Providend fund
This query is : Resolved
18 February 2013
Dear Sir
Is it mandatory for employer to contribute P.F. If the employee basic salary is more than 6501/- per month and what is the basic salary in which P.F. is mandatory.
Is it mandatory for employer to contribute P.F. If the employee basic salary is more than 6501/- per month and what is the basic salary in which P.F. is mandatory.
18 February 2013
As per PF Act 1952, ceiling limit is6500/M i.e. (Basic+DA) of an employee.
If the employee’s emoluments exceed6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
Employee Status:-
If Employee is already member of PF Scheme.
Emoluments :-
1. Up to 6500/M (Basic +DA) -Mandatory @ 12% of Basic +DA.
2. 6501/- & above (Basic +DA)
A.Mandatory @12% up to 6500/M.
B.Above 6500/M it’s up the organization & its policy.
If Employee is not member of PF Scheme or New Entrant.
Emoluments :-
1. Up to 6500/M (Basic +DA) -Mandatory @ 12% of Basic +DA.
2. 6501/- & above (Basic +DA) - It’s not Mandatory, but generally in the interest of employees organizations cover their employees under the scheme.
If the employee’s emoluments exceed6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
Employee Status:-
If Employee is already member of PF Scheme.
Emoluments :-
1. Up to 6500/M (Basic +DA) -Mandatory @ 12% of Basic +DA.
2. 6501/- & above (Basic +DA)
A.Mandatory @12% up to 6500/M.
B.Above 6500/M it’s up the organization & its policy.
If Employee is not member of PF Scheme or New Entrant.
Emoluments :-
1. Up to 6500/M (Basic +DA) -Mandatory @ 12% of Basic +DA.
2. 6501/- & above (Basic +DA) - It’s not Mandatory, but generally in the interest of employees organizations cover their employees under the scheme.
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