Whether consolidated like the example cited in the post or componential, when the monthly wages/salary is Rs.15000-00 or below, EPF contribution has to be calculated on all components other than HRA and the employee's share to be deducted and paid to the EPF along with the employer's contribution. When the salary is above Rs.15000-00 pm, the employee, if he is not already a contributor to the fund, goes automatically out of the coverage of the Act. Here, the gross monthly wages/salary has to be taken as a single package for the purpose of application of the EPF Act,1952 and not in terms of components. Therefore, such an exercise is an unnecessary one and it would have its repercussion in the calculation of the other terminal benefit of statutory gratuity.
6th May 2019 From India, Salem