What is the new rule of PF deduction?

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 …

Is PF applicable to all employees?

All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer. The PF contribution of 12\% should be divided equally between the employer and employee. The employer’s contribution is 12\% of the basic salary.

Is PF deduction mandatory for all employers?

If you are an employer with an organization that employs 20 people or more, it is mandatory for you to register under the EPF scheme. If your organization employs less than 20 people, you can still opt to register under the scheme.

Who is eligible for EPF deduction?

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.

What is new salary structure?

There will be a big change in the salary structure of the employees after the implementation of the new wage code. The in-hand salary received by the employees may be reduced. The new wage code stipulates that the share of basic salary in the total salary of employees should not be less than 50 per cent.

Is it mandatory to deduct PF from salary more than 25000?

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.

Is PF applicable for salary more than 15000?

Yes, the member can contribute beyond the wage ceiling limit of Rs. 15,000. The member can also contribute on higher wages i.e., greater than Rs. 15,000 but only up to a maximum limit of 100\% of the PF wages, provided they get permission from the APFC/RPFC as per the provisions of para-26(6) of the scheme.

Why employer contribution is less in PF?

The money contributed by an employer goes towards different schemes. Of the basic salary, about 3.67\% goes towards EPF or for investments, and 8.33\% goes towards Employee Pension Scheme (EPS). If your basic salary is ₹30,000, the employer’s contribution for EPS will be ₹1,250 a month.

Is it mandatory to deduct PF from salary more than 20000?

15000/-. The P.F deduction is must. If it exceed the limit then the employee can decide whether to deduct from Salary or not.

How the new wage code will affect your salary?

The new wage code will provide a number of provisions that will affect salaried classes, mills and factory workers. From employees’ salaries to their holidays and working hours, a lot will change. The salary structure of employees will also be changed under the new wage code. The take-home salary could be reduced.

Will new wage code be implemented?

The labour ministry had envisaged implementing the four codes on industrial relations, wages, social security and occupational health safety & working conditions from April 1, 2021. These four labour codes will rationalise 44 central labour laws. Under the new wages code, allowances are capped at 50 per cent.

Is it mandatory to deduct PF from salary less than 15000 notification?

EPF deduction is mandatory for employees who draw a salary less than Rs 15,000, but others can opt-out of this scheme through a declaration made in Form 11 of EPFO.

Will reduction in EPF contribution from 12\% to 10\% increase take-home pay?

However, the plus point is that this reduction in the employee’s contribution from 12\% to 10\% may increase the take home pay or the cash-in-hand of the employee. Puneet Gupta, Director, EY India says, “For all employees covered under the EPF Scheme, the rate of employer’s and employee’s contribution is 12\% of monthly basic pay.

How will the new EPF rules affect your in-hand salary?

2 min read . Updated: 20 May 2020, 12:37 PM IST Nikhil Agarwal NEW DELHI : With employees’ provident fund (EPF) rules being changed for three months from May, your in-hand salary will increase but without a change in your total CTC (cost to company).

When will the cut in EPF contribution be applicable for 2020?

The cut in EPF contribution will be applicable for the months of May, June and July 2020. In her press conference last week, Nirmala Sitharaman announced a reduction in statutory EPF contribution of private sector employers and employees from the earlier mandated 12\% to 10\% for the next 3 months, in an attempt to provide relief against coronavirus.

What are the new EPF new rules for small businesses?

According to the EPF new rules, this limit is now going to be halved. This means that any Firm which has a minimum of 10 employees has to be registered with the Employees’ Provident Fund and Miscellaneous Provisions Act. Currently, the firms that come under the Act are those which has 20 or more employees.