PF - Applicability of

Ajay (CA Job) (512 Points)

19 March 2011  

Can anyone please tell the exact position as to the applicability of limit of Rs.6500 in case of PF Deduction (Employer Conribution)? Is the limit applicable only for computing the contribution by the employer towards Pension Scheme @ 8.33%?

Can u please illustrate through the follwoing figrues:

Case 1

Basic + DA at the time of joining  = Rs.4000 which was subsequently raised to Rs. 7000 in the next year. What will be employers' Contribution in 1st and 2nd year?

Case 2

Basic + DA at the time of joining  = Rs. 10000. What will be employers' Contribution?

Thanks in advance...