Musaib k (Article) (64 Points)
21 February 2012I know admin. charges on PF are 1.1% of basic. If an employee contributes more than the limit of Rs. 6500,that is he contributes on his actual basic( which is more than Rs. 6500),then will admin. charges be deducted on 6500 or the actual basic on which employees cont. was deducted. In one of the firms an employee was deducting his contribution on RS. 20,000( i.e. 12% on 20,000= Rs. 2400) an dthe firm was paying admin. charges on Rs. 20,000 and not Rs. 6500
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 23 April 2012
Where the employee has opted to deduct PF on a salary of more than Rs 6500/- and also opted for FPS on more than Rs 6500/-,such employer has to deduct Admn Chages on a salasy on which PF is being deducted i.e. in your case on Rs 20,000/-.
So the employer is right in doing so.
kkm
Musaib k
(Article)
(64 Points)
Replied 24 April 2012
But why would the employer bear the extra cost for the employee,he can ask the employee to contribute only on 6500 and thus he can reduce his admin. charges ???
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 24 April 2012
Sir,
The above statement stands corrected as "The employer opts",it is not the employee (I am sorry).
kkm
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