Understanding EPF Contributions: How Should Employers Handle PF for NCP Days?

Clarification sought, an employee drawing a basic salary of Rs. 30K per month but PF benefit restricted to Rs. 15K is absent from duties for 15 days, and his basic salary is calculated accordingly as 15K. In ECR, the employer shows 15 days NCP. Is the employer liable to pay PF on Rs. 7,500/- or Rs. 15,000/- as the department, while settling the pension claim, fixes pension deducting NCP days? Please share your views or supporting documents if available. Thanks.

Different Approaches to EPF Deductions

Few establishments deduct from the full basic salary drawn up to Rs. 15,000/- even if the Loss of Pay (LOP) is for 15 days. Others deduct EPF by considering the maximum benefit of Rs. 1,800/- multiplied by the number of days for which the basic salary is paid and dividing by the number of days of that particular month, even when the basic salary, after loss of pay, amounts to Rs. 10,000-15,000. More views are sought.