What is the new rule for PF deduction?

Any company with 20 or more employees is enabled with the option to deduct EPF. For EPF, an employee contributes 12 per cent of the basic salary while the employer contributes 8.33 per cent towards Employees’ Pension Scheme and 3.67 per cent to employees’ EPF.

Can employer contribute less than 12 for PF?

Employer’s Contribution towards EPF The minimum amount of contribution to be made by the employer is set at a rate of 12% of Rs. 15,000 (although they can voluntarily contribute more). This amount equals Rs. 1,800 per month.

What is the current employer PF contribution rate?

The contributions payable by the employer and the employee under the scheme are 12% of PF wages. From the employer’s share of contribution, 8.33% is contributed towards the Employees’ Pension Scheme and the remaining 3.67% is contributed to the EPF Scheme.

What is PF cutoff percentage?

– If you are a man, you must contribute 10% or 12% of your basic salary. – In case you are a new woman employee, it is 8% of your basic salary for the first 3 years. Thereafter, it becomes 10% or 12% of your basic salary. – Your employer has to contribute an amount equal to 10% or 12% of your basic salary towards EPF.

Can PF be more than 12 percent?

Employees usually contribute 12% of their basic salary while the employer makes a contribution of 13.61% towards the EPF. EPF is an retirement investment plan opted by a number of employees as this has number of benefits.

Is PF deduction is mandatory?

If you are a salaried employee with a Basic + Dearness Allowance less than Rs. 15,000 per month, it is mandatory for you to be opened an EPF account by your employer.

What is the minimum PF contribution by employer?

According to regulations, employees and employer contribute 12% of the basic monthly salary to the EPF. Women can choose to contribute only 8% of the basic monthly salary for the first three years. For sick companies or establishments with less than 20 employees, the rate can be 10%.

Can we contribute more than 12% in EPF?

As per the Employees’ Provident Fund Organisation (EPFO) norms, an employee is bound to contribute 12 per cent of its basic salary into one’s PF or EPF account. However, for this VPF contribution made by the employee, the employer will not contribute any additional amount.

Can I invest more than 12% in EPF?

Provident Fund (PF) contribution is mandatory for all Employees’ Provident Fund (EPF) and PF account holders. The EPFO allows an EPF or PF account holder to opt for the VPF and invest beyond 12 per cent of its basic salary in one’s provident fund account.

What happens when you are asked to reduce your pay?

A short-time situation arises where, due to a reduction in the amount of work to be done, your pay or hours are less than half the normal weekly amount. In both cases these must be temporary situations and your employer must notify you before they start.

How does redundancy pay work if you have been asked to reduce hours?

If you fully accepted the reduced working hours as your normal week and never asked to return to full-time work, then your redundancy payment will be based on your gross pay for the reduced working hours.

Can a company reduce your pay without your agreement?

Where this is not the case, your employer cannot reduce it without your agreement, as this would change the terms of your contract of employment. Again, you may agree to reduced wages, if, for example, the alternative may be reduced hours or redundancy in the current economic situation.

What should I do if my employer reduces my hours?

Your employer should not reduce your hours and/or pay without following the correct procedure. If you are forced to resign because your employer has reduced your hours or your pay, then you may have grounds to bring a claim of constructive dismissal.

Can a company reduce the salary of an employee?

If employers want to reduce pay for another reason – such as the employee underperforming, not meeting targets or earning more than the organisation can afford – they need to consult with employees.

What happens when you get a salary reduction?

In a salary reduction, an employer lowers the amount of pay that you receive as payment for the job you perform. Seems unfair? It may feel that way. However, feelings aside, sometimes your employer needs to reduce your paycheck for a variety of reasons.

What happens if you cut an employee’s salary?

If an employer is considering cutting a senior employee’s salary, the financial and other implications can be significant. A senior employee could argue they are no longer bound by the terms of their contract because the employer has breached the contract by cutting their pay.