Pf_query

Stat Audit 873 views 4 replies

Hi!! all..

               I have a doubt with respect to PF. My client calculated the employer's contribution for PF as below;

On basic salary of Rs.60000:

6500*12%=780

He has calculated on only Rs.6500 and not 60000. Is tat correct? I believe the employer should either

a) Not contribute anything for employees with basic exceeding Rs.6500

                                                      (or)

b) Should deduct on the entire basic (60000, in this case).\

Please clarify...

Thanks in advance to all..

        

Replies (4)

I Have The Same Confusion if ur doubts are cler then plez tell me also at ---------- cachandansingh @ yahoo.com

Hai..

There is nothing wrong in deducting pf on Rs.6500/- as it is not mandatory to deduct. so he can contribute any amount voluntarily for those employers whose salary exceeds 6500/- as welfare measure.

Hello

I think that as per section 6 of THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952,

Contributions and matters which may be provided for in Schemes. – The contribution which shall be paid by the employer to the Fund shall be ten percent. Of the basic wages, dearness allowance and retaining allowance.

This 10% is replaced to 12%.

So he should contribute 12% of 60000 instead of 6500 if he is covered by EPFO.

There is a provision in EPF & Misc Act to not deduct PF when Basic salary amounting Exceeding Rs 6500/-p.m.  For such employer shd take a form duly signed by employee. Deduction by employer is corect in my opinion.


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