Confused About EPF Deductions: Does the Rs 15,000 Limit Apply to Basic or Gross Salary?

I am working in a manpower consultancy as a Junior Manager and drawing a consolidated salary of Rs 20,000/-. Till date, they have not issued me any salary slip and never disclosed the salary structure. Therefore, I have no idea about my basic salary, etc. I just want to know, as per the latest rules of PF contribution, is it mandatory for my organization to deduct PF from my salary or not?

Revised EPF Rule Inquiry

It is mentioned in the revised EPF rule (in effect from September 2014) that EPF is mandatory for employees whose salary is less than Rs 15,000/-. Please tell me, does this Rs 15,000/- refer to the basic salary or gross salary?

Dear Mr. Rupesh Akhouri,

Generally, PF is contributed based on basic pay plus DA. However, when it comes to a consolidated payment, how is it possible to bifurcate it into different components?

Abbas P.S

Dear Rupesh,

The provisions of the EPF and MP Act, 1952 are applicable to all employees whose basic salary is up to Rs. 15,000 per month (as per the latest notification). If you are drawing an equal or lower amount than the maximum ceiling as a basic salary, you will be considered a member of the EPF Scheme. Otherwise, you will be treated as an exempted employee. In that situation, management has to obtain Form No. 11 (New) from you.

Regards,
R B Rao
Advocate

Dear Rupesh,

An employee whose basic, DA, and food allowance, if any, are within Rs. 15,000.00 falls under the purview of EPF. In your case, you are drawing a consolidated salary of Rs. 20,000.00. I would like to know whether you are covered under ESIC for further suggestions.