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Pf applicability

Jyothis (Article) (1127 Points)

22 December 2015

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.

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8 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 24 December 2015

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

Jyothis (Article) (1127 Points)
Replied 25 December 2015

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.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 25 December 2015

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

1 Like

Jyothis (Article) (1127 Points)
Replied 26 December 2015

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.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 28 December 2015

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