For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF. The total of the employee and employer contribution is deposited in a fund created with the Employee Provident Fund Organization.
How PF is calculated on salary?
For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF. The total of the employee and employer contribution is deposited in a fund created with the Employee Provident Fund Organization.
On what salary PF is deducted?
For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF.
Is PF mandatory for salary above 15000?
If you are drawing a salary higher than Rs. 15,000 per month, you are termed a non-eligible employee and it is not mandatory for you to become a member of the EPF , although you can still register with the consent of your employer and approval from the Assistant PF Commissioner.
How much PF will I get on 15000 salary?
However, an employee who is drawing ‘pay’ above prescribed limit (at present Rs 15,000) can become a member with permission of Assistant PF Commissioner, if he and his employer agree. The contribution paid by the employer is 12% of basic wages plus dearness allowance plus retaining allowance .
Is PF calculated on gross salary?
Gross Salary is employee provident fund (EPF) and gratuity subtracted from the Cost to Company (CTC). To put it in simpler terms, Gross Salary is the amount paid before deduction of taxes or other deductions and is inclusive of bonuses, over-time pay, holiday pay, and other differentials.
How much is PF of basic salary?
For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF. The total of the employee and employer contribution is deposited in a fund created with the Employee Provident Fund Organization.
Is PF mandatory for salary above 21000?
Apparently, Bharatiya Mazdoor Sangh (BMS) has urged the government not to deduct PF of those persons whose monthly salary is Rs 15,000. They said the deduction as per Employees Provident Fund (EPF) should be done for those persons receiving Rs 21,000 as monthly salary.
What is the minimum basic salary for PF deduction?
If your starting salary is above 25000 Rs then it is not mandatory to deduct PF . But if you are already a member of EPF and your monthly salary increases to above 25000 Rs then you have to continue your PF contribution, but PF will be calculated on a limit 0f 15000 salary only.
What is the maximum salary limit for PF deduction?
As there is no contribution by the employer (i.e., the government), employees of the government sector can contribute a maximum of Rs 5 lakh into their PF accounts in a financial year to earn tax-exempt interest.
What is PF rule?
The rule requires all PF accounts to be split into separate accounts – one with the taxable contribution and interest earned on that component, and another with the non-taxable contribution that shall include the closing balance of the PF account as on March 31, 2021 and all fresh non-taxable contributions and interest ...
What is CTC salary?
Cost to Company or CTC as it is commonly called, is the cost a company incurs when hiring an employee. CTC involves a number of other elements and is cumulative of House Rent Allowance (HRA), Provident Fund (PF), and Medical Insurance among other allowances which are added to the basic salary.
What is your basic salary?
Basic salary, also called base salary, is the amount of money a salaried employee regularly earns before any additions or deductions are applied to their earnings . Additions and deductions to basic salary can significantly affect the size of an employee’s paycheck.
Who is eligible for PF?
Any salaried employee with a monthly income of less than 15,000 INR needs to compulsorily be a member of the EPF. An employee with a monthly income higher than INR 15,000 (the current prescribed limit) is eligible to become a member of the EPF if he/she gets approval from the Assistant PF Commissioner and employer.
