Queries on EPFO- revised basic wage limit on which PF contribution will be done - CiteHR
Gopinath Varahamurthi
Mindhour Partner, Ass.professor/adm. Officer,
Rajniverma
Hr Executive
Sparsh Deep
Human Resources

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"From 1st September 2014, the EPFO has revised the basic wage limit on which PF contribution will be done from Rs.6500 to Rs.15000"
Q1. If Rs. 15000 is upper basic wage limit on which PF contribution will be done, is there minimum wage limit too?
Example: IF Basic wage is > X and <15000, THEN Employee is eligible for PF - what is the value of X?
Q2. PF is calculated on 12% of (Basic + DA) or 12% of (Basic, DA, Conveyance, Other Allowance etc. (heads of pay which are included for PF calculation) and excludes House Rent Allowance, Bonus etc. (heads of pay which are excluded for PF calculation) as per the provisions of the PF Act)?
Q3. If Employee Basic salary is 20,000 and he wishes a PF deduction, Is here eligible? If yes then will it be mandatory for Employer to contribute as well(given that employer would not pay more than 12% 15000 =1800).

Q1. If Rs. 15000 is upper basic wage limit on which PF contribution will be done, Is there minimum wage limit too? - Minimum Wages prescribed under Scheduled employment for particular company
Example: IF Basic wage is > X and <15000, THEN Employee is eligible for PF
what is the value of X? - It should be minimum wages prescribed by government authority.
Q2. PF is calculated on 12% of (Basic + DA) or 12% of (Basic, DA, Conveyance, Other Allowance etc. (heads of pay which are included for PF calculation) and excludes House Rent Allowance, Bonus etc. (heads of pay which are excluded for PF calculation) as per the provisions of the PF Act)? - PF - Basic + DA/Special Allowance Declared by Appropriate Governemnt.
Q3. If Employee Basic salary is 20,000 and he wishes a PF deduction, Is here eligible? - Yes company agrees to do So then
. If yes then will it be mandatory for Employer to contribute as well(given that employer would not pay more than 12% 15000 =1800). Yes it is mandatory for employer to contribute

dear friend,
1) the basic salary and DA = the ceiling is Rs,15,000/- so the contribution is equal to and less than Rs.15,000/-
2)PF is basic salary and DA rest are variables that is why the authorities have not included.
3) If the basic salary itself exceeded Rs.15,000/- the employer have the full option of exempting paying the contribution, however, if the employee want to remit the amount it is the employee-employer relation in contribution. (PF ACT is very clear in this regard.

dear friend,
ans 1) if the basic salary + DA = Rs. 15000/- or less than Rs 15000/-, he is eligible for taking the pf benefit because the ceiling limit is upto Rs 15000/-.
ans 2) As per the rule, only basic salary + DA is taking in deduction pf amount from the employee's salary.

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