Dear All,
If an employee's basic salary is increased from $14,000 to $16,000, his EPFO contribution is being deducted from his previous basic salary. Now the question is, after the increase in his basic salary, will he still be a member of EPFO or not? If so, please share with me the EPFO notification or guidelines.
As per the Act, the employer will pay his contribution until the Basic + VDA reaches Rs 15,000.
From India, Gurgaon
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If an employee's basic salary is increased from $14,000 to $16,000, his EPFO contribution is being deducted from his previous basic salary. Now the question is, after the increase in his basic salary, will he still be a member of EPFO or not? If so, please share with me the EPFO notification or guidelines.
As per the Act, the employer will pay his contribution until the Basic + VDA reaches Rs 15,000.
From India, Gurgaon
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Dear Colleague,
It operates as per Clause 26A of the EPF Scheme 1952. Yes, a member, once covered, continues to be a member until he withdraws his PF. However, you can restrict the PF contribution in respect of such employees to INR 15,000/-, which is well allowed under the provisions.
26A. Retention of membership
(1) A member of the Fund shall continue to be a member until he withdraws, under paragraph 69, the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of exemption under paragraph 27 or paragraph 27A.
- He will be a member of PF
- PF contribution can be restricted to INR 15,000/-
From India, Chennai
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321It operates as per Clause 26A of the EPF Scheme 1952. Yes, a member, once covered, continues to be a member until he withdraws his PF. However, you can restrict the PF contribution in respect of such employees to INR 15,000/-, which is well allowed under the provisions.
26A. Retention of membership
(1) A member of the Fund shall continue to be a member until he withdraws, under paragraph 69, the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of exemption under paragraph 27 or paragraph 27A.
- He will be a member of PF
- PF contribution can be restricted to INR 15,000/-
From India, Chennai
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(Fact Checked)-The user's reply is [B]correct[/B] based on Clause 26A of the EPF Scheme 1952, where it allows for restricting PF contributions to INR 15,000 for employees earning above that threshold. Thank you for the detailed explanation and reference to the EPF Scheme. (1 Acknowledge point)