Hi Bobby,
Below described are the current rules.
1). Minimum threshold has been raised to 15000 from 6500. Members limiting monthly contributions
on salary to Rs 6,500 earlier will now have to contribute on at least salary of Rs 15,000.
2). It becomes mandatory for all employees with salary up to 15000 to maintain pf accounts.
3). 12% of Basic goes as employee contribution to employee provident fund account.
4). Employer Contribution(12%)
8.33% to employee pension scheme
Balance(3.67%) goes to the employee provident fund
5). Apart from the PF contribution, the Employer has to bear Admin charges which includes
a) 1.10% of basic (Administration Charges)
b). 0.5% of basic (Employee Developed Linked Insurance Charges)
c). 1.01% of basic (Employee Developed Linked Insurance Charges)
6). The new pension scheme is w.e.f September 1, 2014.
7). Minimum contribution for employees with salary up to Rs. 15000/- has increased for both
employee and employer. (i.e. 12% of 15000 = 1800).
8 ) Employees who became members in PF post 1st September 2014 cannot become a member in the
pension scheme if his pf wages is higher than RS. 15000/-(12% of employer contribution goes into
PF alone, no pension scheme). For employees who are having PF wages less than Rs. 15000/- the
contribution percentages remain the same(8.33% to EPS & 3.61% to EPF). Such employees' whole
deposit would be absorbed into the PF itself.
Yes, it has been implemented in Lenvica HRMS.
Install the latest update,
– In the salary group pick the salary head 'provident fund' and change the formula. Make 6500 into 15000
– Add the required salary heads in Salary > Provident Fund > PF Wages
Contact sales@lenvica.in for the latest update.
Regards,
Rijo
