is contribution to PF compulsory if an employee gets salary more than the said PF limit
I belive the limit is Rs.6500
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 02 March 2010
Yes its compulsary...
Clarification about Contribution After revision in wage ceiling from Rs.5000 to Rs.6500 w.e.f. 1.6.2001 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.6500 per month towards Employees’ Pension Scheme. The employer’s share in the Pension Scheme will be Rs.541 w.e.f. 1.6.2001.
Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is required to be paid upto a maximum limit of Rs.6500.
The employer also will pay administrative charges @ 0.01% on maximum limit of Rs.6500 whereas an exempted establishment will pay inspection charges @ 0.005% on the total wages paid.
Notes: The above clarification is given by taking wages upto a maximum of Rs.6500 towards wage (basic+DA).
Since an excluded employee i.e. drawing wages more than Rs.6500 can also become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.10, 000 per month, his share towards provident fund contribution will be Rs.1200 e.g. 12% and employer’s share towards provident fund contribution will be Rs.659 and Rs.541 towards Employees’ Pension Fund. |
praveen
(Chartered Accountant)
(6971 Points)
Replied 02 March 2010
can you give me any source link or section like that.
anywayz thanks for the info
Live class on PF & ESI Enrollment & Returns Filing(with recording)