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Wge limit under EPF act to cover an employee is Rs.6500/ per month.Any employee drawing wages more than above will be termed as excluded employee provided he is not already a member of PF.if he is already a member of PF then his PF deduction will be on 6500only.
chief editorBUSINESS MANAGER
7th May 2006 From India, Delhi
According to the Act, The celling for the PF deduction is Rs.6500.00pm. If the Basic is more than Rs.6500.00 then it depends upon the policies of the company. If the company thinks fit than the company can pay employer share.
If the employee does not want to become a member of PF & Pension Fund., in that case employer must take unwillingness from the employee in writing
21st June 2006
The wages ceiling of Rs.6500/ is statutory. Employees above the ceiling are not to be covered. But most of the Employers cover their Employees under the Principle of Equity.
I know some of the Employers, are not covering the persons who are in the category of above( the Basi+ DA) is Rs.6500/ and also if the Pay enhanced due to Pay Revision or Incremental effect, the employer recover only upto to the extent of Rs.6500/- only for their employees who are already as PF Subscribers on Rolls.
Hope this clarification clear your doubts upon the same.
With Warm regards,
Narayana Murty BV
Hyderabad Cell No: 9394712629
Tel: :D 040-23431552
6th October 2006 From India, Visakhapatnam
If you look at the PF act, it is clear that deduction of PF above monthly salary of Rs.6500/- ( Basic+DA) is exempted only if he is a newly recruited employee. More clearly, if a person's salary (Basic+DA)was increased from 6000 to 6700 the employee will not be exempted, but he has to pay @12% of 6500, the wage ceiling.
The act also explains that with mutual consent from both parties higher contributions can be paid.
In your question you mentioned only Rs.10000/ pm as salary.
1. if you mean the salary as basic+da for a newly joined employee it is exempted
2. if the basic+da is less than 6500 it is applicable
3. if that is an employee on the roll for past years and if the salary has been increased to 10000 it is again applicable up to the ceiling rate of 6500/-
14th May 2007 From India, Thiruvananthapuram
There has been a revision in ESIC limits. The limit has been increased to Rs. 10000/- p.m. I understand this happened w.e.f. Oct 2006.
Also, I understand that the employer contribution toward PF need not exceed Rs. 780/- p.m. The employee's contribution will be 12% of basic, but the employee has the option of not paying PF which is more than 780/- p.m.
5th June 2007 From India, Mumbai
There is no such limit like maximum of Rs.780/- but as an employer you can give more contribution for the benefit of your employee.
7th June 2007 From India, Thiruvananthapuram
Without permission, pf dept will not pay interest on extra amount deducted as pf contribution i.e. over & above 12%
7th June 2007
For my information, kindly inform me, under which Section of EPF & MP Act, 1952 or Para of EPF Scheme 1952, it has been made mandatory to apply to Commissioner for contributing to VPF and where is the ceiling of 20% on VPF mentioned.
Also kindly inform me, is there any provision in the Scheme to refuse interest on PF accumulations of an employee if he is contributing over and above the mandatory limit.
Request your input as we have to make a corporate policy and supporting documentation.
9th June 2007 From India, Mumbai
Wage ceiling for PF is Rs. 6500/- (Basic)
Employee conntribution (12% on Basic) goes to PF Account No 1.
and Employer contribtuion (12 % on Basic)
Account no 10 (Pension Fund) 8.33 % up to Maximum limit of Rs. 540/- and rest (3.67%) goes to Account no 1.
Rs. 10000 Gross is wage ceiling for ESIC w.e.f 01.10.2006.
14th June 2007 From India
7th July 2008 From India, Mumbai
Simply Have a consent from the employees who has got an increment and now their Basic+DA has crossed 6500/- saying that whether they want deductions at a higher rate or the Rs. 6500/- at the same time make them understand Employer will not be liable to pay more than Rs. 780/- (12 % of 6500). If they Agree to deduction @6500/- Matching Cont. will be a Paid by Employer and If They Tend to Get deducted ata higher rate Employer Will pay at limit, However looking at employee's welfare employer is also free to contribute at a higher rate maximum up to 24 % of Basic both in case of Employee and Employer.
7th July 2008 From India, Delhi
Is any law for the same bcoz i am not able to find any goverment MO on same.:icon10:
9th May 2009 From India, Lucknow