PF – Wage Ceiling Enhancement to Rs 15,000 Effective 01-Sep-2014
The Provident Fund (PF) department, in its circular dated 28-Aug-2014, has notified the wage ceiling enhancement to Rs 15,000 per month from Rs 6,500 per month, effective 01-Sep-2014. Please ensure that PF deduction and contribution are calculated as per the new wage ceiling of Rs 15,000 from Sep 2014 onwards.
In other words,
a. If the PF wage of an employee is more than Rs 15,000 per month:
The minimum mandatory PF contribution (and deduction) shall be Rs 1,800 per month (12% of Rs 15,000).
b. If the PF wage of an employee is less than Rs 15,000 per month:
The minimum mandatory PF contribution (and deduction) shall be 12% of the actual PF wage.
If any of your employees has been out of the PF net so far on account of their having been receiving PF wage of more than Rs 6,500 per month, such employees will now come within the ambit of PF if their PF wage is now is less than or equal to Rs 15,000 per month.
Please note that the new PF wage ceiling could impact the compensation cost incurred by your organization on account of the increase in employer PF contribution. The employees’ take home pay too could get impacted.
You can read about the basis of PF calculations here.
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What would be the basis of Pf calculation if the salary of an employee is basic 7000, Hra 2100 @30%, conveyance -800. Does the Pf act anywhere says that the Pf has to be deducted on the basis of minimum wages which is 8554 for Delhi.
In your example, the PF amount should be calculated after excluding HRA since HRA is explicitly excluded from the Act. In case the wage drops below the minimum wages, PF should be calculated on minimum wages. There is a PF department circular in this regard.
Wat ur mean wage (basic+DA) or Gross. Please explain.
I paid salary to employees rs.7000/-(basic)+HRA+Conv.+Other allowance. and In delhi i minimum wages is Rs.8650.00. So please tell me on which amt i calculate PF.
PF wage means gross (excluding HRA and other exempted heads) and not just Basic + DA. If the minimum wages amount is more than the PF gross paid, PF should be calculated on minimum wages and not the gross amount.
Thanks for the information. Will appreciate if you could share the PF circular regarding PF deduction on the entire salary for the employees getting minimum wage. Otherwise share the link for the same.Thanks in advance.
The circular number is Coord / 4 (6) 2003/ Clarification/ Volume II/ 7394 dated 23/05/2011. However, the PF department later kept this circular in abeyance on account of a High Court verdict. There is now a case pending in the Supreme Court on whether the PF department can insist that the minimum wages should not be split for the purpose of PF calculation.
We find many PF experts advising that minimum wages not be split for the purpose of PF calculation, to be on the safer side. I think the final word on this will be said when the Supreme Court gives its verdict on this.
Hi I have my basic salary of 9500 an earlier i use to deduct 1140 as a PF and all of the sudden I employer is deducting 1800 as a PF and apart from that employer has deducted some amount from my basic HRS & DA also. so I wanted to know whether they are doing it in the right way or not. & thank for the nice platform for discussion. hope I’ll get the better response.
Thanks & Regards
Vishwas
Your employee could be (correctly) calculating PF as 12% of your gross pay (excluding HRA). Your gross pay (excluding HRA) should be Rs 15,000 per month and hence 12% of it works out to Rs 1,800.
Is it right to calculate pf on gross excluding HRA, if basic is below 15000. Can pf be calculated on conveyance and medical allowance also.
It is correct.
Hi I have my basic salary of 10000 an earlier i use to deduct 1200 as a PF and all of the sudden I employer is deducting 1800 as a PF and apart from that employer has deducted some amount from my basic HRS & DA also. so I wanted to know whether they are doing it in the right way or not. & thank for the nice platform for discussion. hope I’ll get the better response.
Thanks & Regards
Vipin
PF should be calculated on gross PAY after excluding components like HRA. However, if your gross exceeds Rs 15,000 per month, you can restrict PF to Rs 1800 (which is 12% of Rs 15,000). I presume your current monthly gross excluding HRA is Rs 15,000 (or more). Hence, your organization may be deducting (and contributing) Rs 1,800 as PF.
Hello
Can I have this clause of restriction to 1800 in EPF site or anywhere
The law states that contribution of PF up to a monthly salary of Rs 15,000 is mandatory. However, contributions beyond salary of Rs 15,000 can be made though not mandatory. Hence, employers and employees can choose to restrict PF contribution to Rs 1,800 (12% of Rs 15,000) even if the salary is more than Rs 15,000.
Sir,
Is employees contribution also restricted to Rs.1800/-??
Suppose if the Employee Basic+DA is equal to Rs.40000/-
then how much PF should deduct from the employee.
Thanks in advance
1. The employee’s contribution can be restricted to Rs 1,800 if the employee so wishes.
2. If the PF wage is Rs 40,000, the PF deduction can be Rs 4,800 (12% of Rs 40,000) or Rs 1,800 (12% of Rs 15,000), if the employee wishes to restrict their PF contribution.
our concern are over basic ,Da,food allowance is more than 20000 as this situation employer contribute as same of employees contribution in 12% please give some suggestion…
I am unable to understand your question. Can you please rephrase it?
Dear Sir,
If My Basic is 15000 but i want to deduct PF on only Minimum Wages, can i Do this?
If an employee’s PF salary is equal to or more than Rs 15,000, you cannot deduct PF on any wage less than Rs 15,000.
Hi my basic salary is 15000 they deduct 1800 for PF.is company providing any contribution in PF
Yes, your company will be making the employer contribution. What is deducted from your salary is the employee contribution.
is the salary includes Basic+DA or Basic +DA+Special Allowance for PF calulation
Special Allowance and other allowances should be included for the purpose of PF calculation.
Dear Gautham,
My Salary Split up is Basic+HRA+Personal Pay+Conveyance Allowance!
Can you please tell me whether the PF is calculated on BAsic+Personal PAy+ Conveyance or Just Basic??????
PF should be calculated on Basic+Personal Pay+Conveyance and not just on Basic.
Sir, any notification is there for PF should be calculated on Basic+Personal Pay+Conveyance ? and In case the wage drops below the minimum wages, PF should be calculated on minimum wages ?
Sir, any notification is there for PF should be calculated on Basic+Personal Pay+Conveyance ?
Ans: https://www.hinote.in/calculate-pf-on-gross-pay-and-not-basic-head-of-pay-part-i
In case the wage drops below the minimum wages, PF should be calculated on minimum wages ?
Ans: There was a circular from the PF department that PF should be calculated at least on minimum wages. However, the circular is not currently in effect on account of a court case regarding splitting of wages for the purpose of PF calculation.
my salary is 12000 . so please tell me basic salary and hra how i calculated /
The breakup of salary across different heads of pay shall be as per your organization’s policy. In most organizations, Basic is kept at 40% to 60% of the total salary.
if my basic salary is 15000/- how much pf should be deducted
If your Basic salary is Rs 15,000 per month, the PF deduction shall be at least Rs 1,800 per month. It can be more than Rs 1,800 if the employee and the employer so wish.
Hi, my salary is 16000.00 pm. i joined company after 1 sep. 2014. my company told me that you are not eligible for EPF because your salary is more than 15000.00. please suggest me is it right or wrong.
It is wrong.
Hi,
My yearly CTC was 2.4. And as per the new PF norms how much would I get as take home? Both employee (Rs.1800) and employer (Rs.1800) contributions were being deducted from my salary. Is it true that the new PF rule contained that both the employee and employer should be deducted from our salary? Kindly clarify.
Regards,
If your CTC is Rs 2.4 lakh and the total PF salary is Rs 2.4 lakh (Rs 20,000 per month), the PF deduction shall be at least Rs 1,800 per month. It can be more than Rs 1,800 if the employee and the employer so wish.
Employer contribution to PF is not a deduction from the employees’ salary. The employer contribution is a head of pay in addition to heads such Basic and HRA.
My salary is 15000rs take home…but I am not eligible for any pf…why??
If your organization is registered with the PF department and if you have not opted out of PF, you are absolutely eligible for PF.
SIR,
MY PREVIOUS EMPLOYMENT MY SALARY WAS 1ST 10000/- THAN MY PF WAS DEDUCTED 1200 AFTER THAT SALARY INCREASED TO 16000 ALSO PF WAS DEDUCTED FROM SALARY AFTER THAT I CHANGED MY JOB SALARY STARTING RS.15200/- AND THEY NOT DEDUCTED MY PF I TOLD THEM TO DEDUCT MY PF THEY TOLD THAT IT IS NOT COMPULSORY FOR US TO DEDUCT PF WHOSE SALARY ABOVE 15000/-
This is wrong. Your new employer should deduct PF from your salary and you should transfer your PF balance from your previous employer to your new employer.
Sir
i am working in registerd company and my salary is 17000.my company not giving me epf.when i told them for pf.they said it is not liable for more then 15000.is this right.what i do for getting pf.please help me
No, it is not correct. If your PF salary is above Rs 15,000 you can be exempt from PF only under certain circumstances.
Can you please let me what are those circumstances in which you will be exempted from PF deduction. Is it so mandatory to deduct PF if the PF wages exceeds 15k limit
An employee cannot be exempted from PF just because his PF wage exceeds Rs 15,000. Once an employee is into PF in an organization, he cannot be left out of PF until the end of his employment with the organization.
my salary is 19000 p.m. included all please calculate pf
Without the break-up, it will not be possible to arrive at PF.
Hi,
My gross is 1.9 lacs per month. Basic Salary is around 35k p.m. But my company wants to deduct only 1800 pm towards pf and they are also doing matching contribution. Is this legal? Is it not mandatory to deduct 12% of the basic salary?
Please advise. Thank you.
As per the law governing PF, it is mandatory to deduct PF to the extent 12% of the salary as long as the salary is less than or equal to Rs 15,000 per month. Once the salary goes above Rs 15,000, you have the option of contributing PF to the extent of 12% of the actual salary received or restricting PF to 12% of Rs 15,000.
Hence, what your organization is doing is in line with the law.
Dear Sir,
Please clarify the following-
1. if at the joining someone’s basic+DA is more than 15000/-, whether he will covered under PF in case if –
1. he was not the member of PF.
2. he was member of PF.
2. Whether he can become the member of PF by paying only his share of Rs. 1800/- when no employer share is paid.
3. if someones Salary crosses the limit of PF due to increment, whether employer and employee share will be continued as usual or employer can stop his share.
Regards
Dheeraj Bhai
Hi,
When we say PF wage , I hope we are talking about Basic+DA. But in some private companies they are not giving DA. So shall we calculate it on the basis of Basic Salary only or considering the lumpsum amount being paid? e.g, if an employee is having basic as 8,000 and total as 20,000, which will we consider and why?
Regards,
Nisha
PF wage refers to gross (after excluding heads of pay such as HRA) and not just Basic head of pay. Please take a look at our blog post in this regard.
http://www.hinote.in/calculate-pf-on-gross-pay-and-not-basic-head-of-pay-part-i
my doubt is whether the salary limit shall be restricted to Rs 15000 pm if exceeds so for 12% epf contribution .Whether the employer is liable to contribute over and above the 15000 limit
The employer can choose to restrict PF wage to Rs 15,000 if the organization so wishes. This even if the wage paid to employee goes above Rs 15,000 per month.
my ctc salary is 19000 . so i am eligible for pf or not.
You are eligible for PF.
Hi my basic is 20k, what should my contribution in maximum? Is it 1800/- or 2400/-
The minimum is Rs 1,800. You can choose to contribute more if you wish.
I need clarification Basic salary and Da for the year 2015-16-is how much for Tamilnadu
Are you referring to minimum wages?
My Basic Salary is 9000/- P.M.
please tell me the EPF amount to contribute and what is the Minimum basic salary to EPF Contribution.
The minimum PF salary shall be Rs 15,000 or the actual salary paid, whichever is lesser. Please note that PF should not be calculated on any amount less than the minimum wages as specified by government authorities.
i get 13000/- P.M as Salary in a private company. now company wanted to start E PF benefits for employees on Minimum Basic Salary for E PF. what should be minimum Basic Salary.
The minimum PF salary shall be Rs 15,000 or the actual salary paid, whichever is lesser. Please note that PF should not be calculated on any amount less than the minimum wages as specified by government authorities.
My salary is Rs. 40,000/- pf deducted Rs. 4,800/- is it correct. Please advice which is correct.
You employer seems to be deducting PF at 12% of the salary. This is a correct practice.
My salary… Basic + DA plus HRA is 12000. How much would be my PF?
Should it be 1800 or !2% of 12000?
Also is it compulsory to deduct my contribution?
1. The PF deduction should be (Basic + DA) x 12%.
2. Yes, PF deduction is compulsory if your organization is enrolled with the PF department.
Hi
Do we need to include HRA, Conveyance for PF deduction apart form Basic and DA???
I went through an article published on 2011… please refer the link and advise..
http://archive.indianexpress.com/news/include-hra-conveyance-to-fix-pf-hc/819315/
Thanks
Praveen
Among the heads of pay you have referred to, please exclude HRA alone for the purpose of PF calculation. Please take a look at our earlier blog post in this regard.
http://www.hinote.in/calculate-pf-on-gross-pay-and-not-basic-head-of-pay-part-i
Hi. Have seen all the conversations related to PF. From the conversation, I have understood the following:
1. PF is calculated on Basic salary and not any other component.
2. If Basic salary crosses 15000 p.m. the person is eligible for PF.
3. The mandatory PF deduction is 1800 per month, if the Basic salary is 15000, 25000 or 50000 per month. If the employer wishes to have a higher PF contribution, he can do so, but the employer can restrict PF contribution to 1800 per month for all as well, irrespective of the Basic salary amount.
Please confirm if my understanding is correct.
1. PF is calculated on Basic salary and not any other component.
Ans: This is incorrect. PF is to be calculated on gross and not Basic pay. Please take a look at our blog post on this.
https://www.hinote.in/calculate-pf-on-gross-pay-and-not-basic-head-of-pay-part-i
2. If Basic salary crosses 15000 p.m. the person is eligible for PF.
Ans: No, this is wrong. An employee is eligible for PF whether he receives a salary which is lesser than or greater than Rs 15,000 per month.
3. The mandatory PF deduction is 1800 per month, if the Basic salary is 15000, 25000 or 50000 per month. If the employer wishes to have a higher PF contribution, he can do so, but the employer can restrict PF contribution to 1800 per month for all as well, irrespective of the Basic salary amount.
Ans: The mandatory PF deduction is Rs 1,800 or 12% of salary, whichever is lesser. Beyond a salary of Rs 15,000, both employer and the employee can choose to restrict PF contribution.
My salary is Rs. 14,000/- pf deducted Rs. 1008 /- is it correct. Please advice which is correct
We can answer this question if we get to know the salary break-up.
My Gross Salary is Rs.21000/- which Includes Basic + D.A. Rs.12,194/- and Conveyance Allowance is Rs.1,626/-, H.R.A. is Rs. 4065/-. How much PF would be deducted and on which amount?.
The PF deduction shall be 12% of gross pay excluding HRA. However, if the PF amount goes above Rs 1,800, you can choose to restrict to Rs 1,800.
Gross salary 25050, My PF deduction is restricted to 1800…. I want to remove the Restriction of 1800.. I need to set my pf deduction 12% of my gross pay 25050 is 3006… How to change that, kindly help me
You can ask your employer to deduct a higher PF amount from your salary.
Sir,
I was working in three companies in different period where my PF was deducted. I did not withdraw the amount. After leaving the third company i worked in a company where PF is not applicable. Now since last three months I am working in a private limited company where pf rule is applicable and my pf deduction are made. Since my PF account was non- operative for more than 6 years .
My question is can I accumulate all my PF account to the new account. Kindly note that my PF deduction was made from the year 2000 to 2008.
Yes, you can. Please check with your previous employers for enabling transfer of PF amount to your current PF account.
Hello
I have two doubts please help me out
1. My company is having 30 employees and everyone have their basic salary 17,500 or more + Medical and Convince allounce they are not deducting PF and took a signatour on “PF deduction not required form” if that athical ?
2. They are not providing HRA as a break up in our salary slip is that athical ?
1. While employees who receive monthly PF salary of over Rs 15,000 can opt out of PF, there are conditions to comply with in order to opt out. If your organization complies with all the conditions, employees can opt out of PF.
2. Not sure why HRA is not being displayed on payslip. You can check with your HR department in this regard.
I am working in a pf paying company. Kindly inform me what are the allownances which are excluded from calculating PF?. Is HRA is arriving on Basic Salary or Gross salary?
With regards
Anil
Please take a look at our blog post in this regard – http://www.hinote.in/calculate-pf-on-gross-pay-and-not-basic-head-of-pay-part-i
We are unable to understand your second question.
Dear Sir now from my salary 2000+2000/- rupees deducted.
my basic salary is 20000/-
Can i deduct more towards EPF deposit every month for saving.
please replay me ASAP
mob-09438761987
An employee can contribute more than 12% of PF wages as his PF contribution, if he so wishes. The total employee contribution can go up to 100% of the PF wages. But please note that the employer is not obliged to match employee’s contribution beyond the mandatory contribution.
Above value is approx…..
CAN I DEDUCT 2500.00 + 2500.00 TOWARDS epf EVERY MONTH
BCZ I AM A CTC BASED employee
SO HERE TOTAL 24 % DEDUCT FROM MY ctc.
PLZ CLEAR MY DOUBT THAT CAN I DEDUCT MORE THAN 24 %
AFTER YOUR ANSWER I WILL DISCUSS WITH MY HR…
IF IT IS A LIGAL PROCEDURE…
What would be the basis of Pf calculation if the salary of an employee is basic 7000, Hra 2100 @30%, conveyance -800. Does the Pf act anywhere says that the Pf has to be deducted on the basis of minimum wages which is 8554 for Delhi
Yes, PF has to be deducted on minimum wages if the actual wage paid to an employee is less than the minimum wages. There is a PF department circular (dated 23-May-2011) to this effect.
Sir,
i joined new company .before we join we discuss about the salary which is decide that salary is 14000/m in hand and i signed the 1 year bond paper due to 14000/m in hand salary but after 1 week they said your pf will be deduct as 3600 of my current ctc means they will give me 10000/m some thing salary .i joined this company as a 11 month experienced not fresher they give me three choice one is if i dont want to cut pf then i change my designation second is resign other wise i cut the pf as they say .what should i do? please reply in my mail urgent.
If there is an agreement which clearly states that you will receive Rs 14,000 per month on hand (net pay), you could take it up with the company and ask why they are not honouring the agreement. If you do not receive a satisfactory answer, you have 2 options – either approach the relevant authorities with a complaint or leave the organization.
Sir,
My gross salary is 20,000 Pm. Which would be my P.F deduction 1800, 1560 or 1680 Is it Basic+DA+CA or Basic+DA.
If the salary structure contains Basic, DA and CA, the PF contribution shall be calculated as 12% of Basic+DA+CA. However, you can choose to restrict PF contribution to Rs 1,800 per month in case 12% of Basic+DA+CA is greater than Rs 1,800.
Sir, I hava a dout that at the time of joining my salary structure given by company basic plus da totaling to Rs 15,500 but due to absentisum my salary come in the hand at the end of month Rs 13200 only . is PF , ESIC, applicable to that emplee, or he come under exempted employee definition?
ESI – Given that the fixed salary is above Rs 15,000 per month, the employee shall fall in the exempted category.
PF – If the employee has opted out of PF, he shall not get into the PF net just because his salary falls below Rs 15,000 due to loss of pay.
Sir,
My Basic salary is less than Rs. 15K and my comapny deducting Rs. 1800 as PF.
I want to know that for employees having basic less than Rs. 15K, what should be the PF deduction. Is it 12% of 15000 or 12% of Actual basic salary????
PF should be calculated as 12% of gross pay (excluding certain heads). We cannot answer this question unless we get to know your gross pay (amount and break-up).
Sir,
My Salary is Rs. 17,000/- in hand. If I deduct 12 % of PF i.e,, (Rs. 2,040/-), will I get the money double or only Rs. 2,040/- will be my savings as PF.
When my salary was Rs. 12,000/- my PF was deduction 12 % i.e, (Rs.1,440/-); I got my PF double which was deducted from my salary. Instead of Rs. 1,440/- I received Rs. 2,880/-.
Kindly confirm, that same will be applied for Rs. 17,000/- or not.
Your employer should be depositing both employer and employee PF contributions to the PF department. Hence, if Rs 2,040 is the contribution by the employer and Rs 2,040 is the deduction, a total of Rs 4,080 shall be deposited with the PF department along with adminsitration charges etc.
Should i exempt to employees from PF whose gross salary 15000 and above? that means in salary breakup should i calculate the 15000 put as basic+da?
If the gross salary (Basic, DA and other components except HRA) is more than Rs 15,000 per month, the employee can be exempted subject to certain conditions. Please note that an employee who is currently under PF cannot get out of PF when the salary goes above Rs 15,000.
From all the post i m still unable to understand 2 ques.
1) If my salary(basic+DA) is less than 15,000 than PF will be compulsoryly deduct right?
2) If my salary (Basic+DA) is more than 15,000 than it is not mandatory to deduct at all.
Correct me if i m wrong. TIA
1) If my salary(basic+DA) is less than 15,000 than PF will be compulsoryly deduct right?
Ans: Yes, but salary is not just Basic+DA. It includes other heads of pay except heads such as HRA which are left out by law.
2) If my salary (Basic+DA) is more than 15,000 than it is not mandatory to deduct at all.
Ans: If you have been a PF contributor, the deduction cannot be stopped when your salary goes above Rs 15,000 per month. You still have to contribute a minimum PF calculated as 12% of Rs 15,000.
If we appoint the person on total salary more than 15000/- PM ( Up to Rs 100,000/- ) their is completion to deduct the PF @ 12% (on BASIC + DA )
If the PF salary is more than Rs 15,000 the PF should still be deducted (unless the employee can be exempted) at 12% of PF salary. However, you can restrict PF to Rs 1,800 (12% of Rs 15,000) per month if you wish.
Sir,
I am working in a pvt company in Varanasi since last 2 years.I’m getting 14000 pm,nothing else.If I want to quit the job what amount should I get ?
If you have only statutory deductions, your net pay shall be your gross pay minus ESI (if any) minus Professional Tax (if any).
my salary is 19000 basic, my job in pvt ltd company. so company is liable to deducted pf on my salary mandatory or not. explain me that pf deducted on 19000 basic salary for employer is mandatory.
It is mandatory. However, PF can be restricted to 12% of Rs 15,000 if you wish.
Dear
If any rule Monthly salary Is Rs 15000 take home salary
So there is no PF deduction Kindly confirm this
Thanks
BALAA
There is no such blanket rule.
if an employee drawing more than 15000/- salary per month
whether he should covered/enrolled under epf is it mandatory or optional
If your organization is covered under PF, you cannot be exempted from PF when your salary goes above Rs 15,000 per month.
Dear sir,
Sir i am getting salary Rs.40,000/- pm, i want know , how much should i deduct the PF on my salary.
I need your help.
We can answer this question only if we get to know the breakup of your gross pay.
employer share is also deducted from my salary after an increment and they are not showing it in salary sleep. so my salary sleep shows less total amount (i.e. equal to employer share) . previously it was not like that.
is it legal to do so?
Employer PF contribution is typically not displayed on the payslip.
bt as per appraisal letter my total salary is 21000, in salary slip total earnings shows are 19200.
Kindly check with your HR team on whether there are any pay components which are not displayed on payslip.
Sir, One of our Driver salary is Rs.16300.00PM, which includes all items..like Basic, DA, Service tax, etc., Please advise me, whether his PF & ESI contribution should be calculated for Rs.15,000.00 ONLY or Rs. 1630.00 ( i.e., above Rs.15,000.00) Or. Rs. 16,300.00. Also, tell me how much would be the PF & ESI deduction?
We need to check each head of pay with regard to its PF and ESI applicability in order to answer this question.
If the PF salary is RS 16,300, you can calculate PF as 12% of Rs 16,300 or 12% of Rs 15,000, if you so wish.
dear sir,
my qution is–saoce sir my 1 employee is salary 15500/month…but this is employee are not coming full month.the after deduction is month payment are not above of 15000/-.so plz ans me he is come of pf catagory or no.for exampl–the employee wages is 15500/month..but nov slary is 14500.so so he employee under of epf act or no..plz help me
If an employee is out of PF, there will be no PF deduction for him just because his salary went below Rs 15,000 in a month on account of loss of pay etc.
DEAR SIR,
NAMASKAR,
MY QUESTION IS, IF EMPLOYER PAY TO TRAINEE STAFF RS.10000/- AS A PAYMENT. IN RS.10000/- ( RS.3000 AS BASIC, RS.3000/- AS TRAVELING ALLOWANCE, RS.4000/- AS PERFORMANCE ALLOWANCE AND RS.2000/- AS COMPUTER ALLOWANCE )
SO PLEASE GUIDE US ON WHICH AMOUNT EMPLOYER DEDUCT PF AND WHAT IS THE %
PLEASE REPLY SIR
YRS
SHYAM
8275925336
PF should be calculated on the total of all heads of pay at 12%.
can PF be deducted less than the MW
The PF department, a few years ago, issued a circular that wage for the purpose of PF calculation cannot be less than the minimum wage. However, this was stayed by a High Court and the matter is now pending in the Supreme Court. Hence, until the Supreme Court decides on this matter, one can assume that PF wage can be less than the minimum wage.
Please highlight on the status of the circular from PF department , about “wage for the purpose of PF calculation cannot be less than the minimum wage “.
Whats the minimum wage for the PF eligibility , and the minimum PF contribution (employee + employer ) that is needed to keep the PF account active to continue earning the interest .
The department has withdrawn the circular on calculating PF on minimum wages since the matter is pending in a court of law. There is no minimum PF eligibility per se.
if a person is working for more for 28 days in a month, then PF contribution by the employer will be calculated on total earning of 28 days on or MW for 26 days. Please explain
It should be 12% of total PF wage.
Hallo sir,
My current salary is 15000/- and now its time for a hike. My company organization is saying PF will be deducted for employees under salary 20000/-.
Is that right?
Is it necessary to deduct PF from the salary for more than 15000/-??
Can we have the rights/privilege to remove PF for more than 15000???
Please sir.
Regards
Not sure on what basis your company is saying that PF will be deducted only for employees with salary under Rs 20,000.
If you are already under PF, you cannot get out of PF just when your salary increases above Rs 15,000.
Hi,
Does this mandatory that every company should be registered with PF department?
For a typical company, PF registration is mandatory if the employee strength is 20 or more. Please see the PF coverage rules for more information.
can we take 40% as a basic + da for pf deduction?
Does it matter in legal policy in pf
PF should be calculated on gross pay excluding exempted heads such as HRA. If 40% of Basic + DA is greater than 12% of PF gross, you can calculate PF deduction as 40% of Basic + DA.
If basic of Employee is Rs.23000 but due to loss of pay his payable days is 8 only and earned basic of 8 days is 6000. then on what amount pf will be calculated.
1. 15000*12%= 1800*8/30= 480
or
2. 6000*12%= 720.
Kindly suggest the pf amount payable.
PF is calculated on earned gross (not just Basic) after excluding exempted heads such as HRA. Please calculate the earned gross after applying loss of pay and calculate PF as 12% of the earned gross. If the earned gross (after loss of pay) is greater than Rs 15,000, you can choose to restrict PF contribution to 12% of Rs 15,000.
hi sir
if my salary is 4400 what will be the contribution of my and my employer toward PF .is ther any scheme of pension. plz tell me the calculation step by step
The employee and employer contribution shall be 12% (each) of your salary.
Could u pl advise as per the below salary breakup
COMPONENTS : CTC EARNINGS DEDUCTIONS AMOUNT
BASIC : 23800 23800 PROVIDENT FUND : 1,800.00
HRA : 9240 9240 ESIC : –
CONVEYANCE : 1600 1600 HEALTH INSURANCE : –
OTHER ALLOWENCE : 12106 12106 ADVANCE : –
MEDICAL ALLOWENCE : 1250 1250 LOAN : –
EMPLOYER PF : 2004 PROFESSIONAL TAX : 2 00.00
EMPLOYER ESI : — INCOME TAX : –
MOBILE ALLOWENCE : – ADVANCE EXPENSES : –
EXCESS TELEPHONE : –
OTHER DEDUCTIONS
Please how much amount PF amount i will get.
We are unable to understand your question. Can you please rephrase it?
Dear Sir,
I joined a company at a take-home salary of 15000 (minus P.Tax) in September 2007.
When the amendment came in 2014, I was earning around 26750 (minus P.Tax).
My company is listed with PF.
1. Are they right to tell me that you do not fall under the PF limits?
2. Opting out is a verbal communiction or written?
Once you become a PF member, you cannot opt out just because your PF salary goes above Rs 15,000. You have to continue to be a PF member until the end of your stint with the company.
Thank you for your reply. But I dont think I made myself clear, there.
I was not under PF. Inspite of my company being listed under PF . Therein lies my question. Did they do the right thing with me? Did they have the right to not get my PF rolling? Wouldnt this have required my consent?
When a person joins an organization which is under PF, he can opt out of PF if:
a. He is not currently a member of PF (in other words, he was not a PF member in his earlier organization or he has withdrawn his PF account prior to joining the new organization).
and
b. His PF salary per month is more than Rs 15,000.
Please note that both the above conditions should be satisfied if the new joinee wishes to opt out of PF.
Whenever a person joins an organization (which is under PF) he should submit what is called Form 11 to the organization. This is the form in which he specifies his current PF status and communicates whether he wants to opt out of PF. In other words, your consent to joining or not joining PF cannot be verbal and has to be through Form 11.
If an employee gets lesser then 15k (Basic+DA), then what should PF contribution amount? If the contribution is 1800, does it mean that irrespective of the salary the contribution cannot be lesser than 1800 per month?
Please advise, thanks.
If the PF salary is lesser than Rs 15,000, the mandatory PF shall be 12% of the actual salary and not Rs 1,800. For example, if the salary is Rs 10,000, the PF contribution shall be Rs 1,200 (12% of Rs 10,000) and not Rs 1,800.
Hi,
As per revised wage act, minimum wages for skilled labour is Rs,8754/-( basic +DA) and HRA 5% of Basic salary = Rs.9191/-.
Please let me know if employee is getting Rs.7000/- per month, do we have to revised his salary to Rs.9191/- as per new wages act.
What about PF— contribution would be 12% on Rs.8754/- or on Rs.7000/-.
Kindly confirm..
If you revise the wage to comply with the minimum wage requirement, PF shall be 12% of the revised wage.
Hi,
Please let me know is it mandatory to revise the minimum wages ? or should I calculate 12%on basic wages ie on Rs.7000/-.
Regards
usha
Not sure what your question is. Are you asking if PF should be calculated on minimum wages?
Hi,
If I do not revise the wages and person salary is Rs.7000/- p, then do I have to deduct 12% of Rs.7000/- as PF.
OR I have to deduct 12% on minimum wages as per act.
Regards
usha
12% of Rs 7,000 and not not the minimum wages.
A company having 4 employees on its pay roll and taking service of security gaurds and others from other company – whether PF coverage is mandatory- considering all persons becomes more than 20
Please check if the manpower employed from other companies are covered under PF in the respective companies. If not, you may be liable to pay PF for them as the principal employer.
HI Can anyone Knew about preset percentage of pf all companies are started different deduction in salaries all are saying as per new rule 2016 pf deductions are increased now am totally confused please help me below I mentioned my colleague salary numbers for reference gross is 21000 and basic20%hra20%canveyance10%lta10%medical10%others10%Fbp20%.deduction part is pf and gratuity and meal coupons(but he is not registered in meal coupons pf percentage 12% but I thought changed or not I don’t no exact details now he is getting 17789 3000 was deducted in gross is this right please help me
thanks
venkateshhrm@yahoo.in
7207442648
We are unable to understand your question. PF should be calculated as 12% of (gross minus HRA) with an option to restrict PF to Rs 1,800 per month. There is no new rule related to PF calculation in 2016.
If an employee is having salary more than 15,000 then is EPF mandatory for employer?
If the salary is more than Rs 15,000 then an employee can be excluded from PF, subject to conditions.
What are the conditions under which company can exclude from PF ??
For an employee to be excluded from PF:
a. He should be drawing a salary of more than Rs 15,000 per month.
b. The employee shouldn’t have been a PF member earlier while in your organization. For example, an employee who is a PF member receives a salary hike which takes his salary to above Rs 15,000 per month. Just because his salary has gone above Rs 15,000, he cannot drop out of PF. Once a PF member, always a PF member until the end of his stint with your organization.
A new joinee can be excluded from PF only is his salary in your organization is more than Rs 15,000 and he was not a PF member in your earlier organization and or have withdrawn his PF from his earlier employer. If he was a PF member in his earlier organization and his PF balance has not been withdrawn (even if his salary is more than Rs 15,000), he should be enrolled for PF in your organization and his earlier PF balance will have to be transferred to his current PF account.
Hi sir,
my salary 17500 (gross)
basic 7000
Hra 4000
medical allo 1250
special all 3250
conveyance 2000
they deducting Rs.1620 for pf and pt Rs.200
how they calculating pf and this correct ??!!!!
PF = 12% of (gross – HRA) = 12% of Rs 13,500 = Rs 1,620. Their calculation is correct.
my salary is 18000 Rs. whether pf contribution is optional to pay or compulsory to pay the contribution.
is there any option that the employer is restricted that we dint want to pay the contribution. what is the correct rule.
If you are already under PF, you cannot get out of PF just because your salary increases above RS 15,000 per month. If you have not been under PF so far and your PF salary is Rs 18,000, you can choose to opt of PF subject to conditions.
sir.I want to ask shall special allowance be included in the wage for pf calculations or not? if yes ,tell me the related circular.also
ALSO TELL ME WHETHER THERE IS ANY PROVISION IN EPF ACT,THAT ALLOWS US TO DEDUCT PF ON 15000/- IF THE TOTAL SALARY EXCEEDS 15000/-
Yes, you can restrict the PF wage to Rs 15,000 and deduct PF on Rs 15,000 if the salary exceeds Rs 15,000.
Special Allowance should be included.
PF Contribution is payable on all emoluments payable in cash to an employee during the month excluding the following:- (i) House Rent Allowance (ii) Over Time Allowance (iii) Bonus (iv) Commission or any other similar allowance; and (v) Any presents made by the employer
As you can see from the above, PF should be calculated on all emoluments (including Special Allowance) except HRA and other heads which are explicitly excluded by the Act.
http://esewa.epfoservices.in/faq.php – Please see question no. 43.
i want to know,if pf once applied always applies and please give me a calculated solution on these salaries.In 2012 to 2015-6000/_ per month In 2016-17500/- per month.Does pf applies for 2016? If applies on which 12% rate should be applied whether on 17500/- or 15000/-.
PF, once started, should be continued with until the end of an employee’s stint with an organization.
The 12% rate can be applied on either Rs 17,500 or Rs 15,000, as per the wish of the employee and the organization.
whether employer can contribute more than RS.1800?
Yes, the employer can contribute more than Rs 1800.
1800rs deduct from my salary for PF. But in my UAN account only 1680rs added per month. Where is the remaining 120rs? Is there any hidden deduction?
There should be no hidden deductions. Please check with your employer in this regard.
Is it wrong if we calculate pf on basic + da or is it mandate to calculate on basic + da+ con+med+spcl allowance plz let me know asap bcoz if it is so need to make changes or can we continue with the same ie pf calculated on basic +da
PF should be calculated on “basic + da+ con+med+spcl allowance” and not on Basic + DA.
Hi
what should be the minimum basic+ DA for IT company to contibute PF, am confused, some say it should be above 6500, so that PF contibution can be done accordingly. all employees are voluntarily opted for PF, we need to deduct EE and ER, what should be the minimum Basic+ DA please advice
Regards
Ganesh
Rs 6,500 is no longer valid. The PF salary limit is now Rs 15,000.
PF is mandatory for a salary of up to Rs 15,000 per month unless an employee is excluded from PF (as per PF rules). Salary here refers to Gross salary minus HRA and other excluded heads of pay. Salary does not mean just Basic and DA.
Dear Sir,
My Basic is 17100, now from this month my company started PF facility for all employee except me because HR told me your Basic is more than 15000 so compmay is not bound to give PF contribution.
Is this correct please suggest me
If you were not a PF member in your earlier organization and or have withdrawn your PF from your earlier employer, you can be left out of PF. If you were a PF member in your earlier organization and your PF balance has not been withdrawn, you need to be enrolled for PF in the current organization and your earlier PF balance will have to be transferred to your current PF account.
can an employee has the option of not to contribute fund towards pension i.e. FPF, if his basic salary is above Rs.15000/-? please reply
Are you referring to EPS?
Dear Sir,
my gross salary is 17600 (4400 basic+HRA2500+9972 )Others and deductions are PF 528+Professiona tax 200) and my take home salary is 16872.00.
my question is what is minimum PF has to be deduct from employee (me).
please advise, so that i will approach my employer.
Your PF should be 12% of (Gross Pay minus HRA).
My salry is 18000.i am member of EPF since 3 year.and this is my 1st organisation but my employer not giving employer contributions in Epf because my salry is above 15000.is it correct ?
If you are already a member of PF, the PF contribution cannot be stopped just because your salary has gone above Rs 15,000. Even if your salary goes above Rs 15,000, you should continue to remain a PF member until you leave the organization.
sir we are employer(contractor) now the basic salary of our certain employee is more than 15000. and we neither deducted nor deposited pf but our principal employer said us that you have to deposit 1800 for each employee.so is it right? because we have not deducted pf so why we have to deposit
If your organization is under the PF net, you should be deducting and remitting PF. Not deducting PF when you are supposed to, is incorrect.
If the salary is 25000. What is the maximum contribution that can be deposited in EPF by employee. Is it mandatory the employer need to contribute same amount? Then what will be the employers contributions to EPF & EPS Accounts. Can the employer limit the contribution to 1800/-
The employee contribution can go up to 100% of the wages. The employer can limit the contribution to Rs 1,800 per month.
hi, is it possible that on employee’s request pf is deducted more to contribute more to pf account for saving purpose and employer can pay only 1800 /- minimum amount required.
Yes, absolutely. Employee can contribute a higher amount (than employer) by way of voluntary contribution. The employer can restrict contribution to Rs 1,800 per month.
again i want to know that how 18000/- gross salary can be divided into basic, da and hra so that esi and pf expenses can be reduced to minimum at employer’s end
Yes, the gross salary can be structured as per your organization’s policy.
The gross salary pm. is Rs.10260. (Basic : 6669, HRA : 1539, CLA : 1026, TA :1026).
Pl confirm the PF will be deducted on 6669*12% =800 or
or 10260*12 = 1231
PF = (Basic + CLA +TA) X 12% = Rs 1047
Sir
My gross salary is 4450 very less. Basic +DAaround 2700 is there any minimum gross or minimum pf wages like that if there means Pls info.
How much minimum gross salary can be considered
There is no minimum gross for the purpose of PF.
Hello,
My gross salary is 20000 but the basic is less than 15000 then can I get exemption from PF? Can I refuse for PF contribution? Kindly revert.
If your PF gross (Gross minus HRA) is greater than Rs 15,000, you can be opt out of PF subject to conditions.
Thanks for your revert.
Respected sir,
Now this time my salary is
Basic=12840 +Grade Pay= 2800 + D.A =20645 Total Rs. 36285/-. Hum abhi tak
iska 12% Rs.4354 + employers share Rs.4354 = 8708/- bhejte rahe hein. Epf ded.
01.09.2014 ke anusar 15000/- ka 12% bhejna tha. Lekin hume maalum nahi hone ke karan aisa hota raha. Pl.tell me that jo bhi employer’s share extra deduct hua hei
kya employer humse vaapus lene ka huqdaar hei.
No, you cannot take back any contribution made so far. You will receive the PF balance in your account as and when you withdraw the same.
is there pf deduction from employee share (12%) possible, if any member having pf membership from 01.09.2014 and salary is more than 15000rs from the firtst doj..plz reply
Yes, employee can contribute more than 12%.
Hi,
We have been deducting and contributing PF on the total wages of the employees. Now, we are planning to restructure the salaries into Basic, DA, HRA, etc. As such, the PF contribution will go down. Can we go ahead with this after informing all employees of the effect or is it that we cannot reduce PF contribution once it is made for existing employees? Please advise.
As long as the minimum mandatory PF contribution is made, the department will have no issue with the move to restructure the salary.
Hello Sir,
I am enrolled in PF. Due to some internal issues I don’t want to contribute in PF, it is totally loss for me and also I have crossed the limit of PF but one of our PF consultant said that once you have enrolled you will have to contribute always no matter that you are in PF limit or not. Kindly suggest the best way.
Once you have enrolled under PF, you cannot leave PF until the end of your tenure with the current employer. The advice provided by your PF consultant in this regard is correct.
Thanks for your prompt reply. Kindly suggest in case if I switch to another job then can I do the same?
If you switch jobs and your new company is under PF, you can only transfer PF to the new PF account. In case you withdraw your PF and then join a company, you can choose not to be under PF in the company in case your salary is more than Rs 15,000 per month.
Thanks a lot.
If all employees drawing basic higher than 15000 opt out of PF scheme, then ‘Statutory’ carries no meaning. As per Security Act. Sec 17 1. a/b, it clearly says that “Any establishment or employees contributing to an alternate PF retirement scheme instrument elsewhere can seek exemption from PF contribution’. By any case, the employer & employee are bound to contribute on restricted wages of max 15000. It stresses that it is the duty of the employer to enrol the employee in EPF. I request the learned members to correct me if wrong.
Note sure if I have understood you correctly. Your point regarding alternative PF scheme does not seem to be relevant here.
An organization can have a situation where all the employees are excluded employees from the point of view of Provident Fund. In such a case, the organization should continue paying administration charges alone to the PF department each month.
My salary is 25000 p.m but our society telling no need to pay pf is it right r wrong plz reply early.
It depends on a variety of factors. You need not pay PF if your salary is Rs 25,000 only if you fall under the definition of excluded employee.
If you are already under PF, you cannot opt out of PF just because your salary increases beyond Rs 15,000.
I have registered all my employees under EPF and out of them 3 employees basic salary is above 15000. Since I have registered them under epf and taken their uan no will it be compulsory to pay their pf or that can be excluded with the concent of employee
You can exclude them subject to conditions. If the employees were under PF with their earlier employer and did not withdraw their PF prior to joining your company, you cannot exclude them from PF.
they are fresh employee and never worked earlier, so can i exclude them from epf even uan number is generated with their consent
If they are getting employed for the first time and their PF salary is more than Rs 15,000 per month, they can be left out of PF. I do not understand the part about UAN in your question.
sir my doubt is if i am getting Rs.43000/- , than what should be the Basic salary.
Kindly check with your employer regarding the salary break-up.
somebody told me to Rs.15000/- is basic salary. is it right ? and somebody told me Rs.9000/- is basic salary of Gross amount Rs.43000/-.
I am unable to understand your question. Please rephrase it.
Sir,
i am doing a part time job in company as an accountant , now they are given some EPF related jobs to me. my question is When a employee registered with EPF that time employee’s salary was Rs.20000/- , and that time Basic pay was Rs.7000/- . and now his salary increase Rs.43000/-. then what should be the basic amount for Rs.43000/-
There is no legal requirement related to the relationship between Basic and gross pay. Organizations typically keep Basic at 40% to 50% of the gross pay.
Sir
I have one more question if any employee already registered with EPF and he left the job. After that he claimed his EPF amount fully. and after few months he want to join with same co. that time his salary package is above Rs.20000/- pm. shell we avoid the employee with EPF registration.
It depends. If the employee did not withdraw his PF after leaving your company, his PF should be continued with when he rejoins the company.
IF A PRIVATE EMPLOYER (DELHI) CONTRIBUTE TOWARDS EPF AND ESI SO THAT MEANS THAT EMPLOYER HAS TO FOLLOW THE MINIMUM WAGE RATE ACT AS PER DELHI GOVERNMENT.
PLEASE REPLY URGENT.
The minimum wage has nothing to do with PF and ESI. Not sure what your question is.
Hi,
I am an international worker and I have the following questions:-
– What is the maximum PF Deduction amount for the entire year? Is there any ceiling limit?
– If I want to opt out of EPF, can i do that?
– Do I need to pay Employee and Employers contribution as an international worker?
Please advise.
1. What is the maximum PF Deduction amount for the entire year? Is there any ceiling limit?
Ans: There is no ceiling on the salary on which the contribution has to be made by both the
employer and an employee.
2. If I want to opt out of EPF, can i do that?
Ans: No, you cannot opt out.
3. Do I need to pay Employee and Employers contribution as an international worker?
Ans: Yes, both employer and employee contributions need to be paid.
Hi,
i have one question if salary amount is 30k and employee pf amount is 1800, how can i calculate basic and hr if company did not give any other allowances. means i salary component is only basic and hra.
please reply
We cannot calculated Basic from the information you have provided.
Then what else you require for calculation of basic?
I said we cannot calculate Basic because there is no standard formula for Basic calculation. Organizations typically keep Basic at 40% to 50% of gross. Also, we do not know if the PF amount you have specified is on the restricted Basic.
In your example, both the following are possible.
1. Basic = 20,000 and HRA = 10,000 and PF 12% of restricted Basic = Rs 1,800
2. Basic = 15,000 and HRA = 15,000 and PF 12% on full Basic = Rs 1,800
Hi,
When i joined the organisation, my Basic was less than 15000, accordingly i have to allow my employer to deduct the PF.
However, as recently my salary has been revised, so can i stop my PF as my revised basic is more than 15000. if my employer deny to follow this how i can proceed ahead.
Regards
Nishit
Once PF starts, it cannot be stopped until you leave the organization.
Mu Basic salary is Rs 120,000 pm. Employee pay rs 1800 towards PF contribution.
Can I pay 12% of my basic salary as my contribution.
Whether it will be Tax exempt and under which clause. I have a separate PPF account and have LIC also.
If interest earned also will be tax free.
1. Can I pay 12% of my basic salary as my contribution.
Ans: Yes, you can.
2. Whether it will be Tax exempt and under which clause. I have a separate PPF account and have LIC also.
Ans: Deduction is available under Section 80C of the Income Tax Act (which includes PPF and LIC premium).
Hi,
For basic pay of 20,000, employee pf contribution @12% is being deducted at 2400. In this case, what should be the employer contribution whether 1800 or 2400?
If minimum contribution from employer is 1800 in above case, what is wrong if employer is also contributing 2400 to match to employee contribution?
Thanks,
In the case you have cited, the employer can contribute more than Rs 1,800 in order to match the employee contribution. There is nothing wrong in it.
hi, in my case, my gross salary is 18000(basic+da=11700,hra=4600,other allowance 1700). and I would like to know which amount is calculating as PF Amount .whether i am applicable for PF contribution?
PF = (Gross – HRA) X 12% in your case. Yes, you are to come under PF unless your organization is not registered with PF.
hlww dear sir ,Sir here my question is pf amount only deduct basic+da then how is it possible here you included conveyance.
i mean other allowance 1700
PF should be calculated on gross (not on just Basic and DA) after leaving out heads which are to be excluded as per the PF Act.
Hi Gautham,
I am working in Company A. Company A Sell our Department to Company B. Company A PF is Transfer the details to Company B. Now i have 2 PF numbers under one UAN number.
1. Is it Possible to withdraw my Company A PF amount ? If Yes How ?
2. My Gratuity maturity would been Affected ?
3. Without my knowledge is it possible to transfer my Previous PF account to New PF Account ?
4. Company A – Service is 8.5 Years. As per gratuity act 4.7+ Years i working in the same organization, i eligible to Gratuity. Now my Gratuity is been Continuing this Company ?
Regards,
Suresh M.
Kindly check with your company in this regard since I am not sure about the terms of the takeover. However, let me attempt to answer your questions.
1. Is it Possible to withdraw my Company A PF amount ? If Yes How ?
Ans: If you are moving to another company on account of the sales of business, you can transfer your PF to the new company by making a transfer request online.
2. My Gratuity maturity would been Affected ?
Ans: Your new company will, most likely, recognize your service in in company A and calculate gratuity accordingly.
3. Without my knowledge is it possible to transfer my Previous PF account to New PF Account ?
Ans: No, PF cannot transferred without your knowledge.
4. Company A – Service is 8.5 Years. As per gratuity act 4.7+ Years i working in the same organization, i eligible to Gratuity. Now my Gratuity is been Continuing this Company ?
Ans: In all likelihood, the answer is yes. But please check with the HR/compliance team in your company for a clear answer.
hii sir,
my gross salary 20000 now,11000basic+(da,hra ND other allowence)…i joined 16000 basic7000+2000da…can i eligible for pf scheme.
when i joined company my salary is 16000 and after the training period of 6 month..hr says your not eligible for pf scheme because your joining salary is above 15000…7500 bacic+2000 da+other allowance…its right?…who r eligible for pf scheme..
Did you work elsewhere prior to this employer and were you covered under PF in your previous employment?
Yes, you are eligible to come under PF.
Hi,
My employer follows PF ceiling limits but i want to increase employee contribution
in PF to 12% of basic.
My employer is denying to increase my contribution. Is this denial legal?
You can contribute a higher PF amount as voluntary contribution.
A registered PF member company employs a new employee on contractual basis on a consolidated salary of Rs. 25,000/-. The employee does not want any PF deduction out of his salary. He was not member of PF in the past also. Can this company do this. Is there any PF violation if PF is not deducted out of his consolidated salary.
The employee can stay out of PF.
Sir my company said my ctc is 13000 but basic is 11607, however my pf of 12% is deducted from basic salary i.e 11607 and 12%of employer is also deducted from the salary. Is it legal to deduct both the pf 24%from my salary????
No, employer contribution should be separate component in your compensation. The company cannot deduct employer contribution from your salary.
Epf limit is 15k…plz tell me one thing… We consider total salary ya basic salary for pf… Luke my salary is 35k and my basic salary is 14k thn I my pf is deduct or not… Plz tell asap.
Should consider total salary except components such as HRA.
gross salary for pf 21000
net payable salary 19000 ( due to less paid days) of 20 paid days
is pf deductible is Rs. 1800
or
18000/31*20.
PF amount = 12% of (Gross – HRA).
Dear sir, I have a lot doubts in the following matters, please clear my doubts
1. if a company has 12 employees and 8+ trainees , do the company need to register under EPF ?
2. Even if the company has to maintain EPF, do an employee whose salary is less than 15000/- need to contribute to PF?
3. If the employee has 10000/- salary, net amount payable after deduction of leave is 9000, in which amount PF is calculated?
1. if a company has 12 employees and 8+ trainees , do the company need to register under EPF ?
Ans: No
2. Even if the company has to maintain EPF, do an employee whose salary is less than 15000/- need to contribute to PF?
Ans: Yes.
3. If the employee has 10000/- salary, net amount payable after deduction of leave is 9000, in which amount PF is calculated?
Ans: PF = 12% of (Gross pay minus HRA and other heads excluded from PF)
Dear Sir,
As a employee if i do not want to get my PF deducted, is there any option or way out?
There is no way out. You have to remain a member of PF until the end of your employment with your current employer.
Dear Sir,
one of the security agency paid security gross salary Rs. 9000/- and deducted PF amount 12% on Basic. i told him In case the wage drops below the minimum wages, PF should be calculated on minimum wages but they are not going to agree with me and told me nobody will calculate on the Gross. what should i do ? which notification i should show them ?
Basic DA Conv TOT. Food Allow Gross Salary PF ESI Net Salary
3000 2500 2500 1000 9000 360 158 8483
There was a circular from the PF department that PF should be calculated at least on minimum wages. However, the circular is not currently in effect on account of a court case regarding splitting of wages for the purpose of PF calculation.
If any employee say Mr. ABC join any Company XYZ and at the time of joinig his Fix Basic is Rs. 30000/- but company restricated his Basic to Rs. 15000/- for PF deduction..
In the month of Mar he work for 13 days so his Earning Basic will be Rs. 12581/- but Comapny deducted EPF on Rs. 6290/- considering Fix basic 15000
i need u r opinion in this case
The PF calculation done by the company for March is correct.
Dear sir, madam
Which are all allowance come to pf scale i what know this process because our employee taken 20000 above salary but pf will decoration is Employee s and employer dedication its coming 3800
our Description is give below
Basic Salary
HRA
Conveyance
Medical Reimbursement
Special Allowance
total (Basic Salary+Conveyance+Medical Reimbursement+Special Allowance)
Dedication of pf (Total -E.pf+ErPF also = net home)
That only our employeee salary will less Know tell me other then allowannce not app able for PF
All heads of pay in your list, other than HRA, should be considered for PF calculation.
Hi sir initially my basic was (basic+da) is 15000 and 1800 used to cut for pf I left the job and rejoined in the same company with new empty I’d and I am asking them to cut pf and my basic+da is 17500 they t telling I am not eligible for pf I am having UAN number is there any chance for me for pf contribution and
One more doubt they r telling that there is a chance that they will be cutting 1800+1800 for my salary and contribute in my pf that means employer and employee deposit from my side only is it possible and any advantage of that pls tell me sir.
If you rejoin the company, your PF contribution should be continued with.
1) I working in Small scale company last I had salary 10000 including all , was it mandatory to have or maintain PF account??
2 ) now my salary is 18000 ,now I want maintain my PF .. is it ok?
3) what is mean that minimum wage is 15000 for PF recent curriculum
1) I working in Small scale company last I had salary 10000 including all , was it mandatory to have or maintain PF account??
Ans: PF is mandatory if your company has 20 or more employees.
2 ) now my salary is 18000 ,now I want maintain my PF .. is it ok?
Ans: Yes, it is.
3) what is mean that minimum wage is 15000 for PF recent curriculum
Ans: If you salary (for PF calculation) is more than Rs 15,000, then PF should be calculated on at least Rs 15,000.
WHAT IS THE CALCULATION IF THE BASIC SALARY IS 7500/- AND THE GROSS SALARY 12500 (INCLUDING ALL OTHER ALLOWANCES) AS PET EPF RULES.
PF = (Gross minus HRA) x 12%
If the basic salary of the anyone is 40,000/- per month
Is it mandatory to deduct PF?
If yes, What could be the min. employee and employer contribution for the said basic salary?
Thanks!
Yes, it is mandatory if the employee is already under PF. The minimum PF (employee and employer contribution) shall be Rs 12% of Rs 15,000. However, both the employer and employee can contribute more than 12% of Rs 15,000 if they wish.
hi ,
if we join a new employee in our company whose salary is 15100, is it elligable for epfo or is that enough to contribute for esic.
if so if any GO is there pls give us.
1. The new employee is eligible for EPF.
2. The employee should be covered under ESI.
My ugc funded college employer and my PF deduction is 10% each not 12%.
What are consequences?
Are we eligible for EPS?
Incorrect PF deduction can attract penalties under law.
What is the procedure for limiting PF contribution to INR 1800 i.e. 12% of 15,000 instead of 12% of PF Gross? Is there a form for this? Whom should such form be sent to?
There is no process per se. Please ensure that the PF ECR details are accurate.
pls. clarify if any change in pf wage basic amt. rs.15000/- ? ded. wage rs.25500/-
Basic wage limit for the purpose of PF is Rs 15,000 per month.
My Salary 60000/Month, But still my company debit pf amount only 1800/-
Other company debit 12% of total salary. why is different.
As per PF rules, the minimum PF amount your company should deduct is Rs 1,800 for your salary. However your company can also deduct 12% of salary as PF if it so wishes.
There is nothing wrong in what your company is doing.
Hi sir
My sister working in private company since one year
Her CTC monthly is 55000
Their company is under EPF registered
At time of joining my sister didn’t know and they also didn’t deduct EPF
Now they are saying fill form that u don’t want EPF or if u want EPF then they will deduct both share from her salary n they will show to govt one salary deduction
Now u tell me will she get EPF
And also show me legal proof show that she can show to her company
Thanks
Your sister can ask her company to include her under PF. She need not show any documentary proof for inclusion under PF.
My query is – is minimum wage same as Basic salary. If not then PF act may not be applicable to Basic ?
In our organization, the sum of Basic + other allowances are more than 15000. However, the PF has been deducted from Basic sum only. Hence in some case , where the employee is earning basic lesser than 15000 , his PF deduction is less than 1800.
Is it legally allowed?
No, PF should be calculated on gross (after excluding heads such as HRA) and not just on Basic.
With regard to your question, the answer is, “it is not legal.”
Sir,
A pf member left A company and join B company where his basic wages is more than 15000, can he be restricted to become pf member or he has to continue as a pf member, pls clarify with any circular.
thanks
He shall continue to be a PF member. He cannot opt out of PF when he moves to the new company even if his salary in the new company is more than Rs 15,000 per month.
Hi,
I would like to know if an employee is receiving Rs.7000 per month (consolidated) which is less than minimum wages as per the state wage table. Do that person need to contribute to PF?
Yes