In a given situation, if an employee continues to be covered under the EPF scheme (as a member even after a salary beyond 15K pm) but fails to attend duty in a month and remains without pay for 10 days, they get a prorated salary for 20 odd days, which amounts to say Rs. 16,000 inclusive of 'basic wages' and allowances liable for PF contributions as per the definition under "Section 2(b) comprising all emoluments earned by an employee while on duty, leave, or holidays with wages in accordance with the terms of the contract of employment and paid or payable in cash to them.
Shall the contribution at 12% be levied on the paid salary/wage upon the limit of Rs. 15,000 pm (comprising the above-defined emoluments) to the extent available with respect to the 20 days prorated paid days, or shall it be on the prorated Rs. 15,000 pm itself?
From India, Bengaluru
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Shall the contribution at 12% be levied on the paid salary/wage upon the limit of Rs. 15,000 pm (comprising the above-defined emoluments) to the extent available with respect to the 20 days prorated paid days, or shall it be on the prorated Rs. 15,000 pm itself?
From India, Bengaluru
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx