What should be the employer contribution to PF be, if the salary break-up is as below:
Basic Pay : 121,667 p.m.
House Rent Allowance: 60,834 p.m.
Leave Travel Allowance: 1,250 p.m.
Special Allowance :118,616 p.m
Can it be 1800 p.m... given the above salary break-up?

From India, Hyderabad
Freelancer In Hr &indirect Taxes For
Bhartiya Akhil


Epf wages should be less than 15k.
Above 15k you can exclude eployee from epf.
If he has been the member previously, than he must be continued for epf contribution.
For voluntary epf is to be contributed, employer and employee need to submit joint application for increased epf contribution.
However employer is not any oblifation to pay his contribution for more than 15k.

From India, Vadodara
Thank you for the response, I am not sure I understand the explanation well.
Isnt the employer contribution also 12% of Basic just as the employee would make to EPF. Which rule is this, where the employer is not obligated to pay his contribution for more than 15K. For context, The employer here is a large MNC.

From India, Hyderabad
Bhartiya Akhil

Dear Anamik Friend,

Here I try my level best to give you answer understandable to you.

PF Act is applicable to employee with salary up to Rs. 15000/- p.m.

Once a person is a member of PF, he is a member of PF forever till such time he is in employment even-though his salary is exceeded Rs. 15000/- pm.

Salary exceeding Rs. 15000/- pm. with no PF membership earlier, it is not mandatory to admit him / her under PF. You can admit him / her under PF with joint declaration. In this case, you have an option to restrict his contribution on Rs. 15000 or contribute on actual salary with joint declaration.

In your case, if the employee is already having PF membership in earlier employment, you have no option but to admit him as PF member. Restrict the contribution on Rs. 15000/- pm. or contribute on actual salary, by obtaining joint declaration.

If the employee is not a member of PF before, you have an option to admit him as a PF member or not to admit. If you admit him as PF member, you can restrict the contribution on Rs. 15000/- pm. or contribute on actual salary, by obtaining joint declaration.

As regards to Pension, if the employee was not a member of PF and EPS earlier and now he is contributing PF on more than Salary Rs. 15000 pm. with you, then you have to exclude him from EPS.

Form 11 is very important document to ascertain all this things.

From India, Mumbai

Employer is not under any obligation to pay epf contribution beyond the specified max ceiling of basic wages, which is 15k.
Any employee however,can contribute epf on higher basic wages beyond 15k limit, for which he and his employer has to apply jointly to epf commissioner and get approval.

From India, Vadodara
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