PF contribution
Prashant
(Querist) 01 December 2009
This query is : Resolved
I am working in one Limited Company. In my salary, my BASIC is 10200/- So the company is deducting Rs 1224/- i.e. 12% on basic as my contribution to PF
Now I would like to know what is the rule for EMPLOYER'S Contribution. Somebody told me that for Employer's contribution there is a celing of Rs 6500/- i.e. eventhough my Basic is 10200/- co will contribute only Rs 780/- (i.e. 12% of Rs 6500/-)
Is it true or can company contribute equivalent to my contribution.
In my CTC, the co has shown Rs 1224/- as its contribution also. So both are contributing 12% but how do I check the co's contribution & whther there is really ceiling of Rs 6500/- & if yes then co. cannot show Rs 1224/- as part of my CTC & should only show Rs 780/-
Thanks in advance
Manish Singh
(Expert) 01 December 2009
you are not compulsorily covered under the EPF act & deductions. so ask your employer not to deduct any amount.
Raj Kumar Makkad
(Expert) 01 December 2009
If your company is equally contributing Rs. 1224/- then what is harm to you?
Now the ceiling has been enhanced to Rs. 10,000/- instead of Rs. 6500/- and your company is rightly deducting and contributing @12% on your wages. There is no illegality on the part of your employer and you are duly benefitted.
Manish Singh
(Expert) 02 December 2009
the ceiling limit of the EPF is still Rs. 6500 and it has been proposed by the EPFO to raise it up to Rs. 10,000 and also to reduce the employees limit to 10 to provide the benefit at large.
also, as per your query, the employer is correct (You are not compulsorily covered under the act) contributing 12% of the basic pay DA , Cash value of food concession and retaining allowance. the limit of rs. 6500 is the contribution up to which the company shall be paying towards you. e.g. currently, the contribution is rs. 1224 so the company can maximum contribute up to Rs. 6500.
A K CHANDOK
(Expert) 03 December 2009
Though the limit is 6500 but If an employee was earlier a member of EPF, then he will continue to be a member even if his salary exceeds 6500. However, for a new entrant ,if salary is above 6500, he is an excluded employee but can become a member of the fund and schemes on joint request but employer,s share may be restricted if desired by the employer.In this case, it is good that employer is contributing equally which is even more beneficial.This can be checked on receipt of Annual Account Slip.
