Can EPF Contributions Be Capped at 15,000 When Delhi's Minimum Wage Is 18,797?

Dear Team, I am working in a facilities management company. One of the clients wants to set a ceiling on EPF contribution at 15,000/-, but Delhi's minimum wage for skilled salary is 18,797. Is it possible to cap the EPF contribution at 15,000/- based on basic salary? Thank you.

Salary Ceiling on PF

The salary ceiling on PF is set to be increased. A proposal to raise the salary ceiling on PF from Rs. 15,000/- to Rs. 21,000/- is currently under active consideration by the government. The final decision of the government is awaited and expected to be known at the earliest.

EPF Deduction Ceiling

The ceiling maximum limit for EPF deduction of employer contribution is 15k.

Please let me know if you need further assistance.

You can fix the contribution limited to the ceiling amount. For any amount in excess of the ceiling (Rs 3797 in this case), no PF is deducted, and the employer also need not make any contribution. However, it is also possible that the employee contributes based on the actual salary, but the employer contribution is limited to the ceiling amount.

The EPF limit is 15,000, and it does not conflict with the Delhi state minimum wages. Even if an employee receives a salary of 1 lakh, the EPF limit of 15,000 can still be maintained.