Hi,
We contribute 12% towards PF, out of which 8.33% goes to the pension and the rest to PF. We can withdraw the PF amount when we leave the organization, but what about the pension amount? How do we get that? Do we receive the pension amount when we leave, or what is done with that amount? Does it remain with the organization or is it paid out to the employee?
Thank you.
From India, Mumbai
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1We contribute 12% towards PF, out of which 8.33% goes to the pension and the rest to PF. We can withdraw the PF amount when we leave the organization, but what about the pension amount? How do we get that? Do we receive the pension amount when we leave, or what is done with that amount? Does it remain with the organization or is it paid out to the employee?
Thank you.
From India, Mumbai
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Your query is a subject matter under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, and Schemes. Actually, the employee's contribution (Your contribution) goes to your P.F. Account. Out of the matching contribution given by the employer, 8.33% subject to a maximum of Rs. 541/- is diverted towards the Employees' Pension Scheme under the Act. This amount is deposited by the employer every month with the Regional P.F. Commissioner of your area.
Upon your transfer or on joining another organization which is covered under the Act, you should get the amount transferred to the nearest RPFC by filling up the relevant form (Form 13-A-Revised). The pension under the scheme is payable on attaining the age of 58, even though you may be serving in your organization beyond this age, say up to 60 years.
Ashok
From India, Bhubaneswar
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Upon your transfer or on joining another organization which is covered under the Act, you should get the amount transferred to the nearest RPFC by filling up the relevant form (Form 13-A-Revised). The pension under the scheme is payable on attaining the age of 58, even though you may be serving in your organization beyond this age, say up to 60 years.
Ashok
From India, Bhubaneswar
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Hello Ashok, It seems to be the you are right person to clarify my doubt!!! Actually my doubt is like what is the diffference between CTC & gross pay? Regards, Joshi
From India, Hyderabad
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From India, Hyderabad
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Dear Joshi,
Thanks for the compliment. I am not a compensation expert, but let me try to shed some light on this.
CTC or Cost to the Company is an inclusive concept. It includes, besides the gross pay, several other cost components that the employer incurs on its manpower. Costs incurred towards pension contributions, EL encashment, Gratuity, etc., which are not paid out to the individual employee on a regular basis but are nevertheless borne by the employer, are instances of CTC. Net pay is the actual amount or the cash in hand that you get after the applicable deductions.
Ashok
From India, Bhubaneswar
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Thanks for the compliment. I am not a compensation expert, but let me try to shed some light on this.
CTC or Cost to the Company is an inclusive concept. It includes, besides the gross pay, several other cost components that the employer incurs on its manpower. Costs incurred towards pension contributions, EL encashment, Gratuity, etc., which are not paid out to the individual employee on a regular basis but are nevertheless borne by the employer, are instances of CTC. Net pay is the actual amount or the cash in hand that you get after the applicable deductions.
Ashok
From India, Bhubaneswar
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Subject: Inquiry Regarding PF and ESI Contributions
Dear Mr. Ashok Kumar Mishra,
I am a new member of CiteHR.com and am seeking information regarding PF and ESI. As per my understanding, 12% of the contribution (from employees) based on the basic salary is allocated to the PF, with the remaining 12% covered by the employer.
For instance, if the basic salary amounts to 25,000, the employer's contribution would be 3,000. However, there is a ceiling limit set at 6,500 or 780 only.
I would appreciate it if you could clarify this doubt for me. Additionally, I kindly request your contact details, including your email ID.
Regards,
K. Ravi Kumar
E-mail: kasinaravikumar@gmail.com
Ph: 09989111149
From India, Hyderabad
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Dear Mr. Ashok Kumar Mishra,
I am a new member of CiteHR.com and am seeking information regarding PF and ESI. As per my understanding, 12% of the contribution (from employees) based on the basic salary is allocated to the PF, with the remaining 12% covered by the employer.
For instance, if the basic salary amounts to 25,000, the employer's contribution would be 3,000. However, there is a ceiling limit set at 6,500 or 780 only.
I would appreciate it if you could clarify this doubt for me. Additionally, I kindly request your contact details, including your email ID.
Regards,
K. Ravi Kumar
E-mail: kasinaravikumar@gmail.com
Ph: 09989111149
From India, Hyderabad
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Dear Ravi,
If I am not wrong, you have calculated that in a wrong way. The PF will be deducted on the basic salary of the employee but not on the total salary. I suspect the percentages are as follows: the employee's contribution is 12% on his/her basic salary, and the employer's is either 13.01% or 13.91%.
If I am wrong, please correct me!
Regards,
Joshi
From India, Hyderabad
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If I am not wrong, you have calculated that in a wrong way. The PF will be deducted on the basic salary of the employee but not on the total salary. I suspect the percentages are as follows: the employee's contribution is 12% on his/her basic salary, and the employer's is either 13.01% or 13.91%.
If I am wrong, please correct me!
Regards,
Joshi
From India, Hyderabad
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Hi Joshi,
The PF employee contribution is 12%, and the employer contribution is 13.61% from basic. For ESI, the employee contribution is 1.75%, and the employer contribution is 4.75% from gross.
Thanks,
SaiUma
From India, Madras
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The PF employee contribution is 12%, and the employer contribution is 13.61% from basic. For ESI, the employee contribution is 1.75%, and the employer contribution is 4.75% from gross.
Thanks,
SaiUma
From India, Madras
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Dear Ravi,
If a person is drawing a salary of 25,000/- per month, only PF is paid from the basic, and ESI is paid from the gross. As you mentioned, there is a ceiling limit of 6500/-, but it depends on the employer's wish. If the employer is willing to pay above 10,000/-, they have to provide a letter to the PF department, and then they can pay PF for the employee.
Thanks,
Uma
From India, Madras
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If a person is drawing a salary of 25,000/- per month, only PF is paid from the basic, and ESI is paid from the gross. As you mentioned, there is a ceiling limit of 6500/-, but it depends on the employer's wish. If the employer is willing to pay above 10,000/-, they have to provide a letter to the PF department, and then they can pay PF for the employee.
Thanks,
Uma
From India, Madras
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Hi Ashok,
Thank you for the information. However, if a person decides to leave their job and does not plan to work in the coming years, they will still receive the amount after they attain 58 years of age.
From India, Mumbai
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Thank you for the information. However, if a person decides to leave their job and does not plan to work in the coming years, they will still receive the amount after they attain 58 years of age.
From India, Mumbai
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This is K. Ravi Kumar from Hyderabad. Please clarify my doubt regarding provident fund contribution. Below, I'm giving you some pay details of my colleague.
BASIC: 17,510.00
House Rent Allowance: 7,004.00 (40% of Basic)
Transport Allowance: 1,751.00 (10% of Basic)
Performance Incentive: 5,253.00 (30% of Basic)
------------------
GROSS SALARY: 31,518.00
P.F = 2,101.00
Professional tax = 200
TDS = 1,500
Now, clearly tell me the employee's contribution as well as the employer's contribution.
Regards,
K. Ravi Kumar
E-mail: kasinaravikumar@gmail.com
Ph: 09989111149
From India, Hyderabad
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BASIC: 17,510.00
House Rent Allowance: 7,004.00 (40% of Basic)
Transport Allowance: 1,751.00 (10% of Basic)
Performance Incentive: 5,253.00 (30% of Basic)
------------------
GROSS SALARY: 31,518.00
P.F = 2,101.00
Professional tax = 200
TDS = 1,500
Now, clearly tell me the employee's contribution as well as the employer's contribution.
Regards,
K. Ravi Kumar
E-mail: kasinaravikumar@gmail.com
Ph: 09989111149
From India, Hyderabad
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