As per the PF Act, the maximum basic salary entitlement for PF is Rs. 6,500. My question is, if an employee's salary exceeds this limit after receiving an increment, are they still entitled to make Employee PF Contributions? If yes, is the contribution fixed at Rs. 780, or can the company exclude such employees from contributing?
From India, Mumbai
Acknowledge(0)
Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
2
Thank you very much for the valuable answer. I recently visited the EPF India site but could not find any information related to the increased basic limits for PF contribution in Maharashtra State. Kindly send me the circular if it is available with you.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
EPF Salary Limit and Contribution Details
To date, the ceiling salary limit for EPF is Rs. 6,500. There has been no amendment to increase the limit to Rs. 10,000.
Once members are enrolled in PF, they will continue until the end of their service. The statutory obligation is to contribute up to the ceiling salary. However, both employees and employers can choose to contribute based on higher salaries if they wish.
Regards,
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
To date, the ceiling salary limit for EPF is Rs. 6,500. There has been no amendment to increase the limit to Rs. 10,000.
Once members are enrolled in PF, they will continue until the end of their service. The statutory obligation is to contribute up to the ceiling salary. However, both employees and employers can choose to contribute based on higher salaries if they wish.
Regards,
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx