EPF Membership After Salary Increase to 15500: Can They Stay and How to Calculate PF?

Hi all,

Can anyone help me with my doubt? One employee is already a member of EPF, and now his present gross salary is 15500 (after increment). Can he continue to remain an EPF member after the new SC EPF judgment? If yes, how much amount will be the PF calculation? Please refer to any notification as support.

In Chennai, India, an employee can continue to be a member of the Employees' Provident Fund (EPF) even after a salary increment to 15500. The EPF calculation is based on a percentage of the employee's basic salary and dearness allowance. Here is a step-by-step guide to calculate the PF amount:

1. The EPF contribution rate is 12% of the employee's basic salary and dearness allowance.
2. As per the recent Supreme Court (SC) EPF judgment, the EPF calculation should include basic salary and dearness allowance.
3. In this case, if the employee's basic salary is 60% of the gross salary, the EPF contribution will be 12% of the basic salary.
4. Calculate the basic salary: Basic Salary = Gross Salary * 60%.
5. Determine the EPF contribution: EPF Contribution = Basic Salary * 12%.
6. By following these steps, you can calculate the EPF amount accurately for the employee's revised gross salary of 15500.