Pf act

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2012 Hi Friends,
Can any one clarify 2 thing

there is 1 section in PF act , that allows Employer to Pay PF only on basic salary + DA of Rs 6500 ( it means there is a Cap of rs 6500 whether the employee is getting higher salary than rs 6500)
employer has to contribute only Rs 780 (6500*12%)
can any one tell me the relevant section ?

& 2nly there is 1 more thing , in PF act , there is one more option is available to Employees , if the employees having the basic salary of more than 15000, then the company can give him the option , whether he want to opt PF act or not to opt
can any one tell me the relevant section ?

waiting for your positive reply

Thanks in advance

visu iyer

visu iyer (Expert)
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30 May 2012 The ceiling contribution is Rs.6500/- on total salary except HRA (Basic +DA is out dated. Higher contribution is optional.

Regarding Q.2, it is no such provision for basic is more than Rs.15000/-
PF is applicable is for all subject to ceiling of Rs.6500/-

However, it is optional if any the employee submit form 11 exercising his willingness for non contribution. for which it does not require that basic is Rs.15000/- it can be >6500/-

visu iyer

visu iyer (Expert)
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Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2012 Thanks for your Reply Visu,

Visu i need clarification on the following things
1. u r saying that ceiling contribution is 6500 , i thing it is salary

2. As per u , salary means total salary - Can u tell me the relevant section , because accoding to me it is basic pay DA , Cash value of food concession and retaining allowance

3. u r saying if his salary exceeds 6500 then there is no liability of employer to contribute PF

Waiting for your reply visu

Thanks in advance

visu iyer

visu iyer (Expert)
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30 May 2012 1.Yes 12% on the total salary except HRA subject to ceiling of Rs.6500/- ie Rs.780 the equal contribution per month

2. it is total salary except HRA
Section reference is not available from the Act, but it is the instruction given to EOs of the Dept.

3. It is optional upon filing form 11. by virtue of this; no contribution from both employer and employee.

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2012 Thanks Visu , for your valuable comments

but can u tell me the relevant section or case law , circular or notification

its urgent

thanks in advance

& but i think there is the limit of 15000 , i am not sure , bcoz i read it 3.-4 years back

visu iyer

visu iyer (Expert)
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30 May 2012 Rs.15000 for ESI and not for PF

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2012 Yes i know there is the limit of rs 15000, in ESI Act,

but i think there is the limit in PF act also

but can u tell me the relevant section , Circular , Case Law or notification for Rs 6500

waiting for u r reply

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Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2012 Hi ,
still waiting for your replies experts