EPFO Allowances: How Do You Re-initiate the Process as Directed in the Inspection Order?

EPFO - Re-initiate the Process

Re-initiate the process to include allowances with basic pay as directed in the inspection order. Please provide an explanation. (Urgent)

Please find attached herewith a circular from EPFO: HO, New Delhi dated 06.08.2014, which is self-explanatory regarding your query. This circular directed EPFO officers to inspect establishments that split wages, with the basic component accounting for 50% or more of the gross pay.

EPFO highlighted that many employers split wages into various allowances to reduce their PF liability. The directive to inspect establishments aimed to comprehend the seriousness of this issue and make decisions regarding the detailed process of combining allowances with the basic pay, as suggested by the review committee.

Kind regards

Dear All, can you please tell me if the present FPS amount is ₹541/- with a minimum EPF ceiling of ₹6,500/-, and now that the EPF ceiling has been raised to ₹15,000/-, will the FPS amount change?

Thank you.

As per EPFO's new guidelines, the FPS/EPS ceiling is Rs. 15,000/- effective from 01-09-2014. According to this, the maximum EPS amount is Rs. 1,250/-. However, for any employees who join on or after 01-09-2014, if their basic wages exceed Rs. 15,000/-, the entire 24% amount will be remitted into their EPF account. They will not be eligible for EPS.

Regards,