Mandatory PF Applicability On Gross Pay Of Basic Salary

JyothisKVJ
PF applicability to be checked on which amount Gross pay or Basic Salary.
For Instance,
Basic Salary of Mr.A is 12,000,DA-2000,Additional Allowance-4000,So Gross Pay Comes to Rs.18,000, is PF mandatory to the Mr.A.
stephen_7
Yes. PF need to be covered for the employees whoever has the basic+ DA less than 15k. In your case Mr. A got basic + DA is 14k. So he is covered under the act.
JyothisKVJ
My doubt is to check manatory PF applicability we have to consider an employees wages in total or Basic salary alone (as per epf act)
Contribution is ok,which is limited to 15,000 of Basic+DA.
Can anyone share exact section of epf explaining on which amount epf applicability to be checked-
1.Basic Salary Alone
2.Basic+DA+Retaining Allowance
3.Gross Pay
sumitk.saxena
Dear sir,
Greetings for the day,
For calculation of EPF accumulation the basic+da+food conc.(if any) is reqired no any other allowance is required in case salary structure is like Basic+HRA+Cony.+Other Allowance, the component of basic will be consider and rest will not.
Thanks & Regards,
From,
Sumit Kumar Saxena
bijay_majumdar
PF Applicability on sum of basic and DA upper limit for the pf application is 15000/-However if the employees had been the member already,he continues to be the pf member irrespective of the limit as indicated.
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