13 September 2011
Please tell me the limit of the deduction of P.F. & E.S.I. from the employee. If i got 20000/- p.m. salary then what will be the deduction to be made from salary.
13 September 2011
P.F is deducted on basic salary + D.A. .@ 12.5% subject to maximum amount of PF should be deducted 6500/- pm. ( it mean your co. cannt deduct PF excedding 6500/-pm) you have mentioned your salary as 20000/- but what is your basic salaray & D.A. ,, P.F. is calculated on it. so far ESI is concerned ESI is deducted only to those whose salary is below.15000/- pm.
13 September 2011
you are not getting my point! As I told you company can deducte on basic+da @12.5% but maximum is 6500/- now your salary is 20000/- & co. can deduct 12.5% on it it mean it is 2500/-.company is following provisions.. in case your salary is 55000/- in that case co. can deduct maximum to 6500/- only. even though your co. has no basic or da policy, but co. are following provision if it deduct pF @ 12.5% on salary now your are clear
13 September 2011
i understand that the company is liable to contribute upto the extent of rs.780/- only which is on rs.6500/-. but is this limit is applicable also on employee. that i also have to deduct rs.780/-
13 September 2011
now what is the amount of rs. 780/-?
As both employee & employer contribution should be equal. however if employee want at his will want to contibute more he can contribute.
I am explaning you 12.5% of salary but in no case to total PF duduction per month exceeds 6500/-.its PF provisions. your salaray may be 100000... as per calculation of 12.5% you have deduct PF at 12.5% that is 12500/- per month but co. can deduct maximum 6500/- on your salary as PF contribution.
how can you come to figure of 780/-??? is your co. deductiong PF of 780/-? it mean your co. also contribute 780- your total PF per month is 1560/- ( 780*2)
13 September 2011
Sorry to say you but you are wrong. PF limit is 6500/- not salary limit. Maximum co. can contribute / deduct by way of contribution is 6500/-.. may be you get lacs of salary but your PF deduction is 6500/- I guess you have knowledge then let put the discussion to end. ok
CAclubindia
