Hi, If basic 15001, does it come under pf coverage? Also, can employer PF contribution be reduced voluntarily if it is contributing above 1800?
From India, Mumbai
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5From India, Mumbai
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If the basic salary of an employee is more than 15000 per month, he will be called an exempted employee, and his contribution may be restricted to 1800 per month. In case his basic salary falls below 15000, you need to remit EPF contribution at 12%.
In some big corporate companies, EPF contribution will not be restricted to 15K, but they contribute based on the actual basic salary, which may exceed 15K throughout their service. The management also shares an equal amount of contribution, not only boosting morale within the company but also establishing a good reputation in the industry.
From India, New Delhi
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In some big corporate companies, EPF contribution will not be restricted to 15K, but they contribute based on the actual basic salary, which may exceed 15K throughout their service. The management also shares an equal amount of contribution, not only boosting morale within the company but also establishing a good reputation in the industry.
From India, New Delhi
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It is always a bad practice to give partial information as it may result in you getting a wrong answer.
An employee can be exempt from PF only if he does not have an existing PF account (current or from a previous employer) and his starting salary when he joins the organization is above ₹ 15,000. Both conditions must be fulfilled simultaneously. Therefore, if you join an organization with a lower salary but it increases to ₹15,000 later, you will need to continue with PF. Similarly, if the new joiner has an existing PF account, then PF continues.
In the case of voluntary contribution, either party can reduce their contribution at any time. It is not necessary that the other party should also stop or reduce simultaneously.
From India, Mumbai
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An employee can be exempt from PF only if he does not have an existing PF account (current or from a previous employer) and his starting salary when he joins the organization is above ₹ 15,000. Both conditions must be fulfilled simultaneously. Therefore, if you join an organization with a lower salary but it increases to ₹15,000 later, you will need to continue with PF. Similarly, if the new joiner has an existing PF account, then PF continues.
In the case of voluntary contribution, either party can reduce their contribution at any time. It is not necessary that the other party should also stop or reduce simultaneously.
From India, Mumbai
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If an employee is a fresher, he can opt out of the EPF if his EPF salary is more than ₹15,000. It is not compulsory to be enrolled under the EPF Scheme if he is a fresher and has an EPF salary exceeding ₹15,000.
If he is already a member of the EPF scheme, he has to be compulsorily enrolled in the new company as well, even if his EPF salary is more than ₹15,000. You can limit your EPF salary to ₹15,000 as well, even if you are earning more than that.
From India, Kochi
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If he is already a member of the EPF scheme, he has to be compulsorily enrolled in the new company as well, even if his EPF salary is more than ₹15,000. You can limit your EPF salary to ₹15,000 as well, even if you are earning more than that.
From India, Kochi
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