AJIT KUMAR (COMPUTER OPERATOR) 30 October 2013

Pf calculation above rs 6500/-

Dear Sirs,

I want to know an employee getting salary Rs:6,500.00 get the benefit of both parts, the deduction from employee salary PLUS the employer part (eg. if calculation made as 6500.00 x 12% = 780.00) then deposit in employee's PF account will be 780.00 (employees part) PLUS 780.00 (employers part) total 1560.00 rs.

If the same employee continues in same company, gets salary increment to Rs:10,000.00, so how will be the calculation, will he be entitle to get the EMPLOYER'S part ? And how will the calculation be done.

Can anybody help me in this regards. What does the law states.

Thanks/Regards
Ajit Kumar

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2 Replies

Mr.Saroj Kumar Hota (A.G.M.(P&A)) 31 October 2013

Dear Ajit,

Since the employee has already been covered under EPF&MP Act under the same employer ,he will be continued to be the member under the said Act even after enhancement in his salary to Rs.10000.But the employer's share of PF contribution will be calculated over the salary ceiling of Rs.6500/- only.However if both the employee and employer give consent ,then only PF contribution @12% of salary beyond Rs.6500/- can be deposited by each of them.

Yours truly,

S.K.Hota