Hi members,
What is the amount of EPF deduction from salary if someone's earning 50,000 of Basic + DA? My doubt is: what is the minimum or default liability as per the EPF scheme of deduction and employer's share?
Thanks
From India, Delhi
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4What is the amount of EPF deduction from salary if someone's earning 50,000 of Basic + DA? My doubt is: what is the minimum or default liability as per the EPF scheme of deduction and employer's share?
Thanks
From India, Delhi
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Dear Member,
Employees drawing less than Rs 15,000 per month have to mandatorily become members of the EPF. As per the rules, in EPF, an employee whose 'pay' is more than Rs 15,000 a month at the time of joining is not eligible and is called a non-eligible employee. However, with consent from both sides and permission from EPFO, such employees can also become members with a limited salary of Rs. 15,000.
From India, Lucknow
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Employees drawing less than Rs 15,000 per month have to mandatorily become members of the EPF. As per the rules, in EPF, an employee whose 'pay' is more than Rs 15,000 a month at the time of joining is not eligible and is called a non-eligible employee. However, with consent from both sides and permission from EPFO, such employees can also become members with a limited salary of Rs. 15,000.
From India, Lucknow
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Hi, thanks for the reply. I forgot to add that he is already a member of EPF.
From India, Delhi
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From India, Delhi
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There are a few options depending on the conditions. If it is fresh employment or the employee is otherwise excluded as per EPFO Rule, then in the present situation, the employee is an excluded employee. In that case, as per the policy of the organization, the employer may voluntarily deposit PF contributions up to ₹15,000 or on the entire Basic & DA, which in this case is ₹50,000 per month.
If the employee joining as an experienced candidate was earlier a member of EPFO and has not settled his PF account (the employee is a covered employee), then it is necessary to deposit PF contributions of at least ₹15,000 per month or voluntarily up to ₹50,000 per month.
It will vary on a case-to-case basis.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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If the employee joining as an experienced candidate was earlier a member of EPFO and has not settled his PF account (the employee is a covered employee), then it is necessary to deposit PF contributions of at least ₹15,000 per month or voluntarily up to ₹50,000 per month.
It will vary on a case-to-case basis.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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Thank you, Mr Bandyopadhyay. Can you further explain how to increase only the employee’s contribution based on actual salary? Because in ECR, there’s only one column for EPF wages.
From India, Delhi
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From India, Delhi
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Any extra percentage of Basic and DA of any employee may be added to the employee's contribution voluntarily. This practice is being followed by organizations, and there is no issue from EPFO.
This is known as VPF from the employee's side, but there is no extra contribution from the employer's side.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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This is known as VPF from the employee's side, but there is no extra contribution from the employer's side.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions
From India, New Delhi
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Thanks. One last thing. Will this lead to additional EPF admin charges?
From India, Delhi
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From India, Delhi
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No. The admin charge is based on a fixed figure that does not change. If the employer also contributes, the admin charge will increase. There are organizations where both the employer and the employee contribute to the entire amount of Basic & DA with no cap. In those cases, the admin charge is higher.
S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
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S K Bandyopadhyay (WB, Howrah)
CEO-USD HR Solutions
From India, New Delhi
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