Pf applicability


Jyothis (Article)     22 December 2015

Jyothis
Article 
 7 likes  1127 points

| My Other Post

1)Basic-Rs.12,000
,DA-2000

Additional allowance-8000

Is EPF applicable for an employee who draws a salary as structured above.

2)Is epf applicable for an employee joined before sep,2014 whose salary was Rs.6500 +;say Rs.8000 &less than 15000.

His salary during sep,2015 is Rs.14,500 is epf applicable for him.

avater

U S Sharma (glidor@gmail.com)     24 December 2015

U S Sharma
glidor@gmail.com 
 1739 likes  21021 points

View Profile | My Other Post

for EPF calculation 

Basic + DA is eligible 

ceiling of 15000 ( earlier 6500) is there, but if employer and employee agree on higher deduction then it can be paid.  otherwise the employee / employer will pay with the ceiling limit of Eligible limit of 15000 only, 

Exemption is out of scope in case of covered establishments, unless the employee reach the age of retirement i.e 60 years 

 

 

1 Like
avater

Jyothis (Article)     25 December 2015

Jyothis
Article 
 7 likes  1127 points

View Profile | My Other Post

Company is not deducting PF on employees whose Gross pay is Rs.15K/more,

Payroll formula is like this,

To check PF applicability-Gross pay Less than Rs.15K

PF Wages for contribution only is  - Basic + DA

In almost major cases,....Basic+DA is less than Rs.15K,

My doubt is whether what is the pf wages to check PF mandatory deduction,is it Basic+DA or gross Pay.

avater

U S Sharma (glidor@gmail.com)     25 December 2015

U S Sharma
glidor@gmail.com 
 1739 likes  21021 points

View Profile | My Other Post

PF can not be avoided for age below 60 years by covered establishments 

1 Like
avater

Jyothis (Article)     26 December 2015

Jyothis
Article 
 7 likes  1127 points

View Profile | My Other Post

Company is not avoiding PF in general ....Is it mandatory for company to deduct PF on employees whose gross pay exceeds 15,000 bt Basic+DA is less than 15000.

avater

U S Sharma (glidor@gmail.com)     28 December 2015

U S Sharma
glidor@gmail.com 
 1739 likes  21021 points

View Profile | My Other Post

not true 

EPF ceiling limit is 15000/- that means the contribution is limited to 15000 (Basic+ DA) per month, and it does not exempts any employee under 60 of age.

However if employer and employee both get agreed then the ceiling can be raised to enhanced amounts also. 

1 Like
avater

Jyothis (Article)     28 December 2015

Jyothis
Article 
 7 likes  1127 points

View Profile | My Other Post

Sir,

My doubt is PF applicable to an employee whose gross pay exceeds Rs.15,000 but Basic+DA is less than Rs.15,000.

Eg-Mr.A a new joiner of Bltd,whose basic+DA is Rs.12,000 & additional Allowance Rs.4000.I.e gross pay exceeds Rs.15,000.

Is company liable to deduct PF.

avater

Jyothis (Article)     03 January 2016

Jyothis
Article 
 7 likes  1127 points

View Profile | My Other Post

Mandatory PF applicability to be checked on what part of salary-

1)Basic alone

2)Basic+DA+Retaining Allowance

3)Gross Pay

I know contibution is limited to maximun of Rs.15000 of (Basic+DA)

avater

U S Sharma (glidor@gmail.com)     05 January 2016

U S Sharma
glidor@gmail.com 
 1739 likes  21021 points

View Profile | My Other Post

Normal eligible amount is Basic+ DA for EPF contribution

Exempted is HRA/ Education / TA 

However check the terms of retaining allowance, if its casual nature of pay then exempted, if fixed nature of pay then clubbed, 

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »