Hi! We have some employees in our company whose salary is above $15,000, and their PF and ESI are not being deducted. Kindly provide me PF & ESI ruling (Government Copy) where it is mentioned that it's optional to deduct PF & ESI of those workers whose salary is above $15,000. Regards
From India, Patna
6From India, Patna
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Dear Wasim Ahsan,
I shall reproduce the first paragraph of the ESI scheme as under:
"Coverage under the ESI Act, 1948
APPLICABILITY
Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, and newspaper establishments employing 20 or more persons.
Further under Section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20 or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.
The existing wage limit for coverage under the Act is Rs. 15,000/- per month (w.e.f. 01/05/2010)."
Regarding EPF, kindly see the attached file on wage ceiling.
Abbas.P.S
From India, Bangalore
I shall reproduce the first paragraph of the ESI scheme as under:
"Coverage under the ESI Act, 1948
APPLICABILITY
Under Section 2(12), the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, and newspaper establishments employing 20 or more persons.
Further under Section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20 or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.
The existing wage limit for coverage under the Act is Rs. 15,000/- per month (w.e.f. 01/05/2010)."
Regarding EPF, kindly see the attached file on wage ceiling.
Abbas.P.S
From India, Bangalore
Department is asking to show where it is written that we may or may not deduct PF if salary is more than 15000. Wasim Ahsan 9470040025
From India, Patna
From India, Patna
CiteHR.AI
(Fact Check Failed/Partial)-The information provided is incorrect. As per the latest PF rules, PF deduction is mandatory for employees with salaries up to Rs. 15,000. Therefore, PF deduction is not optional even if the salary exceeds Rs. 15,000.
Thank you, but please provide the ruling where it's written that it's optional to deduct or not to deduct PF for wages above Rs. 15,000/-. Actually, my client is saying it's mandatory to deduct PF even if the wage of the worker is above Rs. 15,000/-. Since I have not deducted PF of workers earning more than Rs. 15,000/-, the client has asked to produce the government ruling for the same. If I fail to produce it, I will be in great trouble for the time being.
Regards,
Wasim Ahsan
+91 9470040025
From India, Patna
Regards,
Wasim Ahsan
+91 9470040025
From India, Patna
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply is incorrect. According to the EPF Act, it is mandatory for employees earning above Rs. 15,000 to contribute to PF unless they are already members. Kindly refer to Section 2(b) of the EPF Act.
Dear Wasim,
I hope, the following detail will suffice for you and it will provide you an exhaustive idea about your concern.
1. (i) It is specifically written in "Employees� Provident Funds (Amendment) Scheme, 2014".
(ii) The Amendment came into force w.e.f. 1st September, 2014
2. In the Employees� Provident Funds Scheme, 1952
(a) Paragraph 2, in clause (f), in sub-clause (ii), for the words �six thousand and five hundred rupees� the words �fifteen thousand rupees� shall be substituted.
(b) Paragraph 26, sub-paragraph (6), for the words �six thousand and five hundred rupees� the words �fifteen thousand rupees� shall be substituted.
(c) Paragraph 26A, sub-paragraph (2), for the words �six thousand and five hundred rupees� the words �fifteen thousand rupees� shall be substituted.
Excluded employee: an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds [six thousand and five hundred rupees]
per month;
Note: Gazette Notification was published on 22nd August, 2014
Regards,
J.Basak
From India, Calcutta
I hope, the following detail will suffice for you and it will provide you an exhaustive idea about your concern.
1. (i) It is specifically written in "Employees� Provident Funds (Amendment) Scheme, 2014".
(ii) The Amendment came into force w.e.f. 1st September, 2014
2. In the Employees� Provident Funds Scheme, 1952
(a) Paragraph 2, in clause (f), in sub-clause (ii), for the words �six thousand and five hundred rupees� the words �fifteen thousand rupees� shall be substituted.
(b) Paragraph 26, sub-paragraph (6), for the words �six thousand and five hundred rupees� the words �fifteen thousand rupees� shall be substituted.
(c) Paragraph 26A, sub-paragraph (2), for the words �six thousand and five hundred rupees� the words �fifteen thousand rupees� shall be substituted.
Excluded employee: an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds [six thousand and five hundred rupees]
per month;
Note: Gazette Notification was published on 22nd August, 2014
Regards,
J.Basak
From India, Calcutta
CiteHR.AI
(Fact Checked)-The user reply is correct and provides accurate information regarding the amendment in the Employees' Provident Funds Scheme, 1952, where the salary threshold for excluded employees was increased to Rs. 15,000. Well done! (1 Acknowledge point)
Sir,
I superannuated on 30.06.2013 from a company under EPF Coverage. I had taken permission to contribute on total wages to EPF 1995 under para 26(6) from EPF authority of jurisdiction during March 2010, the date I joined a new company after resigning from the old company where EPF contribution was restricted to the ceiling of Rs 6500/-. In view of the Employees' Pension (Amendment) Scheme 2014 and the option executed by my employer and me, permission granted by the APFC of jurisdiction and EPS contribution remitted regularly on a monthly basis w.e.f. March 2010 to 30.06.2013 by the employer, what will be the formula for calculating my EPS pension? Should the pensionable salary be the actual salary on which EPS contribution was deposited during the 12 months preceding the date of superannuation or the statutory ceiling of Rs 6500/-?
Sincerely,
SLPAL
Retired EPF subscriber, who served and contributed for 31 years under the EPF Scheme.
From India, Shimla
I superannuated on 30.06.2013 from a company under EPF Coverage. I had taken permission to contribute on total wages to EPF 1995 under para 26(6) from EPF authority of jurisdiction during March 2010, the date I joined a new company after resigning from the old company where EPF contribution was restricted to the ceiling of Rs 6500/-. In view of the Employees' Pension (Amendment) Scheme 2014 and the option executed by my employer and me, permission granted by the APFC of jurisdiction and EPS contribution remitted regularly on a monthly basis w.e.f. March 2010 to 30.06.2013 by the employer, what will be the formula for calculating my EPS pension? Should the pensionable salary be the actual salary on which EPS contribution was deposited during the 12 months preceding the date of superannuation or the statutory ceiling of Rs 6500/-?
Sincerely,
SLPAL
Retired EPF subscriber, who served and contributed for 31 years under the EPF Scheme.
From India, Shimla
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply contains personal details and is not directly related to the original post. It does not address the query about PF and ESI deductions for employees with salaries above 15000. Therefore, a correction is needed.
Dear Sipal, If you contributed to EPS-95 on actual salary, your pensionable salary will be average of last twelve months' actual salary. Abbas.P.S
From India, Bangalore
From India, Bangalore
CiteHR.AI
(Fact Check Failed/Partial)-[The user reply does not address the original query about PF & ESI deductions for employees with a salary above 15000. There is no mention of EPS-95 or pensionable salary in relation to the specific question asked.]
Hi,
You have the right to divide their salary as per the laws of PF. It is also for your consideration that ESIC limit increased to Rs. 25,000/-
The Employees' State Insurance Corporation (ESIC) board has decided to increase the income ceiling limit for employees from the existing Rs. 15,000 a month for coverage under the ESIC scheme to Rs. 25,000 a month. This decision will help 32 lakh employees to become members of the ESIC scheme. At present, there are 3 crore employees covered under the ESIC scheme. To a question, he said the board of trustees of the Provident Fund has also decided to increase the interest rate of Provident Fund contributions from the existing 8.5 percent to 8.75 percent.
From India, Thrissur
You have the right to divide their salary as per the laws of PF. It is also for your consideration that ESIC limit increased to Rs. 25,000/-
The Employees' State Insurance Corporation (ESIC) board has decided to increase the income ceiling limit for employees from the existing Rs. 15,000 a month for coverage under the ESIC scheme to Rs. 25,000 a month. This decision will help 32 lakh employees to become members of the ESIC scheme. At present, there are 3 crore employees covered under the ESIC scheme. To a question, he said the board of trustees of the Provident Fund has also decided to increase the interest rate of Provident Fund contributions from the existing 8.5 percent to 8.75 percent.
From India, Thrissur
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply contains inaccuracies. It is mandatory to deduct PF for employees with a salary above Rs. 15,000. The ESIC limit increase is correct.
Has there been any ofiicial announcement for the limit be increased to 25000 . we have no notifiaction as yet.
From India, Dehra Dun
From India, Dehra Dun
CiteHR.AI
(Fact Check Failed/Partial)-The user reply is incorrect. As of now, there has been no official announcement increasing the limit to Rs. 25000 for PF deductions. The current limit for mandatory PF deduction is Rs. 15000.Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls
CiteHR.AI
(Fact Checked)-The information provided in the user reply is accurate regarding the ESI Act's wage limit being Rs. 15,000 per month. Therefore, no corrections are needed. Thank you for your detailed response! (1 Acknowledge point)