Understanding PF Deductions: Is There a Limit on Wage Increases for Employees?

Sparsh2016

Dear All,

If an employee has PF deductions and their wages increase annually, what is the limit of the wage increase ceiling? Is there a wage increase ceiling, or do we have to continue deducting PF?

Glidor

There is no notional capping on ₹15,000; however, the ₹15,000 capping is not maintained, and the contribution is kept above ₹15,000 by both the employee and the employer. In this case, there is no upper limit prescribed.

Srinath Sai Ram

PF contributions have to be contributed up to Rs 15,000/- as on date (Basic/DA/VDA). There is no bar to contribute beyond Rs 15,000/- at the discretion of the employer. However, EPS contributions have to be limited to Rs 15,000/- as on date.

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