Understanding New Provident Fund Rules and EPF Membership Eligibility

We were making a payment of the maximum PF of Rs. 6500.00 on the basic salary of Rs. 8000/-. Do we have to pay Rs. 960/- per the new amended rules of PF? Please advise.

Yes, you have to remit 12% on 8000, resulting in an amount of Rs. 960 to EPF.

Abbas.P.S

Also, please note that the PF is not only payable on the basic salary, but on Dearness Allowance and all other allowances that are payable regularly in terms of employment. It is not payable on HRA, Overtime allowance, Bonus, Commission, or any other payment in the nature of commission.

Dear All,

I am also confused regarding how much % to be deducted.

1. Suppose I have an employee, and his drawn salary is 14800/- gross per month. And he is not a member of EPF, but now, as per the direction of the EPF department, the PF ceiling is increased by 15000/-. My question is, is he eligible to be an EPF member or not?

2. I have a new recruit, and the proposed salary is Rs. 13954/- gross per month. Is she eligible for EPF or not?

Dear/Seniors, please suggest what I should do.

Hope for an early reply from your side.

Thanks & Regards

Dear Bhagat R K,

In both cases mentioned above, PF has to be remitted. It is now mandatory to pay PF for a salary up to Rs. 15,000/-

Abbas.P.S

Dear Abbasiti,

Suppose an employee receives 14950/- gross per month, and we structure his salary breakdown as follows: Basic - 6000, HRA - 2600, Conv. - 800, Spl. Allow. - 5550. My question is, is this arrangement valid? Secondly, can we adjust his basic salary higher or lower, or is it mandatory to deduct his PF until his salary exceeds the 15000/- limit?

Thank you.

Dear Bhagat,

Regarding your query, are you referring to PF remittance or the pay structure? In terms of PF, it is required to remit 12% of basic+DA (in this case Rs. 6000) to the PF account. As for any manipulation or discrepancies, I regret to inform you that I am unable to provide an answer at this time.

Best regards,
Abbas P. S

[QUOTE=rakesh_bhagat26@rediffmail.com;2188794]
Dear All,

I am also confused regarding how much % to be deducted - the same 12% on basic.

1. Suppose I have an employee and his drawn salary is 14800/- Gross per month - keep 50% or more in basic and deduct 12% on that.
14800 - basic could be 7500, hence deduction is 900 + employer contribution is also 900
And he is not a member of EPF.
This is not possible unless you have a PF trust to give more benefits
But now, as per the direction of EPF deptt., PF ceiling increased by 15000/-, here is my question: is he eligible for EPF membership or not.

2. Having a new recruitment and his proposed salary is Rs. 13954/-
Even if your housekeeping staff receives 7000 as salary, you should deduct the EPF.

Reach my mail [Login to view] for more clarification and assistance.