30 December 2014
PF APPLICABLE ON THE BASIS SALARY OF EMPLOYEE. IF EMPLOYEE BASIS SALARY UP TO RS. 15000/- YOU HAVE TO PAY THE PF @ 12%. EARLIER LIMIT IS RS. 6500/-
30 December 2014
Mr. Vaibhav I think you are not aware about the amendments and also as per your reply koi pf kate ya na kate 15000 salary hone par ye kesa rule hua?....please dont reply if you dont know the answer
30 December 2014
Pl read carefully..I said that if your Basic salary is more than 15K then no PF is applicable to such employee.
However when you have deducted PF for such employee once & if his Basic exceeds 15K then you will be required to deduct PF for that employee even though his salary is more than 15K.
In PF there is no concept of additional PF rate.
12% of Rs 1500 is the mandatory contribution payable by the employer. But if the employer is willing to contribute on a higher salary, then there is no bar for that.
Similarly, an employee is free to make any percentage higher than 12% as his share of contribution and that may extend up to 100% of his basic salary.
With effect from September 1, 2014, wherever the employer and employees have opted to contribute on a salary exceeding INR 6,500/ month,
such an employer and employee will have to exercise a fresh option (within 6 months or such an extended period by the authorities) to contribute on a salary exceeding INR 15,000/ month,
subject to the conditions that such a member would have to contribute the Central Government’s share of contribution at 1.16% on the salary exceeding INR 15,000/ month from his/ her share of contribution.
In case of failure, contribution to the EPS will be limited to 8.33% of INR 15,000/ month effective September 1, 2014.
CAclubindia
