Confused About EPF Ceiling? Why Consider ₹16,000 When PF Wages Are Capped at ₹15,000?

Hello, I need clarification on the PF wages limit, which is ₹15,000 per month at present. If a member's basic wages plus DA exceed ₹15,000, for example, ₹16,000 per month, and in November, the member receives wages for 29 days, the calculation would be: Basic wages earned = ₹16,000/30 * 29 days = ₹15,467. However, the PF wages ceiling is ₹15,000 per month, so we calculate PF wages based on this ceiling: ₹15,000/30 * 29 = ₹14,500 * 12% = ₹1,740 as displayed on the portal.

Someone suggested paying contributions based on ₹15,000 in the above cases. My query is: if PF wages are capped at ₹15,000, why do we need to consider ₹16,000 basic wages plus DA, which exceeds ₹15,000 as per EPFO?

Please suggest.

Regards, Dwarika

Hi, could you please specify whether the employee is on LWP (Loss Without Pay) for one day? If that is the case, there will be no issue in applying the formula 15000/30*29.

Regards, Kiran Raj

Yes, sir, it was LWP. Thank you very much.

Regards, Dwarika P. Nautiyal