If an employee joins with a salary below Rs.6,500/- and then when the salary grows beyond that ceiling limit in subsequent years, what is employer’s liability with respect to EPF?
1) Is employer obligated to pay EPF on entire salary or only up to the ceiling limit?
2) Can employer stop contribution to EPF since the salary is beyond ceiling limit?
Regards,
Krishna.
From India, Kannur
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11) Is employer obligated to pay EPF on entire salary or only up to the ceiling limit?
2) Can employer stop contribution to EPF since the salary is beyond ceiling limit?
Regards,
Krishna.
From India, Kannur
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In that case continuation of PF is mandatory but you can you shall restrict to the ceiling amount of 6500/- If employee & employer wishes so you contribution shall be on full basic
From India, Bangalore
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From India, Bangalore
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Even though the salary goes beyond the ceiling limit, the employee can continue to contribute either on Rs. 6500/- or on the entire salary. However, the employer is not obliged to contribute on the entire salary but can restrict their contribution to Rs. 6500/- only. The employer cannot stop their contribution because of the employee's salary exceeding the ceiling limit.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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I received information that if an employer plans to contribute more than the basic limit, permission needs to be sought from the PF officer. Is this true? What happens if an excess amount is paid (as well as deducted from the employee)?
Our institution has been providing PF on the entire salary (12% of the entire salary) without knowing the finer details. We have not obtained any special permission to do so, but thus far, the EPF office has not prevented us from paying a higher PF.
Additionally, if we now wish to reduce the PF contribution and limit it to the ceiling amount, can we do so simply by notifying our employees, or would we require permission for that as well? I would appreciate it if you could share your experienced views on this.
From India, Kannur
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Our institution has been providing PF on the entire salary (12% of the entire salary) without knowing the finer details. We have not obtained any special permission to do so, but thus far, the EPF office has not prevented us from paying a higher PF.
Additionally, if we now wish to reduce the PF contribution and limit it to the ceiling amount, can we do so simply by notifying our employees, or would we require permission for that as well? I would appreciate it if you could share your experienced views on this.
From India, Kannur
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Dear friends, the pf ceiling limit is taken from basic salary or eps wages.please help me regarding this issue as early as possible.
From India, Hyderabad
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From India, Hyderabad
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Mr. Ayya Rajesh,
The wage limit for P.F. is to be calculated on the basis of basic wages (basic pay and other allowances except HRA) + DA + retaining allowance except overtime, commission, bonus, or any other similar allowance.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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The wage limit for P.F. is to be calculated on the basis of basic wages (basic pay and other allowances except HRA) + DA + retaining allowance except overtime, commission, bonus, or any other similar allowance.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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