In my current company
my basic salary is 22083
PF deduction is 780
here my question is pf shud b 12% of basic salary..
but they deducting only 780 rs..
can u tel me how it is 780?
Thanx n regards,

From India ,
Dear Mr. Raj

Following is the text from EPF & Misc Act. The deduction from your salary is on Rs. 6500.00 only.


Rates of Contribution:

a) The Employees' Provident Fund Scheme

In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month. Voluntary higher contributions are also acceptable at the joint request of the member and the employer . However, the rate of contribution is 10% in respect of the following categories of establishments:

Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.

Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick industrial companies ( special provisions ) Act 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction.

Any Establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth.

Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than spinning sector), (e) Guar Gum Industries/Factories.

b) The Employees' Pension Scheme

From and out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs. 6500/- per month is segregated and credited to the Employees' Pension Fund in A/C No. 10 ( w.e.f. 1-06-2001 ).

The Central Government also would contribute at the rate of 1.1 / 6% of total wages.

c) Employees' Deposit Linked Insurance Scheme:

No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).

From India , New Delhi
Mr.Anil is right. i want to add only that Rs. 6500 is statutory limit and PF may be deducted on 6500 only even if your Basic is higher than that. it is to give you more in hand and to reduce the employer's liability on account of its PF contribution which is equal to your cont. in pvt co, every thing is part of CTC, so no matter, how much is deducted and how much is paid.
From India , Gurgaon

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co™

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server