Employer's contribution to PF
39 views
Skip to first unread message
Pooja Agrawal
Jul 23, 2010, 8:04:41 AM7/23/10
to csmy...@googlegroups.com
Dear All,
Kindly provide me with your views on this:
Employees drawing basic salary upto Rs 6500 p.m. have to compulsorily contribute to the PF and employees drawing above that have an option to become a member of the PF. In such cases where an employee having salary above Rs. 6500 agrees to become a member and contributes 12% of his basic salary to the PF, what would be the employer's contribution. Is Employer bound to contribute an equal amount i.e. 12% to the PF ?
Better clarity on my query is given by the illustration below:
Query I : 'A' has basic salary of Rs. 10, 000 p.m. and is a member to the fund and contributes 12% i.e. Rs, 1200 p.m. Is the employer bound to contribute Rs. 1200 or he can take a shield that since the employee has voluntarily contributed to the fund, he is liable to pay 12% of the max. limit to which the act applies i.e. 12% of 6500 = Rs 780 and thus pay only Rs. 780 p.m as his contribution.
Query II : Since 'A' is contributing voluntarily can he contribute a lower amount than 12% of his basic pay i.e. in above case can he contribute just Rs. 780 instead of Rs. 1200 p.m.
Regards,
Pooja Agrawal
Kindly provide me with your views on this:
Employees drawing basic salary upto Rs 6500 p.m. have to compulsorily contribute to the PF and employees drawing above that have an option to become a member of the PF. In such cases where an employee having salary above Rs. 6500 agrees to become a member and contributes 12% of his basic salary to the PF, what would be the employer's contribution. Is Employer bound to contribute an equal amount i.e. 12% to the PF ?
Better clarity on my query is given by the illustration below:
Query I : 'A' has basic salary of Rs. 10, 000 p.m. and is a member to the fund and contributes 12% i.e. Rs, 1200 p.m. Is the employer bound to contribute Rs. 1200 or he can take a shield that since the employee has voluntarily contributed to the fund, he is liable to pay 12% of the max. limit to which the act applies i.e. 12% of 6500 = Rs 780 and thus pay only Rs. 780 p.m as his contribution.
Query II : Since 'A' is contributing voluntarily can he contribute a lower amount than 12% of his basic pay i.e. in above case can he contribute just Rs. 780 instead of Rs. 1200 p.m.
Regards,
Pooja Agrawal
kanika sharma
Jul 23, 2010, 8:29:11 AM7/23/10
to csmy...@googlegroups.com
HI Puja ,
The contribution towards P.F. by the employee & employer is 12% of the basic salary of employee. It means it depends upon the company norms whether in equal proportion of 12% of basic salary is contributed by employer & employee both or max.amount be contributed by employer . Thus, employee can contribute less amount.
Regards
Kanika Sharma
--
Find eNewsletters of ICSI Mysore at: http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx AND www.esnips.com/web/icsimysore
You received this message as you are subscriber. To unsubscribe email to: csmysore-u...@googlegroups.com
Alok Gupta
Jul 23, 2010, 1:39:46 PM7/23/10
to csmy...@googlegroups.com
Hi,
I would like to know, if an employee is given total salary of Rs. 8000/-, to avoid PF contribution, can we make his Basic Salary Higher than 6500/-?
Is there any legal norms about Basic Salary vis-à-vis to Total Salary of an employee?
Rgds,
Alok
Vivek Aggarwal
Jul 26, 2010, 7:38:57 AM7/26/10
to csmy...@googlegroups.com
Dear Pooja
Query 1 - The employer is bound to contribute 12% as per the act.
Query 2 - The contribution can be at a higher rate but not at lower rate.
Regards
Vivek Aggarwal
From: Pooja Agrawal <agrawal...@gmail.com>
To: csmy...@googlegroups.com
Sent: Fri, 23 July, 2010 5:34:41 PM
Subject: [CSMysore] Employer's contribution to PF
Reply all
Reply to author
Forward
0 new messages