Dear Members,
Please share your views on EPF sealing based on basic wages. This pertains to situations where an employee's basic salary exceeds 6500/-, and a ceiling of 6500 has been set for EPF contributions. If an employee works for only 15 days and their basic salary for those days is also above 6500/-, how should the EPF be calculated?
For example, let's consider employee A, whose monthly basic salary is 60000/-. If he works for 15 days, his total basic for those days amounts to 30000/-. In this scenario, we need to determine the EPF contribution. Your insights on this matter would be appreciated.
Thank you.
From India, Shimla
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Please share your views on EPF sealing based on basic wages. This pertains to situations where an employee's basic salary exceeds 6500/-, and a ceiling of 6500 has been set for EPF contributions. If an employee works for only 15 days and their basic salary for those days is also above 6500/-, how should the EPF be calculated?
For example, let's consider employee A, whose monthly basic salary is 60000/-. If he works for 15 days, his total basic for those days amounts to 30000/-. In this scenario, we need to determine the EPF contribution. Your insights on this matter would be appreciated.
Thank you.
From India, Shimla
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Hope there is no difference in it. As you are calculating the PF on the ceiling of basic Rs. 6500 for all the employees.
When his salary is Rs. 60,000.00 and you pay Rs. 6500 as PF, then on Basic of Rs. 30,000, need to be paid on the ceiling of Rs. 6500 only. It will be the same as you paying on the ceiling of basic Rs. 6500/-. You can also check with the local PF office persons for better clarification.
From United Kingdom, London
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198When his salary is Rs. 60,000.00 and you pay Rs. 6500 as PF, then on Basic of Rs. 30,000, need to be paid on the ceiling of Rs. 6500 only. It will be the same as you paying on the ceiling of basic Rs. 6500/-. You can also check with the local PF office persons for better clarification.
From United Kingdom, London
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Dear Arun,
As rightly said, there will be no difference as you are calculating and deducting PF on Basic Salary, which is more than the ceiling of Rs. 6500/-. The deduction of Rs. 780/- (12% of 6500) will continue unless the basic salary falls below the amount of Rs. 6500/-.
Thank you.
From India, Andheri
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As rightly said, there will be no difference as you are calculating and deducting PF on Basic Salary, which is more than the ceiling of Rs. 6500/-. The deduction of Rs. 780/- (12% of 6500) will continue unless the basic salary falls below the amount of Rs. 6500/-.
Thank you.
From India, Andheri
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If an employee with a salary of Rs. 10,000/- per month works only for 15 days in a month, their deemed basic ceiling is Rs. 3,250/-. Therefore, I believe the employer's contribution is limited to 12% of Rs. 3,250/-, which amounts to Rs. 390/- only.
Varghese Mathew
From India, Thiruvananthapuram
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Varghese Mathew
From India, Thiruvananthapuram
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Hello,
The EPF ceiling of 6500 is for the full month, and for 15 days, EPF basic would be calculated according to the calendar days of the month on 6500, and EPF will be deducted and deposited accordingly. For online filing data for challan submission, you have to show NCP (Non-contributing period). Hence, when an employee has worked for 15 days only and not for the full month, then you have to show his contribution period of 15 days. This also affects the Pension scheme. Please see the online challan preparation of EPF.
If you agree with the viewpoint for EPF deduction on 6500 for 15 days of work, then you will be showing his work in your records for 15 days and in the EPF records for the full month. Would this be correct?
Thanks,
V K Gupta
From India, Panipat
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The EPF ceiling of 6500 is for the full month, and for 15 days, EPF basic would be calculated according to the calendar days of the month on 6500, and EPF will be deducted and deposited accordingly. For online filing data for challan submission, you have to show NCP (Non-contributing period). Hence, when an employee has worked for 15 days only and not for the full month, then you have to show his contribution period of 15 days. This also affects the Pension scheme. Please see the online challan preparation of EPF.
If you agree with the viewpoint for EPF deduction on 6500 for 15 days of work, then you will be showing his work in your records for 15 days and in the EPF records for the full month. Would this be correct?
Thanks,
V K Gupta
From India, Panipat
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Dear friends,
Yes, Mr. Varghese Mathew is right in this regard. If two employees at the same salary of Rs. 60,000 work for 30 days and 15 days respectively, how will their PF contributions become the same? The ceiling on the salary of 6500 means it is for the total of one month. If attendance gets reduced, the connected benefits/contributions will also be adjusted accordingly.
Abbas.P.S
From India, Bangalore
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Yes, Mr. Varghese Mathew is right in this regard. If two employees at the same salary of Rs. 60,000 work for 30 days and 15 days respectively, how will their PF contributions become the same? The ceiling on the salary of 6500 means it is for the total of one month. If attendance gets reduced, the connected benefits/contributions will also be adjusted accordingly.
Abbas.P.S
From India, Bangalore
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When I first saw the heading, I was a bit perplexed. Sealing or Ceiling... both have different meanings. Phonetically correct but meaning-wise, it is not! Better to check out the appropriate spelling before posting!
From India, Bengaluru
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From India, Bengaluru
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Dear Arun,
The Executive category of persons which you have mentioned in your query normally termed as 'Excluded Employee', as defined under para 2(f) of the Employees' Provident Fund Scheme. An employee who, having been a member, withdrew the full amount from his EPF accumulation on retirement after the age of 55 or for migration from India whose pay exceeds Rs. 6500/- at the time of appointment.
AN EMPLOYEE ONCE COVERED WILL CONTINUE TO BE COVERED- if the pay of an employee, who is already a member of the scheme, exceeds the limit of Rs. 6500/- he will continue to be covered under the Scheme.(Para 26 A (2)) and 6 A of EPS
For example:- The pay of 'X’ at the time of joining the employment on 1/4/2012 was Rs. 6000/-p.m.. His pay was increased to Rs.7000/- with effect from 1/4/2013. Though his pay exceeded the ceiling of Rs 6500/-, he will not be treated as an ‘excluded employee’ as provided under Para 2 (f) of the Scheme. The payment of contribution in respect of him has to be continued at least on Rs. 6500/-.
As regard your query that if an employee's basic salary/ wages is more then 6500/- and have made sealing on 6500 for epf and he worked for 15 days then what will be the procedure to calculate epf. if his 15 days basic is also more then 6500/- is concerned, the deduction of the PF contribution is limited to the amount of salary earned by an employee (subject to a limit of Rs 6500/- p.m) irrespective of no. of days of work put in by him. A limit of Rs 6500/- p.m also holds good for the for Exe. employee whose basic salary is 60000/- per month and he has worked for 15 days then his 15 days total basic is 30000/- as inquired by you.
BS Kalsi
Member since 2011
From India, Mumbai
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The Executive category of persons which you have mentioned in your query normally termed as 'Excluded Employee', as defined under para 2(f) of the Employees' Provident Fund Scheme. An employee who, having been a member, withdrew the full amount from his EPF accumulation on retirement after the age of 55 or for migration from India whose pay exceeds Rs. 6500/- at the time of appointment.
AN EMPLOYEE ONCE COVERED WILL CONTINUE TO BE COVERED- if the pay of an employee, who is already a member of the scheme, exceeds the limit of Rs. 6500/- he will continue to be covered under the Scheme.(Para 26 A (2)) and 6 A of EPS
For example:- The pay of 'X’ at the time of joining the employment on 1/4/2012 was Rs. 6000/-p.m.. His pay was increased to Rs.7000/- with effect from 1/4/2013. Though his pay exceeded the ceiling of Rs 6500/-, he will not be treated as an ‘excluded employee’ as provided under Para 2 (f) of the Scheme. The payment of contribution in respect of him has to be continued at least on Rs. 6500/-.
As regard your query that if an employee's basic salary/ wages is more then 6500/- and have made sealing on 6500 for epf and he worked for 15 days then what will be the procedure to calculate epf. if his 15 days basic is also more then 6500/- is concerned, the deduction of the PF contribution is limited to the amount of salary earned by an employee (subject to a limit of Rs 6500/- p.m) irrespective of no. of days of work put in by him. A limit of Rs 6500/- p.m also holds good for the for Exe. employee whose basic salary is 60000/- per month and he has worked for 15 days then his 15 days total basic is 30000/- as inquired by you.
BS Kalsi
Member since 2011
From India, Mumbai
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Please clarify below.. Employee basic is Rs.7000/- so employer contribution will be 780 and employee contribution will be 12% of 7000. Is this correct.
From India, Hyderabad
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From India, Hyderabad
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Marella,
Employees can contribute 12% of Rs 6,500/- or their actual salary, or more than 12% of their salary. However, the employer's contribution is legally limited to 13.61% of Rs 6,500/-. The employer can choose to contribute more than Rs 6,500/-. Nevertheless, the employee cannot contribute more than 13.61% in any case.
Varghese Mathew
From India, Thiruvananthapuram
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Employees can contribute 12% of Rs 6,500/- or their actual salary, or more than 12% of their salary. However, the employer's contribution is legally limited to 13.61% of Rs 6,500/-. The employer can choose to contribute more than Rs 6,500/-. Nevertheless, the employee cannot contribute more than 13.61% in any case.
Varghese Mathew
From India, Thiruvananthapuram
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SALARY SHEET CALCULATION.xls