PF

Dear Aparna,

I think as per your request following info can help:

As per PF Act, an Employee whose Basic +DA is upto Rs.6,500/- p.m  the PF Calculation would be 12% of the Actual Amount.

If an employee is getting more than Rs.6,500/- as Basic+DA, in this case both the parties has to agree upon PF Deduction on Basic+DA(Whatever is amount).  It means that the Employer and the Employee are ready for the PF Contribution.  If any one of the Party (Employer or Employee) is not ready to make the contribution above the Limit of Rs,6,500, then the PF would deduct on Rs.6,500/- only.

As you are aware that under this PF Act Two(2) Schemes are running i.e. Provident Fund and Pension Scheme.

The Employer Contribution is divided into Two Parts;

First Part is for Pension, in which the upper limit is Rs.6,500/- (Basic+DA) and the Contribution Rate is 8.33%.

 The second Part means remaining from the Total Contribution (12%) goes to Provident Fund.

In present senario, almost all the Companies are working on CTC concept, in which both the contribution shows in your Total Pakage. 

Thanks Sir .

Very needfull information for new person.

Animesh

here is the data, all the employees basic +DA is above 6500/-, which means both the parties have to agree for the PF deduction, if employee doesnt have to participate , even then does the employer has to particpate ?this is not very clear..