Madhu.T.K
Industrial Relations And Labour Laws
+2 Others

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Dear Members
I have a doubt regarding PF contribution. That is , in case an employee have 14000 basic salary in the month of January and he will be under pf coverage. But next month salary increment done and that employees salary increased to 16000, still he is under PF act or not? We need to contribute To EPF? if yes on what basis we should calculate it? please explain with related section.
AKHIL S
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An employee once covered under the PF will continue to be covered irrespective of any increase in the salary. Therefore, if his salary exceeds Rs 15000, he should contribute at least on 15000. The employer, in turn, should also contribute at least on Rs 15000.
Madhu.T.K
Yes you need to contribute epf, if u do not want to contribute pf then have need to show that employee unempoyed for 2 month
Consider an employee getting a basic salary of 20000. We can calculate it in different ways but EPS is calculated only up to 15000( was Rs 6500 before 1 Sep 2014) that means the maximum amount is fixed to Rs 1250( Before Sep 1 2014 it was 541.00).
Let me correct Karthikeyan that it is not necessary that you should calculate the contributions (employee and or employer) on Rs 15000, but if you wish to contribute on a higher salary, say, Rs 20000, you can contribute. Though you contribute on higher salary, the contribution to Pension Fund shall be on Rs 15000. The remaining amount of employer's contribution shall be deposited in the Provident Fund and in such cases it will not be exactly 3.67% which will go to PF from the employer's side but more than that.
It is also possible that employees contribute on actual salary which may be above Rs 15000 but the employer will restrict his contribution to 12% of Rs 15000.
Madhu.T.K
Pl help me out in resolving below mentioned query:
Suppose my salary is as below mentioned:
Basic 14122
cca allowance 7250
Gross 22784
My Pf is deducted with capping of 15000
Therefore, is it necessary to deduct pf on 21372 (including other allow) or it should be only on 14122
And what is my pf Contribution ??? 1800 either 1695
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