MK_Neo
3

Hi members, What is the amount of EPF deduction from salary if someone's earning 50,000 of Basic + DA?
My doubt is: what is the minimum or default liability as per the EPF scheme of deduction and employer's share?
Thanks

From India, Delhi
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Nanu1953
Ceo-usd Hr Solutions

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Kuldeep Kumar Chauhan
5

Dear Member, Employees drawing less than Rs 15,000 per month have to mandatorily become members of the EPF.As per the rules, in EPF, employee whose 'pay' is more than Rs 15,000 a month at the time of joining, is not eligible and is called non-eligible employee. However on consent from both side and with permission from EPFO, such employees also can become member limited Rs. 15000 salary.
From India, Lucknow
MK_Neo
3

Hi, thanks for the reply. I forgot to add that he is already a member of EPF.
From India, Delhi
nanu1953
278

There are few options depends on the conditions. If it is fresh employment or otherwise excluded employee as per EPFO Rule, then in the present situation the employee is excluded employee. In that case as per the policy of the Organization, the employer may voluntarily deposit PF contribution up to 15,000/- or may be on the entire Basic & DA which is this case - 50,000/- per month.

If the employee joining as experience candidate was earlier member of EPFO and not settled his PF account ( the employee is covered employee), then it is must to deposit PF contribution at least up to 15,000/- per month or voluntarily may be up to 50,000/- per month.

It will vary with case to case basis.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions


From India, New Delhi
MK_Neo
3

Thank you, Mr Bandyopadhyay. Can you further explain how to increase only the employee’s contribution based on actual salary? Because in ECR, there’s only one column for EPF wages.
From India, Delhi
nanu1953
278

Any extra % of Basic and DA of any employee may be add to employee contribution voluntarily. This is being followed by the organizations and there is no issue from EPFO.

This is known as VPF from employee side but no extra contribution from employer side.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions


From India, New Delhi
MK_Neo
3

Thanks. One last thing. Will this lead to additional EPF admin charges?
From India, Delhi
nanu1953
278

No. Admin charge is based on such figure which is not changing. If employer will also contribute, the Admin charge will increase. There are organizations where employer and employee both are contributing on entire amount of Basic & DA with no cap. In those cases admin charge is more.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions


From India, New Delhi

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