by Mr. Gautham,
Hinote, Chennai
PF – Wage Ceiling Enhancement to Rs 15,000 Effective 01 -
September - 2014
The Provident Fund (PF) department, in its circular dated
28 - August -2014, has notified the wage ceiling enhancement to Rs.15,000 per
month from Rs. 6,500 per month, effective 01-September - 2014. Please ensure
that PF deduction and contribution are calculated as per the new wage ceiling
of Rs. 15,000 from September 2014 onwards.
 |
| T.E. Gautham. Hinote Systems |
In other words,
(a). If the PF wage of an employee is more than Rs
.15,000 per month:
The minimum mandatory PF contribution (& deduction)
shall be Rs. 1,800 per month (12 % of Rs 15,000).
(b.) If the PF wage of an employee is less than Rs.
15,000 per month:
The minimum mandatory PF contribution (and deduction)
shall be 12% of the actual PF wage.
If any of your employees has been out of the PF net so
far on account of their having been receiving PF wage of more than Rs. 6,500
per month, such employees will now come within the ambit of PF if their PF wage
is now is less than or / equal to Rs.
15,000 per month.
Please note that the new PF wage ceiling could impact the
compensation cost incurred by your organization on account of the increase in
employer PF contribution. The employees’ take home pay too could get impacted.
About the author..
Mr. T.E. Gautham is CEO at Hinote Systems, Chennai.
Hinote
1, Venkatarathinam Nagar Extn,
Second Street
Adyar,
Chennai - 600 020
Phone: +91 44 4330 7244
sales@hinote.in, info@hinote.in
Tel: +91 44 4330 7244
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