Understanding PF Deductions: How to Handle Pro-rata Salaries and Allowances?

Could you please clarify the PF-related query? One of our employees has a basic salary above Rs. 15,000, but as he joined in between the month, his basic salary on a pro-rata basis is less than Rs. 15,000. In this case, do we need to consider the other allowances for deducting his PF as per the Supreme Court judgment?

As per The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the wage ceiling amount is ₹15,000 per month. You do not need to worry about the Supreme Court judgment. If an employee's gross salary minus HRA is above ₹15,000, then you can deduct PF on ₹15,000 only.

Thanks & Regards,
Ravi Khandelwal

Hi Ravi, thanks for replying. But my query is, for example, if an employee joined on August 20 and their monthly basic salary is $17,000, when I am processing salary for 11 days of August, their basic salary on a pro-rata basis is $6,032. In this case, for PF deduction, do I need to consider the other allowances, or can I deduct the PF on $6,032?