Hello Everyone, Under the new wage code which will be applicable from April 2021, is the PF rule the same as the earlier one. Can we still have a capping of 15000 basic salaries with 12% PF deduction or is the rule changed as per the new wage code? Please guide me on this.
From India, Delhi
1From India, Delhi
@Hr
PF rules are still same, and maintain 15000 capping,
However the department would keep an eye on records of the employees, who draw gross wages below 15000/- that the diff of gross wages and EPF wages paid is segregated on genuine facts or not. if found incorrect then they would seek contribution on that portion of payment
new wages code is not just for PF, its gross effect would be on annual income tax (TDS), where most of the allowances may get taxable, and terminal benefits would be higher for the employee side, viz gratuity, EL encashment etc
PF rules are still same, and maintain 15000 capping,
However the department would keep an eye on records of the employees, who draw gross wages below 15000/- that the diff of gross wages and EPF wages paid is segregated on genuine facts or not. if found incorrect then they would seek contribution on that portion of payment
new wages code is not just for PF, its gross effect would be on annual income tax (TDS), where most of the allowances may get taxable, and terminal benefits would be higher for the employee side, viz gratuity, EL encashment etc
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