Dear Colleagues, Hope you are doing well! Please help me with your valuable advice on the matter below:
Q1. PF Dues Based on Rs. 15,000 Limit
The query is for those employers who treat the PF dues based on the Rs. 15,000 limit on EPF wages and not the entire amount. In the case of such an employer, if an employee has PF wages defined as, for example, Rs. 50,000 per month and is on Loss of Pay for 15 days out of 30 in April, what is the PF deduction and contribution?
- Is it based on the fact that since the employee is paid Rs. 25,000 for that month (15/30 x 50,000), the PF should be 12% of Rs. 15,000 (lower of Rs. 15,000 and Rs. 25,000), i.e., Rs. 1,800, OR
- Should it be computed as PF wages being Rs. 15,000 (lower of Rs. 50,000 and Rs. 15,000) and PF wages pro-rated as per LOP days, which is 15/30 of Rs. 1,800, i.e., Rs. 900?
Q2. PF Dues Based on Entire Amount
The query is for those employers who treat the PF dues based on the entire amount. In the case of such an employer, if an employee has PF wages defined as, for example, Rs. 50,000 per month and is on Loss of Pay for 15 days out of 30 in April, what should be the EPF wages? Rs. 50,000, Rs. 25,000, or Rs. 15,000?
Thank you for your assistance.
Best regards, [Your Name]