Hello, I have a query about what happens to the quantum of employer’s contribution when the employee’s salary exceeds 15,000? And please quote references also.
From India, Noida
From India, Noida
Simple, If any employee crosses 15000/- basic salary then 15000*12%=1800 15000*8.33%=1250 15000*3.67%=550.
From India, Jabalpur
13From India, Jabalpur
Thanks Meera. Can you post any reference? As I’m seeing in para 29 EPF scheme. It says minimum mandatory contribution by employer is 10% or 12% of basic + DA + RA. I’m a little confused.
From India, Noida
From India, Noida
Even if the wage exceeds rs.15000/-pm, the employer's contribution can be limited to Rs.15000/- while the employee has the option to contribute on higher wage, with the approval of the PF authority.
B.Saikumar
HR & Labour Relations Adviser
From India, Mumbai
B.Saikumar
HR & Labour Relations Adviser
From India, Mumbai
Dear Manish, In your case the Management is willing to pay the contributions for the higher amount what the employee received, they have to pay the full contribution. If the Management is not willing to pay higher contribution, they will pay 13% towards employer contribution for Rs.15,000/- only.
P. Karunakaran
From India, Chennai
P. Karunakaran
From India, Chennai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.