Please clarify the following points:
1. Has the rule making employee contributions to EPF voluntary, as announced in the Union Budget 2015, become applicable?
2. I have read in many places that employer contributions will be calculated based on the threshold limit of the maximum basic salary (currently Rs. 15,000 and previously Rs. 6,500), regardless of whether the employee's basic salary is higher. For example, if an employee's basic salary is Rs. 17,000, should the employer contribution be calculated on Rs. 15,000 or Rs. 17,000?
Thank you.
From India, undefined
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1. Has the rule making employee contributions to EPF voluntary, as announced in the Union Budget 2015, become applicable?
2. I have read in many places that employer contributions will be calculated based on the threshold limit of the maximum basic salary (currently Rs. 15,000 and previously Rs. 6,500), regardless of whether the employee's basic salary is higher. For example, if an employee's basic salary is Rs. 17,000, should the employer contribution be calculated on Rs. 15,000 or Rs. 17,000?
Thank you.
From India, undefined
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I am not aware if any notification has yet been issued to activate the Union Budget proposal of making employee contribution to EPF voluntary. Salary threshold is also not specified yet. Whether the basic salary is 15000 or 17000, the employer's share will be on Rs15000 only.
From India, Pune
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3180From India, Pune
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Statutory obligation is on ceiling salary, i.e 15000. But if employee and employer wish, contribution can be on actual salary beyond ceiling. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Dear Singh,
As per your question, the employee ceiling limit has been raised from 6500/- to 15000/-. However, for the employer, it remains the same at 6500/-. The percentages, rules, and pension regulations all remain unchanged.
Thank you.
From India, Bangalore
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As per your question, the employee ceiling limit has been raised from 6500/- to 15000/-. However, for the employer, it remains the same at 6500/-. The percentages, rules, and pension regulations all remain unchanged.
Thank you.
From India, Bangalore
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No, ceiling salary hiked to Rs. 15000 means employer is also obliged to contribute on actual salary up to Rs. 15000. Otherwise who will contribute to Employees' Pension Scheme - 1995. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Union Budget 2015.pdf
Employee Benefits.doc