Provident fund & e.s.i.

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rajneesh sharma (Querist)
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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.

JAHNVI

JAHNVI (Expert)
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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.

rajneesh sharma

rajneesh sharma (Querist)
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13 September 2011 there is no d.a. our's is deducted on 20k

JAHNVI

JAHNVI (Expert)
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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

rajneesh sharma

rajneesh sharma (Querist)
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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/-

JAHNVI

JAHNVI (Expert)
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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)

rajneesh sharma

rajneesh sharma (Querist)
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13 September 2011 salary limit is Rs.6500/- not the p.f. limit. As per my knowledge the %age of p.f. contribution is 12% i.e. 8.33%+3.67%.

now the question of Rs.780/-
(6500*8.33%) + (6500*3.67%) = 780/-

JAHNVI

JAHNVI (Expert)
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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

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