Understanding PF Amendment: Do Employees Contribute Extra on Salaries Over 15,000?

ritikaverma001
Dear All,

As I am new to HR, I need clarification on the 4th rule of the PF amendment, which states that if an employee contributes on a salary exceeding 15,000, then they have to contribute the government's share of 1.16% as well.

In this, my doubts are:
1. If an employee's salary is 17,000 and they are contributing on 15,000 as per the limit, do they have to contribute the government share?
2. If an employee's salary is 17,000 and they are contributing on 17,000, do they have to contribute the government share on the whole amount or only on the salary exceeding 15,000, which means 2,000?

Kindly explain with the help of an example.

Please email me at [Email Removed For Privacy Reasons].

Regards,
Ritika Verma
skhr07
Hi Ritika,

Yes, the employer and employee have to contribute an additional 1.16% towards PF if the basic salary exceeds more than Rs. 15,001/- as per the notification.

PFA the notification.
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