Nowhere in the PF Act it is stated that you should not pay contribution on salary above Rs 15000 and most of the good companies follow the practice of paying it on higher salary. Only thing is that pension fund contribution of 8.33% by the employer is restricted to 8.33% of 15000.
Further to the above discussion, request your advise on the case below :
Employees's Gross wages : Rs.42000 /- (Basic + Special Allowance +Mobile allowance)
EPF Wages : Rs.15000/- ( as per ceiling limit)
What should be filled in Column C - Gross Wages in ECR XL? a)Rs. 42000/- i.e. actual GROSS WAGES?
b)Rs. 15000/- as per ceiling limit.
Also, on what is the PF Admin Charges calculated ?
Please refer this example below :
NAME GROSS WAGES EPF WAGES EPS WAGES EDLI WAGES EPF CONTRI REMITTED
Mr. A 42000 15000 15000 15000 1800
Mr. B 30000 15000 15000 15000 1800
Mr. C 24000 15000 15000 15000 1800
Mr. D 18000 15000 15000 15000 1800
Kindly help and advise.
On the otherhand, if your policy is to restrict the contribution to 12% of Rs 15000,make it as 1800 employees share to PF, 1250 (pension fund), Rs 550 employer's share to PF and EDLI Rs 75