Epf Ceiling Limit...............?

hi all,
can u tell me, if the employee has 40000/- rs. gross & basic is 16000/- rs.
so what would be the amount of pf deduction on behalf of employee as well as employer?
that is on max ceiling limit 6500 or on 16000..................?
thanx & regards,
Rahal Rana
07838861690

Rs.6500/- by the employer and the employee.
If the employee wants to contribute more, he has to apply for permission from the Provident Fund Office. However, the employer can restrict his contribution to the threshold limit of Rs.6500/-.
S. Krishnamoorthy

thanks mr. krishnamoorthy for reply, that means if my colleague has basic of rs. 16000/- then he has to get the permission from p.f. office for employee share deduct from basic...............?

Yes, the max ceiling amount is Rs.6500 /- Per month to be considered for deduction how ever If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer

I think that you have not understood the point.
1. All employees having basic pay + DA of Rs.6500/- are covered by the EPF Act.
2. If an old employee, crosses the threshold level of Rs.6500/-, his and his employer's contribution will be restricted to the threshold level of Rs.6500/-.
3. If a new employee with a basic + DA of more than Rs.6500/-, it is not mandatory for him or the employer to subscribe to EPF. However with the approval of the PF Commissioner, he can be enrolled. In this case, the employer's contribution is nil.
4. If an existing EPF Subscriber employee crosses the threshold level of Rs.6500/- he and the employer should continue to pay the contribution restricted to Rs.6500/-, the maximum threshold level.
I trust that this clears your doubts.
S. Krishnamoorthy

Dear Krishna Sir,
As you said in the 3rd Point of the new employee contribution not mandatory if his basic + D.A crosses Rs.6500 ceiling limit. I guess as per the PF act 1957 any organization employing 20 and above employees have to compulsorily take the PF coverage irrespective of their Basic + DA pay. If in case the employee earning more than 6500/- PM as his basic +DA can contribute more where as the employer can restrict his contribution to the Max ceiling limit.

The no. of employees is with reference to the coverage of an establishment by the EPF Act.