Provident Fund Deductions from Minimum Wages: How Does It Work in H.P. Government?

sksbaddi@gmail.com
Kindly clarify the procedure for the deduction of Provident Fund from minimum wages as per the H.P. Government of Rs. 5100/-.

With Regards,
S.K. Singh
sumitk.saxena
Dear SKS,

As you mentioned, the HP minimum wage is Rs. 5100/-, then the deduction should be 12% (EPF) - Rs. 612/- Employee share. Employer Share 3.67% (EPF) - Rs. 187/-, 8.33% (EPS) - Rs. 425/-. As the new ceiling is concerned, the employee whose basic salary falls under the ceiling for EPF/EPS deduction should be on the same scale. If the employees who were benefiting from EPF earlier, their benefits should continue if their basic salary rose above Rs. 15000/- or less, then compliance should be based on the actual basic or Rs. 15000/-. The rest admin charges should remain the same as earlier, instead of Rs. 6500/- (EPD/EDLI ceiling), Rs. 15000/- should be considered for EPS/EDLI.

Account Details for Deductions

A/C 1 - 12% (+VPF) + 3.67% of EPF salary.

A/C 2 - 1.1% of EPF salary, not less than Rs. 5/-.

A/C 10 - 8.33% of EPS salary (ceiling is Rs. 15000/-), not more than Rs. 1250/- each.

A/C 21 - 0.5% of EDLI salary (ceiling is Rs. 15000/-), not more than Rs. 75/- each.

A/C 22 - 0.01% of EDLI/EPS salary (ceiling should be Rs. 15000/-), not less than Rs. 2/-.

Thanks & Regards,

Sumit Kumar Saxena
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