Confused About EPF Contributions? How to Enter Wages for Employees Earning Over Rs. 15,000

Dear Seniors,

We pay only a maximum of Rs. 1800 as an employer contribution to the employee's EPF account, even if the employee's basic salary is more than Rs. 15,000. Kindly guide me in such a situation while entering the details of a new employee in the EPF portal. Which salary of that employee should we enter in the "Monthly EPF Wages" field of the EPF portal—his actual basic salary or Rs. 15,000 if the actual basic pay of the employee is more than Rs. 15,000?

Thank you

As per the EPF Act, PF is to be paid on the actual basic salary of the employee. Since it is a beneficial legislation, the advantage is to be given to the employee. The restriction of Rs. 15,000/- is only for EPS, and that too has been removed now due to the Supreme Court decision on higher wages. EPFO, during their Annual Inspection, is strictly checking on the basic salary of the employee, and the contribution is restricted to Rs. 15,000/-. They are raising the arrears bill, and PF is to be paid on that amount. Therefore, it would be good for the employer to pay PF on the actual basic salary and not just on Rs. 15,000/-.