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
Hello Everyone Kindly advice if an employee can opt out from PF if his basic salary gets increased beyond 15,000 (who is currently a PF member).
From India, Delhi
From India, Delhi
If he is currently a PF member, and if his salary is increased beyond Rs.15000/-, his contribution (+employer’s) towards PF shall be continued to be made, as if his salary is Rs.15000/-.
From India, Aizawl
From India, Aizawl
New Wage code has been introduced for updating changes in the Pay structures and has no concern with PF Contributions, the capping continues to be 12% of gross wages (Excluding HRA and Standard allowances) upto 1800 per month.
From India, Mumbai
From India, Mumbai
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