EPF Issues - CiteHR
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Educator, Management Consultant & Trainer
Vidyadhar Bhat
Consultancy In Pf
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Dear All,
Need clarification with respect to PF deduction, employee basic is More than INR.15000/- and contribution is restricted to ceiling limit of INR.15000/-
Employee is on leave earned less than INR.15000/- in a month, then should I deduct on actual earned Basic and Da or on prorate basis on INR. 15000/-
If employee worked 5 days in a month and earned INR.7000/- as Basic and Da then should I deduct on 7000 or (15000/30*7)INR.3500/- Please do reply with notification copy with respect to this.
Please do the needful

Hi Nirmala
If at all employee us earning above 15000/- and you are restricting to the ceiling limit & in any month if employee received wages less than 15000/- (For example 14000/-) then PF is calculated on the actual earned wages only (12% on 14000/-)
If employee earned only 7000/- as Basic+DA then PF is contributed on 7000/-

No need to deduct the PF if Basic less than 15000 due to absent or W.P.
YOU HAVE TO KEEP HIS FORM 11 in Your Records.If One or Two months basic less than 15000 than it is exceptable by EPFO but not more than that.
Also know for furthe info you can go with your respective RPFO.

Once any employee is member of EPF then there is no point if exemption even if he/she is employed in different organisation.
More over the question is WRT to existing coverable employees who is earning above 15000/-

Its settled law and provision clarifying that by virtue of fact an employee's full month's rated salary / wages has been more than cover-able limit, ie he is having a status of excluded/ exempted employee and in a situation if he/ she has less attendance, earning is less than Rs. 15,000/ then PF is not attracted and contribution is not payable even if he is drawing one day salary/ wages.Such employee (s) will be always out of purview of PF coverage.
RDS Yadav
Navtarang HR Services

Nirmala, The contribution is on wages earned. Subject to max. 15000/- If member has worked for 25 days and wages are above 15000/- PF will be on Rs. 15000/- and not 15000/30*25. Thanks,
Dear Shubham Sharma, Please share with me form 11 for non pf employee whose earn above 15000 Regards Rishiraj Mishra
Dear Mr Rishiraj, You can go & download it from the epfo website ...It is new ammended Form 11 which is computerised.
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