Deduction of Provident Fund contribution on the allowances

MSDE
The order dated 28/02/2019 issued by Hon'ble Supreme Court on the civil appeal no. 6221 of 2011 filed by RPFC towards P.F. deduction on allowances along with the basic wages on the light that the allowance are essential part of the Basic Wages. If I pay my employee 16000.00 per month then what will be his EPF Salary Rs. 15000.00 or Rs. 16000.00?? If Rs. 16000.00 then what will be employer share on Rs 15000.00 or on Rs. 16000.00?? Experts please suggest about the matter.
umakanthan53
The salary ceiling for coverage under EPF Act,1952 is Rs.15000-00 p.m only. When the existing member/employee's monthly salary becomes more than the limit, for the purpose of contribution, it shall be restricted to Rs.15000/=only. If willing, the employee can contribute more while the employer's contribution can be on the ceiling amount only.
MSDE
The Supreme Court judgment will translate to a higher deduction for PF, which is good in terms of building the nest egg, but not so much for any one's current lifestyle since it means a lower take-home salary. But not everyone will be impacted by this development. And I think "The order will be applicable to those with a basic salary and allowances up to Rs 15,000 as PF contribution.
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