Dear Members, please advise on the impact of the government's decision to increase the EPFO Wage Ceiling from Rs. 6,500 to Rs. 15,000. Will it mean that if an employee's Basic+DA amounts to Rs. 20,000, then the mandatory PF Employee/Employer contribution should now be Rs. 1,800 (12% of Rs. 15,000) instead of Rs. 780 (12% of Rs. 6,500)?
Thank you.
From India, Mumbai
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2Thank you.
From India, Mumbai
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Dear Members, please advise on the impact of the government's decision to increase the EPFO Wage Ceiling from Rs. 6,500 to Rs. 15,000. Will it mean that if an employee's Basic+DA amounts to Rs. 20,000, then the mandatory PF Employee/Employer contribution should now be Rs. 1,800 (12% of Rs. 15,000) instead of Rs. 780 (12% of Rs. 6,500)?
Ceiling Hike of EPF
The ceiling hike of EPF is a recommendation of the Expert Committee, which submitted the report to the Parliament on 5th August 2011. Thereafter, the Ministers in the Labour Ministry, Govt. of India, are frequently making announcements regarding the hike. Hence, don't have much expectation on it.
If the ceiling salary is hiked to 15,000, the contribution will go up with respect to the salary of the individuals.
Regards,
Abbas.P.S
From India, Bangalore
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Ceiling Hike of EPF
The ceiling hike of EPF is a recommendation of the Expert Committee, which submitted the report to the Parliament on 5th August 2011. Thereafter, the Ministers in the Labour Ministry, Govt. of India, are frequently making announcements regarding the hike. Hence, don't have much expectation on it.
If the ceiling salary is hiked to 15,000, the contribution will go up with respect to the salary of the individuals.
Regards,
Abbas.P.S
From India, Bangalore
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First of all, it is just recommended and not implemented. Yes, once it is officially published in the Gazette, then the minimum contribution for people drawing more than 15,000 Basic + DA will be Rs. 1,800.
From India, Mumbai
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From India, Mumbai
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As per my knowledge, this increased ceiling is still under consideration and is a hot issue for EPFO. It is still uncertain whether this decision will be documented or not. A similar case of ESIC also came to my attention (from Rs. 15,000 to Rs. 25,000) but is still not implemented due to non-approval from Parliament.
Regards,
Manish Gupta
From India, Ghaziabad
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Regards,
Manish Gupta
From India, Ghaziabad
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Hi All, Sorry, I fell sick for the past week, so I was not able to follow up on the post at regular time intervals. As clarified by Mr. Gobarchand, it is yet to be implemented officially but has been discussed in several articles regarding the Ministerial announcement of deciding on increasing the wage ceiling. It has been a hot topic of discussion in the EPFO office for the past few months. I regret any miscommunication that may have occurred in my query. I recently read an article with the same title that raised a doubt in me, prompting me to post it here for discussion.
Thanks,
GK.
From India, Mumbai
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Thanks,
GK.
From India, Mumbai
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Increase In Wage Ceiling And Death Benefits For Dependents For Schemes Under Haryana LWF.pdf