Provident fund

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Dear Sir,

Our company is into the process of PF registration as the number of employees has been increased to 20. So now my query is that as Basic Pay of all employees is more than Rs 6500/- Whether we are required to deduct PF on any one's salary...???
And whether employer is required to make any contribution for PF..??

Ram Avtar Singh

Ram Avtar Singh (Expert)
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19 November 2013 As per law EPF is mandetory on 6500/- above 6500/- Employer not bounde to deduct EPF. Employer will pay only on 6500/-

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Sir,

As per EPF act employees receiving above Rs 6500/-as basic pay are excluded employees. So whether employer need to contribute any part on behalf of these employees i.e 12% on Rs 6500/- or any higher amount???

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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19 November 2013 No need to deduct EPF for employee receiving above 6500/- p.M.

if once deducted EPF then need to deduct EPF up to 6500/- ither employee received above 6500/-

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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Sir,

It means our company only need to get registration under epf as no. of employees has been increased up to 20. But need not to contribute any amount for PF for any employee as no employee has basic pay of less than or equal to Rs 6500/-...???

Ram Avtar Singh

Ram Avtar Singh (Expert)
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19 November 2013 as per EPF act you are right.

read more detail bu this link about EPF & ESIC

https://www.caclubindia.com/experts/calculation-of-esi-pf-271885.asp

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2013 Thanks a lot Sir....:)

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2013 I still have one question if it's optional for the company to contribute for employees above basic pay of Rs 6500/- then why does generally companies that have registration under epf act make contribution for employees having basic pay above Rs 6500/-....???

In regular industry practice companies make contribution for every employee....

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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20 November 2013 The are paying more than EPF and Exgratia, Reward, Medical allowance etc. because managment know his employee working efficiancy. they need more from his employee. so he paid more to employee.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2013 Sir,

Is there any particular structure of salary defined anywhere in law??
i.e this much should be %age of Basic, D.A or HRA....
or it can be defined by company at it's own discretion???