No. It is set at a minimum of 12% of the employees basic salary
ER Stands for the Employer Contribution in your PF Amount.
An employee whose drawing wage or basic salary has upto rs 6500/- responsible to pay pf contribution 12 % from employer & employee respectively.
Yes. CTC includes both Employee and Employer PF contributions
On the basis of the Basic Salary component that is part of the salary. The amount contributed is 12% of the basic salary from employee as well as an equal contribution by the employer
The benefit is the fact that Rs. 1560/- is added to your PF account that will earn an interest of 8.5% every year. This would add up to a handsome amount at the end of say 5 or 10 years of service.
To record employee contributions to the provident fund: Debit Provident Fund Expense and Credit Employee Contribution Payable. To record employer contributions: Debit Provident Fund Expense and Credit Employer Contribution Payable.
You need to fix a certain amount as basic salary if you want to deduct PF. set a minimum number as basic salary and calculate PF on it. The remaining amount based on piece rate can be added a different component in the persons salary
Yes it is considered as cost to company, since the benefit would be enjoyed by the employee at a later stage or when he resigns from the company he can transfer or with draw the complete PF money..
PF contributions depends on you basic salary. Eg. if you have worked for 15 days , then on 15 days basic, your pf contribution will be calculated i.e 13.61%of basic .
A social security system known as Provident Fund was established in order to encourage employees to save and to benefit them in retirement. Each month, the employee and the employer contribute to the Provident Fund (PF). With a few notable exceptions, an employee’s contribution to the PF may only be withdrawn during the duration of their job. Employers registering with PF are required to submit their PF returns on a monthly basis. Each month’s 25th is the deadline for completing the PF return files. We shall go into great detail regarding the several forms that are used to file PF returns here. Employers can utilize the Unified site to conveniently file their PF returns.
no!
Right from day one when an employee joins, his PF benefits must begin. The PF will be paid out when the employee retires or resigns permanently and will not be taking up any job for at least 3 months. In case of a job switch, the pf account will get transferred to the new employer