Confused About EPF Interpretation? Help Me Decide Between Option A or B!

Clarification Needed on EPF Interpretation

All are requested to please clear the doubt on the attached EPF interpretation. Please see the attached EPF Interpretation and let us know which one is the right interpretation - A or B?

Thanks & Regards,
Reddy

Pension contribution is calculated based on the ceiling salary of ₹6,500 on a pro-rata basis. Therefore, the salary for 20 days would be ₹6,500 x 20/31 = ₹4,194, and the pension contribution would amount to ₹4,194 x 8.33% = ₹349.

Regards,
Abbas.P.S

Thank you for your clarification. In the attachment, the earned basic for 20 days is Rs. 9678/-. In this case, what should be the considerable pension salary: Rs. 6500/- or Rs. 4194/-?

Thanks & Regards,
Basivi Reddy

From my above posting, it is clear that the ceiling salary for one month is Rs. 6500, and for 20 days, it is Rs. 4194. Accordingly, the contributions will be deducted/credited.

Abbas.P.S

Implementation of Pensionable Salary Ceiling

How will this be implemented? If the ceiling salary for the pension is Rs. 6500, it means that for 30 or 31 days, it will be considered as 6500. Accordingly, for fewer days, the calculation will be done on a pro-rata basis. Therefore, Case B is correct.

Abbas. P. S.

Case B is not correct. Case A is correct because he has drawn the salary of Rs. 9678 for 20 days, and EPF has to be paid at 12%, and EPS has to be paid at 8.33% on Rs. 6500/-. The Rs. 6500/- cannot be proportioned for 20 days.
Sanagapalli