Dear All,
Please help in capturing an idea for having th maximum PF contibution which an organization can consider for their employees as per thier employee's wish.
Please suggest in the maximum ways which we can consider as do we have to change the Basic Salary of the employee or in some other ways.
Thanks is Advance!
From India, Mumbai
Please help in capturing an idea for having th maximum PF contibution which an organization can consider for their employees as per thier employee's wish.
Please suggest in the maximum ways which we can consider as do we have to change the Basic Salary of the employee or in some other ways.
Thanks is Advance!
From India, Mumbai
Hi,
The maximum PF that an organization can pay to its employees should not be more than 12% of an employees' basic salary +DA. However, as per the PF act an organization is bound to contribute 12% of basic salary to the maximum of Rs. 6500/- pm which is equal to 12%xRs. 6500 = Rs. 780/-
Any contribution beyond Rs. 780/- towards PF is completely optional at the will of an organization. You may increase the basic salary of the employees' for the purpose of giving more PF in employees pocket.
Seniors please correct me if I am wrong.
Regards,
Kriti
From India, Delhi
1The maximum PF that an organization can pay to its employees should not be more than 12% of an employees' basic salary +DA. However, as per the PF act an organization is bound to contribute 12% of basic salary to the maximum of Rs. 6500/- pm which is equal to 12%xRs. 6500 = Rs. 780/-
Any contribution beyond Rs. 780/- towards PF is completely optional at the will of an organization. You may increase the basic salary of the employees' for the purpose of giving more PF in employees pocket.
Seniors please correct me if I am wrong.
Regards,
Kriti
From India, Delhi
12% of Rs 6500 is the mandatory contribution payable by the employer. But if the employer is willing to contribute on a higher salary, then there is no bar for that. Similarly, an employee is free to make any percentage higher than 12% as his share of contribution and that may extend upto 100% of his salary.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Hi
i have a query related to the Contribution regarding PF, Is it possible that the employer is ready to Contribute the Employer part of PF(13.61%) over more than the 6500 Basic+DA, But the Employee wants to deduct the Contribution(12%) Only over 6500 Basic+DA, not more than 6500 Basic+DA.
Is it Possible?
Seniors Please Suggest....
From India, Chandigarh
i have a query related to the Contribution regarding PF, Is it possible that the employer is ready to Contribute the Employer part of PF(13.61%) over more than the 6500 Basic+DA, But the Employee wants to deduct the Contribution(12%) Only over 6500 Basic+DA, not more than 6500 Basic+DA.
Is it Possible?
Seniors Please Suggest....
From India, Chandigarh
Many of us would have seen a reverse of the case, ie, employee willing to contribute on a higher amount than Rs 6500 and the employer restricting his contribution to Rs 6500. Anyway, in the present case,there is no illegality and the employee can write to employer that his contribution shall be restricted to Rs 780 and whereas the employer is free to contribute on actual salary.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Mr. Madhu,
One of our employee has been given an increment of Rs.2000/- from July onwards. Now he wants to deposit this amount as his PF Contribution, i.e. more than 12%. Can anyone increase his employee share in mid time?
Please suggest.
Regards.
M. Rajesh
From India, Bhopal
One of our employee has been given an increment of Rs.2000/- from July onwards. Now he wants to deposit this amount as his PF Contribution, i.e. more than 12%. Can anyone increase his employee share in mid time?
Please suggest.
Regards.
M. Rajesh
From India, Bhopal
As per payment of wages act maximum deduction not excedd more than 40% of actual wages. let me correct, if i am wrong. krunal shah
From India, Vadodara
From India, Vadodara
We can increase the contribution in the mid period, no problem.
Though Payment of Wages Act, 1936, restricts that total deduction in any wage period should not exceed 50% of the total wage payable to him for that period, section 7(4) of the Act says that nothing in this section (section 7 pertaining to deduction from salary) prevents an employer from recovering or contributing from the salary under any law in force. Provident Fund Act has not put any restriction on contribution and as such one can contribute any amount and his act of contributing is purely at his own will and interest. Moreover, if section 7(3)(ii) which tells about maximum of 50% deduction is taken for granted, then the employer may not be able to deduct more than 50% even if the employee has not attended the office or is on leave without pay for the full month. Therefore, that section is to be read along with other counter sections of other laws in force.
Regards,
Madhu.T.K
From India, Kannur
Though Payment of Wages Act, 1936, restricts that total deduction in any wage period should not exceed 50% of the total wage payable to him for that period, section 7(4) of the Act says that nothing in this section (section 7 pertaining to deduction from salary) prevents an employer from recovering or contributing from the salary under any law in force. Provident Fund Act has not put any restriction on contribution and as such one can contribute any amount and his act of contributing is purely at his own will and interest. Moreover, if section 7(3)(ii) which tells about maximum of 50% deduction is taken for granted, then the employer may not be able to deduct more than 50% even if the employee has not attended the office or is on leave without pay for the full month. Therefore, that section is to be read along with other counter sections of other laws in force.
Regards,
Madhu.T.K
From India, Kannur
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.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf