Understanding PF Coverage: What Happens When Wages Exceed the Limit?

Understanding Employee Provident Fund Contributions

As per the EPF and Miscellaneous Act, 1952, if an employee draws a wage less than Rs 6,500, they are to be covered under the PF scheme. But what if it's more than that? Does it depend on the company whether they want to contribute to the Employee Provident Fund?

Employee Pension Scheme and Employee State Insurance

The same question applies to the "Employee Pension Scheme" and Employee State Insurance, where the wage/salary drawn should be less than Rs 15,000.

As of now, the new changes state that individuals drawing a salary of ₹15,000 are also covered in PF. For ESIC, anybody earning less than ₹15,000 also has to be covered under the ESIC Act.

Regards

As of now, the new changes state that a person drawing a salary of ₹15,000 is also covered in PF. For ESIC, anybody earning less than ₹15,000 also has to be covered under the ESIC Act.

Regarding the issue, only quotes from newspapers seem to be available, and no official order or gazette has been issued in this context. It would be inaccurate to jump to conclusions based solely on newspaper reports. Let's wait for the official order, as the recommendations from the Ministry of Labour are currently under consideration.

Thanks & Regards,

Sumit Kumar Saxena

Employees receiving wages exceeding Rs. 15,000 are not covered under the ESI Act, 1948. An employee whose wages are exactly Rs. 15,000 per month is covered under the said Act. Kindly refer to Rule 50 of the ESI (Central Rules) 1952.

Regards