Navigating EPF Contributions: What Happens When an Employee's Salary Exceeds Coverage?

Dear All,

I have a question about EPF contributions. One of our employees joined on 01.01.2024, and he was under EPF contribution at the time of joining. Therefore, we deducted and paid the contribution. From March onwards, that employee is out of coverage from EPF because of a salary hike. So should we pay the contribution from March? Also, please advise if there is any option in the EPF portal to mark "out of coverage," as in the ESI portal.

Regards,
Manu

Hi, Though there is a hike in PF wages, the employer should continue to contribute Rs. 18,000/-, which is the minimum amount of contribution to be made by the employer at a rate of 12% of Rs. 15,000.

There is no option under the PF portal to make an employee out of coverage. Once covered, he should be covered until his service lasts. Yes, as suggested by Lakshmi Narayan, you can restrict the contribution to 12% on Rs 15,000, i.e., Rs 1,800. Rs 18,000 in the above post may be read as Rs 1,800.