13 November 2010
IF AN EMPLOYEE HAVE BASIC SALARY 15000 AND HE WORKED FOR HALF OF MONTH,THEN ON WHAT BASIS PF TO BE DEDUCTED. THESE 2 SITUATIONS ARE AS:- a)780*15/3O=390 b)15000/2=7500 6500(MAXIM. 6500)*12%=780
In your query you states that the basic pay is Rs15,000/-.
As per EPF Act any body who draws salary more than Rs.6500/-as basic and D A they are not coming under the purview of PF ACT. Provided this is the first employment for him/her.
On the other hand if he/shehad already enrolled him/herself with EPF earlier and now joined in your firm for Rs.15,000 as basic pay then it is obligatory on the part of employer to cover the employee and recover the EPF amount upto the basic pay of Rs.6,500/- only how ever the employee can give an under taking to the Management to deduct PF for Rs.15,000/- @ 12% and employers contribution is only for Rs.6500/-
The management must obtain a written consent from the employees for deduction as well as non deduction of PF from the employees.
CAclubindia
