Pf Deduction On Lop

abbasiti
Dear friends,
I was away from CiteHR for the last two days. Hence I am unable to notice the above discussions.
If salary is above ceiling limit, the employer will have two options to contibute to EPF.
1. To contribute on ceiling salary. Then contribution for one month will be 15000x12% = 1800/- and for 18 days (out of 31),it is 1800x18/31 = 1045.
2. To contribute on actual salary with the consent of the employee. Then contribution for one month is 22000x12% = 2640/- and for 18 days (out of 31),it is 2640x18/31 = 1533.
But the initial query is very specific on contribution on ceiling salary. Then why there is room for confusion.
Abbas.P.S
harishcbansal
Dear Rajasreepmanoj
You should use first option. basic =22000/31*18=12774 then PF = 12774*.12=1533.
Because as per EPF Act, Contribution will be Rs 1800/- or Actual deduction which is lower.
abbasiti
Dear Harishcbansal,
The above statement is incorrect. If you have different opinion, kindly quote the above act as per your posting.
Abbas.P.S
vandita sawhney
Basic 22000/- PF deposit = 1800 /- i.e. 12 % 15000/- ( as per P F limit)
18 days PF will be calculated on the Basic of 18 Days.
abbasiti
Even though salary is Rs. 22000, PF payment is being done on a salary of Rs.15000. Hence Rs. 1800 (@12%) is paid to PF. If the attendance is 18, rest of the 13 days has to be recorded as NCP (non contributory period). Then how it is possible to pay 22000x18/31x12%?
I request my friends that if you are not thorough on the provisions of the act, kindly don't misguide the others.
shubhamsharma238@gmail.com
Dear Concern,
The PF Amount always been deducted on the net earning.
Now the restriction of PF ded. on Salary(Basic+Da) is 15000.It means that 15000 wold be your (basic +da).
It means that you are not bound to deduct the pf above this.
So if you talk about salary cal. you can make according to 15000.
If his Basic is 15000 then the pf would be on 15000
i.e. 15000*18/31=8710 Salary (Basic)
PF Amount is on Calculated 12% of 8710 i.e.=1045
Case 2-
If his Basic is 22000 according to you then the calculation would be
22000*18/31=12774
PF would be on 12774 i.e.=1533 rs/-
Thanks
Shubham
Ramesh_V
Maximum Ceiling limit of Salary for PF Rs.15,000 wef 01.09.2014. If Basic+DA exceeds Rs.15,000 then contribution is optional.
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