Understanding the PF Limit Increase to 15,000: What Does This Mean for You?

PF Notification: Enhancement of Limit to 15,000

Please refer to the attached Net Result and Opinion on the PF notification regarding the enhancement of the limit to 15,000.

Thank you.

Regards

Dear Hiren ji, Thank you very much, Sir, for your elaboration on PF new amendments with net results and your opinion on it. I am a bit confused about your Point E to NET RESULTS and OPINION. May I request you to kindly have a re-look at it?

Also, could you please explain where it is mentioned in the notification that the employees whose pay at the time of joining the establishment is over and above 15,000 are only to join EPF and EDLI Scheme and shall not be eligible for joining the pension scheme?

The view raised by Mr. Keshav Korgaonkar on your Point E of NET RESULTS and OPINION seems to be confusing. In my opinion, the Employer's contribution of 8.33% on Rs. 15,000 towards EPS would be Rs. 1,250, and the balance of Rs. 550 will be remitted to the Employer's PF contribution.

We need to seek clarifications from the Provident Fund Commissioner about the employees whose pay at the time of joining the establishment is over and above Rs. 15,000. These employees are only to join the EPF and EDLI Scheme and shall not be eligible for joining the pension scheme, since there was an email from Esewa about the salient features, which are enumerated below:

From: Employer Esewa [mailto:[Email Removed For Privacy Reasons]]

Sent: Thursday, August 28, 2014, 10:01 AM

To: Epfo

Subject: Increase in Wage Ceiling - EPF ACT Amendments

Salient Features are:

1. Wages Ceiling of EPF increased to Rs. 15,000.

2. Minimum pension Rs. 1,000 for 2014-15.

3. EDLI benefit increased by 20 percent.

4. Fresh option to be exercised within 6 months for contributions beyond Rs. 15,000.

5. No fresh membership to EPS for employees above Rs. 15,000 at the time of joining.

In case of any information from Provident Fund Officials, I shall share the same with the members.

Regards,
Satishkumar

Dear Seniors,

I'm searching for answers to my queries in many places, but unfortunately, could not find them. Hence, I am requesting all of you to help me with this.

Query on Employees Provident Fund Payment Delay

My query is, if an employer delays the payment of the Employees Provident Fund (both the contribution and deduction), does it affect the interest on the part of the employee, or will employees receive full interest from when the contribution is supposed to be paid?

Regards

Employee PF Contribution Calculation

How will the calculations be done for an employee whose basic salary is Rs. 100,000/- and was contributing on the entire basic till 31.08.2014? As fresh consent is required for employees contributing on a salary of more than Rs. 15,000/-, can they discontinue being a member under PF?

Regards,

Dear Hiren ji,

Thank you very much, Sir, for your elaboration on the PF new amendments with net results and your opinion on it. I am a bit confused about your Point E to NET RESULTS and OPINION. May I request you to kindly have a re-look at it?

Clarification on Employee Eligibility for EPF and EDLI Scheme

Also, could you please explain where it is mentioned in the notification that the employees whose pay at the time of joining the establishment, in case it is over and above 15,000, are only to join the EPF and EDLI Scheme and shall not be eligible for joining the pension scheme?

Paragraph 11 and clause 7 of the attached circular state the same as you mentioned: Employees whose pay at the time of joining the establishment, in case it is over and above 15,000, are only to join the EPF and EDLI Scheme and shall not be eligible for joining the pension scheme.

Regards.