PF Employer contribution if Salary of employee is less than Rs.6500

priyamvatharajesh
Dear all,
As per the act, Employer contribution on PF has to be calculated on Minimum Wage ceiling. Minimum wage ceiling has been increased from Rs.6500 to Rs.15000. As per the Supreme court judgement, PF to be contributed on basic wages including the variable allowance.
Say for Eg, Employee Basic salary + Allowance is Rs. 5000(Whether PF to be contributed on Rs.5000 or Rs.6,500)
Employee Basic salary + Allowance is Rs. 12,000(Whether PF to be contributed on Rs.12,000 or Rs.15,000)
If u have any notification with reference to this kindly forward the same
Thanks in advance.
Regards,
P Priyamvatha
2
Dear Priyamvatha,
The PF should be calculated for the wages fixed by the employer.
For assistance in Labour compliance you can contact our expert team on 7708907021.
Regards,
KM
Sr.Consultant (Labour Law)
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute