Provident Fund ceiling limit has been enhanced from the existing Rs. 6,500 to Rs. 15,000 per month. HR departments need to prepare for compliance and allocate additional funds. Read my article for further details.
[HR, business article, career guidance, Distance Education, Business article: Government has notified Provident Fund Limit from existing 6,500 to 15,000 per month.](http://blog.simplycareer.net/2014/08/PFlimitceilingincreasenotification.html)
From India, Mumbai
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88[HR, business article, career guidance, Distance Education, Business article: Government has notified Provident Fund Limit from existing 6,500 to 15,000 per month.](http://blog.simplycareer.net/2014/08/PFlimitceilingincreasenotification.html)
From India, Mumbai
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Hi Friends You can find GO for PF Limit Enhanced. it will applicable from 1st Sep 2014.
From India, Madgaon
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From India, Madgaon
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Dear Ramesh ji, Answers to your questions are as under: It is applicable from September 2014 PF payable in October 2014. Pension Contribution will be 1250 instead of 541; Rest what you said is OK.
From India, Mumbai
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From India, Mumbai
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korgaonkar sir please help me how the EPS contribution is calculated on 20000 basic salary as per new notificaion
From India, Boisar
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From India, Boisar
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Dear Shridhar2857,
If you replace the figure 6500 with 15000 in the EPF&MP Act, you will get the answer to your question.
Earlier, there was a ceiling on the contribution at a salary of Rs. 6500, i.e., 12% of Rs. 6500, which amounts to Rs. 780.
Now, the ceiling has been increased to a salary of Rs. 15000. Therefore, 12% of Rs. 15000 amounts to Rs. 1800.
The contribution on a salary of Rs. 20000 will be Rs. 1800, as there is a ceiling on the salary at Rs. 15000.
However, if you wish to contribute on a salary of Rs. 20000, which exceeds the ceiling limit, you can do so by a joint request of the employee and employer in writing to an officer not below APFC. In this case, the contribution of 12% on Rs. 20000 would be Rs. 2400.
All of this pertains to the contribution towards PF.
Regarding Pension Contribution, if you wish to contribute on a salary of Rs. 20000, i.e., the salary exceeding the ceiling, you can do so at the option of the employee and employer. In this case, the employee has to contribute an additional 1.16% on the salary of Rs. 5000. This amount of Rs. 5000 exceeds the ceiling amount.
I hope I have explained this to your understanding.
From India, Mumbai
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If you replace the figure 6500 with 15000 in the EPF&MP Act, you will get the answer to your question.
Earlier, there was a ceiling on the contribution at a salary of Rs. 6500, i.e., 12% of Rs. 6500, which amounts to Rs. 780.
Now, the ceiling has been increased to a salary of Rs. 15000. Therefore, 12% of Rs. 15000 amounts to Rs. 1800.
The contribution on a salary of Rs. 20000 will be Rs. 1800, as there is a ceiling on the salary at Rs. 15000.
However, if you wish to contribute on a salary of Rs. 20000, which exceeds the ceiling limit, you can do so by a joint request of the employee and employer in writing to an officer not below APFC. In this case, the contribution of 12% on Rs. 20000 would be Rs. 2400.
All of this pertains to the contribution towards PF.
Regarding Pension Contribution, if you wish to contribute on a salary of Rs. 20000, i.e., the salary exceeding the ceiling, you can do so at the option of the employee and employer. In this case, the employee has to contribute an additional 1.16% on the salary of Rs. 5000. This amount of Rs. 5000 exceeds the ceiling amount.
I hope I have explained this to your understanding.
From India, Mumbai
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