If an employee joins with a salary below Rs.6,500/- and then when the salary grows beyond that ceiling limit in subsequent years, what is employer’s liability with respect to EPF?
1) Is employer obligated to pay EPF on entire salary or only up to the ceiling limit?
2) Can employer stop contribution to EPF since the salary is beyond ceiling limit?
Regards,
Krishna.
From India, Kannur
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11) Is employer obligated to pay EPF on entire salary or only up to the ceiling limit?
2) Can employer stop contribution to EPF since the salary is beyond ceiling limit?
Regards,
Krishna.
From India, Kannur
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In that case continuation of PF is mandatory but you can you shall restrict to the ceiling amount of 6500/- If employee & employer wishes so you contribution shall be on full basic
From India, Bangalore
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From India, Bangalore
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Even though the salary goes byond the ceiling limit, the employee can continue to contribute either on Rs.6500/- or on the entire salary but the employer is not obliged to contribute on the entire salary but can restrict his contribution to RS.6500/-only but the employer cannot stop his contribution because of the salary of the employee exceeding the ceiling limit.
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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I got an information that if employer plans to contribute more than the basic limit, then permission needs to be sought from the PF officer. Is this true? What happens if excess amount is paid (as well as cut from employee)?
Our institution has been giving PF on entire salary (12% of entire salary) without knowing the finer level details. We have not got any special permission to do so, but so far EPF office has not prevented us from paying higher PF.
Also, if we now want to reduce PF and limit to the ceiling limit, can we do it just by notifying our employees or would we need permission for that too? Kindly share your experienced views on this.
From India, Kannur
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Our institution has been giving PF on entire salary (12% of entire salary) without knowing the finer level details. We have not got any special permission to do so, but so far EPF office has not prevented us from paying higher PF.
Also, if we now want to reduce PF and limit to the ceiling limit, can we do it just by notifying our employees or would we need permission for that too? Kindly share your experienced views on this.
From India, Kannur
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Dear friends, the pf ceiling limit is taken from basic salary or eps wages.please help me regarding this issue as early as possible.
From India, Hyderabad
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From India, Hyderabad
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Mr.ayya Rajesh
The wage limit for P.F is to be calculated on the basis of basic wages(basic pay and other allowances except HRA) + DA + retaining allowance eccept overtime , commission or bonus or any other similar allowance.
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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The wage limit for P.F is to be calculated on the basis of basic wages(basic pay and other allowances except HRA) + DA + retaining allowance eccept overtime , commission or bonus or any other similar allowance.
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
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Wage-ceiling-ep f-6500-15000-ci rcular-circular .pdf