share if Basic is more than Rs. 6500/-. Employer can contribute only for the limitation amount of Rs. 6500/-.
- Out of which, 8.33% of employer contribution goes to the Pension Scheme.
- the balance % will go to the PF
- As per your example, Employee will contribute Rs. 1200/- towards his PF deduction & employer will contribute only Rs. 780/-.
From India, Chennai
Please be note that it is not compulsory employer has to contribute 12% of basic as equal to the employee's share if Basic is more than Rs. 6500/-. Employer can contribute only for the limitation amount of Rs. 6500/-.
- Out of which, 8.33% of employer contribution goes to the Pension Scheme.
- the balance % will go to the PF
- As per your example, Employee will contribute Rs. 1200/- towards his PF deduction & employer will contribute only Rs. 780/-.
From India, Chennai
If Basic is more than Rs. 6500/- employee may contribute 12% on basic or 780/-. but Employer can contribute only for the limitation amount of 780/- (12% on Rs. 6500/-) regards M Srinivasa Rao
From India, Hyderabad
From India, Hyderabad
Dear Sir,
i have doubt regading PF if employee basic is 25000/- if he interested to increase his Pf amount upto how much percentage he can increase and on which basis whether he can increse on what he is getting basic on that or 6500/-
From India, Bangalore
i have doubt regading PF if employee basic is 25000/- if he interested to increase his Pf amount upto how much percentage he can increase and on which basis whether he can increse on what he is getting basic on that or 6500/-
From India, Bangalore
Hi,
its not must for employee to fix the ceiling. he can contribute for whole basic(i.e.10000) r for 6500 and even he can make voluntary contribution(i.e. 12% + 12%) from his side.
But its must for the employer to pay his contribution on ceiling amount (i.e. 6500) along with the admin charges. its not mandatory to contribute on the whole basic pay if the basic is more than 6500. this is wat pf act says.
And even we can exempt those employer as higher salary people under the instructions from the regional pf office.
From India, Coimbatore
its not must for employee to fix the ceiling. he can contribute for whole basic(i.e.10000) r for 6500 and even he can make voluntary contribution(i.e. 12% + 12%) from his side.
But its must for the employer to pay his contribution on ceiling amount (i.e. 6500) along with the admin charges. its not mandatory to contribute on the whole basic pay if the basic is more than 6500. this is wat pf act says.
And even we can exempt those employer as higher salary people under the instructions from the regional pf office.
From India, Coimbatore
Dear Mr. Santosh,
Please be informed that employee can contribute up to the limitation of 88% of basic (apart from the statutory contribution of 12%), but it is subject to the conditions stated under the Payment of Wages Act. As per the PoW Act, the overall deductions should not be more than 50% of Gross Salary.
From India, Chennai
Please be informed that employee can contribute up to the limitation of 88% of basic (apart from the statutory contribution of 12%), but it is subject to the conditions stated under the Payment of Wages Act. As per the PoW Act, the overall deductions should not be more than 50% of Gross Salary.
From India, Chennai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf