Dear Colleagues,
Q1. The query is for those employers who treat the PF dues on basis of Rs. 15000 limit on EPF wages and not the entire amount.
In an example of such employer, if some employee has PF wages defined as say Rs. 50000 /- per month. If such an employee is on Loss of pay for 15 days out of 30 in April, what is the PF deduction and contribution?
- Is it based on the fact that since the employee is paid Rs. 25000 /- for that month (15/30 X 50000), the PF should be 12% of 15000 (lower of 15000 and 25000) i.e. 1800 /- OR
- Should it be computed as PF wages is 15000 (lower of 50000 and 15000) and PF wages pro-rated as per LOP days is 15/30 of Rs. 1800 i.e. Rs. 900?
Q2. The query is for those employers who treat the PF dues on basis of the entire amount.
In an example of such employer, if some employee has PF wages defined as say Rs. 50000 /- per month. If such an employee is on Loss of pay for 15 days out of 30 in April, what should be the EPF wages? 50000 or 25000 or 15000?

From India, Gurgaon
What is wages defined?
What is lower of ....and ...,
If your employee's PF qualifying salary is Rs 50000, and that employee is on loss of pay leave then the PF will be calculated on that reduced salary calculated on Rs 50000.
On the other hand, if your employee's salary is Rs 50000 but you pay contribution on a maximum of Rs 15000,then your PF qualifying salary is Rs 15000 and if an employee is on LOP then the proportionate reduction for the purpose of computation of PF should be from Rs 15000 and not from Rs 50000.
If you have anything more please post it clearly

From India, Kannur
Hi,
I have one doubt , when we talk about Gross Salary or Wages in ECR does it means gross salary of the perticular month? For example, in case of absent salary will be deducted and therefore the gross amount can change according to the attendance.

From India, Gurgaon
In ECR the gross salary means the actual salary payable for the month.
From India, Kannur
Anonymous
hi
As per the PF Act except HRA all other components to be taken into consideration for PF wage. if the wage exceeds the PF Ceiling ie Rs 15000 pay only for pf ceiling .(15000 *12 % = 18000) in case of lop pay for earned wages.

i have noted the calculation 15000 *12% =1800

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