Employer Contribution Of EPF Basic Exceeds6500/-by Increment

arunpalta
Respected Seniors
I need your help to settle whether EPF contribution of Employer will continue when the salary of an employee exceeds Rs. 6500 (basic) by virtue of increment given to him . IS EMPLOYER IS LIABLE TO CONTRIBUTE ITS SHARE. Pl. enlightned me with your knowledge and experience. Shall be greatful.
Regards.
ARUN PALTA
agencyassist
If you have paid EPF contribution for an employee and if his salary exceeds 6500 after few months by means of increment it doesn't give the option of stopping his EPF contribution. You need to make the EPF contribution for that employee as long as he stays with your company. It doesn't means that you should make EPF contribution for the full salary. It's enough if you make the contribution for Rs.6500/- alone.
Regards,
Michael Joseph
suyoglabourconsultants
Dear Arun'
Yes, Michael is perfectly on the point. By virtue of the provision
under EPF Act covered employee retain his membership even if his salary exceeds 6500/-and shud not in any condition be an excluded employee. Option is only employer are allowed to stop his contribution upto 6500/-till his service ended to that company.
Regards,
KIRAN KALE
rajmore22
Hi Dear
what about if at the time of appointment the employees basic is paid above the 6500/- do we have to deduct the PF.
we pay as consolidated salary of Rs 15000/- how to work on this. ?
Thanks
Raj
suyoglabourconsultants
Dear Raj,
If an employee at the time of appointment getting basic salary more than 6500; then he can be excluded from the ambit of the act,
Secondly, if as per the policy of management if such an employee is offered PF then :
1.Employee contribution can be deducted on total salary fix in basic, V.D.A. OR D.A. FIX D.A. etc. but not on allowances. and further employer contribution, if permitted, can be remitted on the same,
2.Employee contribution on as stated above at 1; but employer contribution be restricted to 6500/-
3.Both contribution can be on 6500/-
Like this u can choose one option from 3 above,Pls. note that if employee is getting consolidated salary then PF shud go on it as per option 1 & 2 so far employee contribution is concern.
Regards,
KIRAN KALE
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute