New PF Calculation Rules: How Will This Affect Our Company's Contributions?

According to the new circular issued by PF officials, Employee PF will be calculated against the complete salary as compared to just Basic & DA earlier. Please check and revert on an urgent basis on how this will impact us towards the Company's contribution.

Please refer to the attachment wherein it has been stated that wages (basic + DA and so on) on which EPF/EPS contributions are to be made can be restricted to Rs. 6,500.00. If the employer is willing to pay the administrative and other charges over and above the wage limit of Rs. 6,500.00, contributions can be made accordingly.

I feel that the circular is issued to avoid the misinterpretation of the term 'basic wages' and the splitting up of minimum wages.

I am of the view that any change or amendment in an Act can only be made through gazette notifications and not mere circulars. However, if I am mistaken, please clarify.

Regards

I am writing to inform you that the Honorable Union Minister for Labour and Employment, Sri Mallikarjun Kharge, stated that the circular dated 30-11-2012 issued by the EPF department is being kept in abeyance. The same information is published in The Hindu dated 14-12-2012, which is attached here for the information of the members.

Regards,
B. Lakshman Rao