Hi everyone,
Can you help me what is the percentage for PF deduction in any company show follow. Where can learn more on PF deductions exactly because in our company we are going to implement PF from next month onwards. So kindly let me about about PF deductions.
Thanks & Regards
Mrudula
From India, Hyderabad
7Can you help me what is the percentage for PF deduction in any company show follow. Where can learn more on PF deductions exactly because in our company we are going to implement PF from next month onwards. So kindly let me about about PF deductions.
Thanks & Regards
Mrudula
From India, Hyderabad
You can learn everything about it, just explore CiteHR.... and after that if need any guidance.. can contact....
From India, Jaipur
From India, Jaipur
Hi Mrudula,
PF is a both-side contribution meaning that
Employer contributes 12% of basic + da.
This is wholly employer's contribution and is to be paid out of companies expenses.
Above the 12% contribution which goes to PF and Pension Account (8.33% to Pension fund and 3.67% to PF fund) the employer is to pay admin charges on PF account and also pay a percent on insurance policy.
Employee contribution -
Employer is deduct employee's contribution from his/her salary.
Employee is to contribute min 12% of basic + da and he can voluntarily increase his/her share up to a maximum of 20%
Whole of his contribution goes to PF fund.
Also note that a company is covered under PF act once it employs more than 20 employees.
Even if the employment at a later stage drops below 20, the firm is said to be still covered under PF Act, once it is covered.
Similarly, an employee can be covered under PF Act only if his/her basic + da is less than 6500.
However, if he gets an increment, he still is covered under the pf act and contribution is to be made on 6500.
Once an employee is covered under PF Act, he continues to be covered even if he changes his employment (unless the new employment is not covered under PF Act)
For more clarifications, you can visit the following discussions -
https://www.citehr.com/232866-provid...pf-number.html
https://www.citehr.com/455974-no-emp...f-company.html
From India, Mumbai
PF is a both-side contribution meaning that
Employer contributes 12% of basic + da.
This is wholly employer's contribution and is to be paid out of companies expenses.
Above the 12% contribution which goes to PF and Pension Account (8.33% to Pension fund and 3.67% to PF fund) the employer is to pay admin charges on PF account and also pay a percent on insurance policy.
Employee contribution -
Employer is deduct employee's contribution from his/her salary.
Employee is to contribute min 12% of basic + da and he can voluntarily increase his/her share up to a maximum of 20%
Whole of his contribution goes to PF fund.
Also note that a company is covered under PF act once it employs more than 20 employees.
Even if the employment at a later stage drops below 20, the firm is said to be still covered under PF Act, once it is covered.
Similarly, an employee can be covered under PF Act only if his/her basic + da is less than 6500.
However, if he gets an increment, he still is covered under the pf act and contribution is to be made on 6500.
Once an employee is covered under PF Act, he continues to be covered even if he changes his employment (unless the new employment is not covered under PF Act)
For more clarifications, you can visit the following discussions -
https://www.citehr.com/232866-provid...pf-number.html
https://www.citehr.com/455974-no-emp...f-company.html
From India, Mumbai
I will suggest that instead of gathering complete information about the implementation of the EPF Act, from others who may provide information in piecemeal , better you contact the local PF office and implement the Act provisions as per legal requirements in order to avoid any complication later on. Also to browse the website of EPFO ,To save time and for exact other statutory provisions to be implemented after coverage.
However any specific query can be got resolved through these columns
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
However any specific query can be got resolved through these columns
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
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