Hello,
As per the PF Act, the maximum basic salary entitlement for PF is Rs. 6,500. My question is, if an employee's salary exceeds this limit after receiving an increment, are they still entitled to make Employee PF Contributions? If yes, is the contribution fixed at Rs. 780, or can the company exclude such employees from contributing?
From India, Mumbai
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As per the PF Act, the maximum basic salary entitlement for PF is Rs. 6,500. My question is, if an employee's salary exceeds this limit after receiving an increment, are they still entitled to make Employee PF Contributions? If yes, is the contribution fixed at Rs. 780, or can the company exclude such employees from contributing?
From India, Mumbai
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2
Thank you very much for the valuable answer. I recently visited the EPF India site but could not find any information related to the increased basic limits for PF contribution in Maharashtra State. Kindly send me the circular if it is available with you.
From India, Mumbai
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From India, Mumbai
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Till date, the ceiling salary limit of EPF is Rs. 6500. There is no such amendment to hike the limit to Rs. 10,000.
The members once enrolled in PF will continue until the end of service. The statutory obligation is a contribution up to the ceiling salary. However, both employees and employers can contribute at higher salaries if they wish.
Abbas.P.S
From India, Bangalore
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The members once enrolled in PF will continue until the end of service. The statutory obligation is a contribution up to the ceiling salary. However, both employees and employers can contribute at higher salaries if they wish.
Abbas.P.S
From India, Bangalore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx