Anonymous
Dear All, If an employee basic salary is increased from 14,000 to 16,000 and his contribution has been deducted earlier.

1. Will this employee will be continued covered or employer can withdraw his contribution ? Please share me the EPFO notification on the same.

Regards
Sanjeev Kr

From India, Gurgaon
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Saswatabanerjee
Partner - Risk Management
Drsivaglobalhr
Doctor Siva Global Hr

Dear All,

If an employee basic salary is increased from 14,000 to 16,000. His was EPFO contribution is being deducted from his previous basic salary. Now the question is after increase in his basic salary he will be a member of EPFO or not. If It is please share me the EPFO notification or guidelines.

As per Act Employer will pay his contribution till Basic + VDA is Rs 15000.

From India, Gurgaon
Dear Colleague,
It operates as per Clause 26A of the EPF Scheme 1952. Yes a member once covered to continue as member untill he withdraws his PF. However you can restrict the PF contribution in respect of such employees to INR15,000/- which is very well allowed under the Provisions.

26A. Retention of membership
(1) A member of the Fund shall continue to be member until he withdraws under paragraph 69 the amount standing to his credit in the Fund or is covered by a notification of exemption under section 17 of the Act or an order of exemption under paragraph 27 or paragraph 27A.

- He will be a member of PF
- PF Contribution can be restricted to INR15,000/-

From India, Chennai
I saw the exact same question 4 times today. Is this genuine or is someone cross posting or trying to get interview question paper solved ?
From India, Mumbai
Dear Saswata Ji,

This is the genuine question and i have posted on the relevant group to know more about the followings

If an employee basic salary is increased from 14,000 to 16,000. His was EPFO contribution is being deducted from his previous basic salary. Now the question is after increase in his basic salary he will be a member of EPFO or not. If It is please share me the EPFO notification or guidelines.

As per Act Employer will pay his contribution till Basic + VDA is Rs 15000.

Regards
Sanjeev Kumar

From India, Gurgaon
Well, you have received the answer
The PF act does not say employer will not pay PF after he crosses 15,000 it says the maximum will be restricted to 12% of 15,000

This question has been aswered so many times on the forum that I have lost count. A simple search would have given you the answer.

And BTW, putting the question multiple times in various other threads, it does not help.

From India, Mumbai

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