Employer Contributions: What Changes When Your Salary Tops $15,000?

Hello, I have a query about what happens to the quantum of the employer's contribution when the employee's salary exceeds $15,000.

And please provide references as well.

Simple,

If any employee crosses 15000/- basic salary, then:

15000 * 12% = 1800

15000 * 8.33% = 1250

15000 * 3.67% = 550.

Hi, Meera.

Can you provide any references? I'm referring to paragraph 29 of the EPF scheme, which states that the minimum mandatory contribution by the employer is 10% or 12% of basic salary + DA + RA. I'm feeling a bit confused.

Even if the wage exceeds Rs. 15,000/- per month, the employer's contribution can be limited to Rs. 15,000/- while the employee has the option to contribute based on a higher wage, with the approval of the PF authority.

B. Saikumar HR & Labour Relations Adviser

Dear Manish,

In your case, the management is willing to pay the contributions for the higher amount that the employee received; they have to pay the full contribution. If the management is not willing to pay a higher contribution, they will pay 13% towards the employer contribution for Rs. 15,000/- only.

P. Karunakaran