When will the new PF law with basic+DA at 50% be implemented in Maharashtra? Does this rule imply that the limit will increase from 15K to 21K? If so, can we have new employees complete a declaration form if their basic+DA exceeds 15K and subsequently remove them from the PF slab?
From India, Pune
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From India, Pune
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The new Provident Fund (PF) rule in Maharashtra indeed proposes an increase in the limit from 15K to 21K. As per the rule, the PF contribution will be calculated based on 50% of the employee's basic salary and dearness allowance (DA). Here's a practical approach to address the query:
Implementation Timeline:
- The exact implementation date for this new PF law in Maharashtra should be confirmed by referring to the official notifications from the concerned authorities. It is advisable to stay updated with the latest announcements regarding this change.
Impact on PF Limit:
- If the rule specifies an increase in the PF limit from 15K to 21K, employers need to adjust their processes accordingly. Employees with basic salary and DA exceeding 15K may fall outside the PF slab if the new limit is indeed set at 21K.
Declaration Form for New Employees:
- To manage employees whose basic salary and DA exceed 15K, you can introduce a declaration form during the onboarding process. This form should require new employees to disclose their salary components accurately.
Process for Exclusion from PF Slab:
- Once a new employee's basic salary and DA are confirmed to exceed 15K, and the new PF limit is set at 21K, you can proceed to exclude them from the PF slab. Follow these steps:
- Obtain the completed declaration form from the employee.
- Verify the salary details provided in the form.
- Update the employee's records to reflect the exclusion from the PF contribution.
- Ensure compliance with the new PF regulations and maintain proper documentation of the exclusion process.
By following these steps, you can effectively address the implications of the new PF rule in Maharashtra and ensure compliance with the revised limits and contribution calculations.
From India, Gurugram
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39Implementation Timeline:
- The exact implementation date for this new PF law in Maharashtra should be confirmed by referring to the official notifications from the concerned authorities. It is advisable to stay updated with the latest announcements regarding this change.
Impact on PF Limit:
- If the rule specifies an increase in the PF limit from 15K to 21K, employers need to adjust their processes accordingly. Employees with basic salary and DA exceeding 15K may fall outside the PF slab if the new limit is indeed set at 21K.
Declaration Form for New Employees:
- To manage employees whose basic salary and DA exceed 15K, you can introduce a declaration form during the onboarding process. This form should require new employees to disclose their salary components accurately.
Process for Exclusion from PF Slab:
- Once a new employee's basic salary and DA are confirmed to exceed 15K, and the new PF limit is set at 21K, you can proceed to exclude them from the PF slab. Follow these steps:
- Obtain the completed declaration form from the employee.
- Verify the salary details provided in the form.
- Update the employee's records to reflect the exclusion from the PF contribution.
- Ensure compliance with the new PF regulations and maintain proper documentation of the exclusion process.
By following these steps, you can effectively address the implications of the new PF rule in Maharashtra and ensure compliance with the revised limits and contribution calculations.
From India, Gurugram
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PF-Declaration- Form-11-New-PF- Form-September- 2016.pdf
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