In Delhi, Minimum wage for unskilled is Rs. 14842/- So to get epf exemption, is it better to give 15100/- if he/she has no existing epf account..? I request experts to put some light on it.
From India, Kotdwara
From India, Kotdwara
Fixation of salary is in the hands of employer. Only thing is that it should not be less than statutory minimum wages. Whatever you pay higher than minimum wages is permitted and nobody can question it. After all, EPF Organisation has no authority to question you if you are paying less than minimum wages; for that there is labour department!
If you want to exclude an employee from EPF, you can pay a salary higher than Rs 15000 and exclude him. However, the EPFO can revise this wage ceiling any time and bring it to 20 or 25 thousand! At that time, what will you do? Will you be able to increase the wages beyond that? That means, it should only be treated as temporary escape and not a permanent solution from EPF coverage.
From India, Kannur
4248If you want to exclude an employee from EPF, you can pay a salary higher than Rs 15000 and exclude him. However, the EPFO can revise this wage ceiling any time and bring it to 20 or 25 thousand! At that time, what will you do? Will you be able to increase the wages beyond that? That means, it should only be treated as temporary escape and not a permanent solution from EPF coverage.
From India, Kannur
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Minimum Wage of UP & UK.pdf