Hi, I have some questions related to the provident fund.
Question 1: EPFO Enrollment and Deduction Timing
We are planning to enroll our company with EPFO next month. Can we deduct the provident fund from this month onwards for all employees?
Question 2: Provident Fund Contribution Calculation
Is it possible to deduct the provident fund contribution in two ways for employees: (a) 12% of Rs 6500, i.e., Rs 780 for employees whose basic pay is above Rs 6500, and (b) if someone's basic salary is less than Rs 6500, can 12% be calculated on the lower basic pay?
Please let me know.
Thanks,
Naveen.
From India, Hyderabad
Acknowledge(0)
Amend(0)
3Question 1: EPFO Enrollment and Deduction Timing
We are planning to enroll our company with EPFO next month. Can we deduct the provident fund from this month onwards for all employees?
Question 2: Provident Fund Contribution Calculation
Is it possible to deduct the provident fund contribution in two ways for employees: (a) 12% of Rs 6500, i.e., Rs 780 for employees whose basic pay is above Rs 6500, and (b) if someone's basic salary is less than Rs 6500, can 12% be calculated on the lower basic pay?
Please let me know.
Thanks,
Naveen.
From India, Hyderabad
Acknowledge(0)Amend(0)
Q-1 You cannot deduct before getting your establishment registered under EPF. After registration, you can deduct the employee's contribution of the previous month with the permission of PF authorities.
Q-2 Yes, you can.
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Q-2 Yes, you can.
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Dear Varghese ji, Your answer to Q1 is absolutely right without any doubt. However, your answer to Q2, I have a question. If basic less than 6500 is below MW rate, then what?
From India, Mumbai
Acknowledge(1)
Amend(0)
From India, Mumbai
Acknowledge(1)Amend(0)
Minimum Wage and Provident Fund Compliance
If the basic salary is below the minimum wage (MW), then I do not think that the Employees' Provident Fund (EPF) Act gives any power to PF authorities to take action against the employer. They have issued a circular stating that the basic salary should not be less than the MW fixed by state governments. I doubt the legality of that. Can a circular from an executive override legislation? If wages paid are less than the MW, then the state labor department is to take action. In the case of an establishment engaging in employment for which the MW is not fixed, how will EPF authorities decide the MW?
Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]
From India, Thiruvananthapuram
Acknowledge(2)
Amend(0)
If the basic salary is below the minimum wage (MW), then I do not think that the Employees' Provident Fund (EPF) Act gives any power to PF authorities to take action against the employer. They have issued a circular stating that the basic salary should not be less than the MW fixed by state governments. I doubt the legality of that. Can a circular from an executive override legislation? If wages paid are less than the MW, then the state labor department is to take action. In the case of an establishment engaging in employment for which the MW is not fixed, how will EPF authorities decide the MW?
Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]
From India, Thiruvananthapuram
Acknowledge(2)Amend(0)
First of all you have to take coverage from the PF Authorities before deducting the PF contribution. The PF deduction will be 12% on the salary subject to ceiling salary of Rs.6500.
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
Both Keshav Korgaonkar and Verghese Mathew are correct in their respective contentions. An employer cannot pay less than minimum wages, while P.F. Authorities cannot dictate to the employer how much the quantum of wages payable to the employees should be, especially in view of the circular that was put on hold following the Surya Roshini case. Hope this clarifies the position.
Regards,
B. Saikumar
In-House HR & IR Advisor
From India, Mumbai
Acknowledge(1)Amend(0)
Regards,
B. Saikumar
In-House HR & IR Advisor
From India, Mumbai
Acknowledge(1)Amend(0)
Answer to Your Questions
1. If you have not registered under EPF and your strength is above 20 employees, then you have to start deducting money from the date of the employee's joining. When you apply for registration, you accumulate all the deducted amounts at 12% from employees, and you have to add the employer contribution along with EDLI and other charges at 13.61%. You have to purchase the DD for this amount in favor of the EPF commissioner and submit this along with your registration form. Also, attach a list of employees along with PF contribution details.
Once you get the registration code, you have to show the previously deducted amount as Surplus or Arrears amount and have to contribute, but PF deduction is compulsory if your organization's strength is more than 20.
2. PF deduction has to be made on Basic and DA.
It's up to the management whether you pay PF on the full basic amount even if it is more than Rs. 6500 or you can fix the ceiling at Rs. 6500. But ensure that the PF wage (Basic + DA) is equal to or more than the minimum wages. Furthermore, if your minimum wages are more than Rs. 6500, then you fix the PF wage ceiling at Rs. 6500.
Please refer to the concerned state's PF rules for further clarifications.
Please correct me if I'm wrong in any of the above statements.
With Best Regards,
Shreyas
Ph: [Phone Number Removed For Privacy Reasons]
From India, Bengaluru
Acknowledge(2)Amend(0)
1. If you have not registered under EPF and your strength is above 20 employees, then you have to start deducting money from the date of the employee's joining. When you apply for registration, you accumulate all the deducted amounts at 12% from employees, and you have to add the employer contribution along with EDLI and other charges at 13.61%. You have to purchase the DD for this amount in favor of the EPF commissioner and submit this along with your registration form. Also, attach a list of employees along with PF contribution details.
Once you get the registration code, you have to show the previously deducted amount as Surplus or Arrears amount and have to contribute, but PF deduction is compulsory if your organization's strength is more than 20.
2. PF deduction has to be made on Basic and DA.
It's up to the management whether you pay PF on the full basic amount even if it is more than Rs. 6500 or you can fix the ceiling at Rs. 6500. But ensure that the PF wage (Basic + DA) is equal to or more than the minimum wages. Furthermore, if your minimum wages are more than Rs. 6500, then you fix the PF wage ceiling at Rs. 6500.
Please refer to the concerned state's PF rules for further clarifications.
Please correct me if I'm wrong in any of the above statements.
With Best Regards,
Shreyas
Ph: [Phone Number Removed For Privacy Reasons]
From India, Bengaluru
Acknowledge(2)Amend(0)
I would like to share my views with you on your query. First of all, you need a minimum of 20 employees to enroll with EPFO. If you have 20 employees, then you are liable to deduct the EPF amount at 12% because even if you apply late, you will still be liable from the first day when the number of employees reaches 20.
Regards
From India, New Delhi
Acknowledge(0)Amend(0)
Regards
From India, New Delhi
Acknowledge(0)Amend(0)
Dear friends,
Here is the latest circular from the CPFC regarding restricting the salary for PF contribution at 12% to Rs. 6,500/-.
Companies CAP Provident Fund (PF) Contribution to Rs. 6500
The Provident Fund Office has allowed companies to cap their per-month Provident contribution to employees at Rs. 6,500. At present, companies contribute an amount equal to at least 12 percent of an employee’s basic salary towards his/her PF. Now, when an employer is deducting and depositing Employees’ Provident Fund contributions upon more than the prescribed salary, they can reduce it to Rs. 6,500 per month. In that event, section 12 of the Employees’ Provident Funds & Miscellaneous Provisions Act, which provides a bar for not reducing wages, will not be attracted.
Full Text of the Circular is as follows:
EMPLOYEES PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR AND EMPLOYMENT, GOVERNMENT OF INDIA, DELHI
Ref. No. LC(637)2009/Vol.I/203- Dated: 27.05.2014
Subject: Filing of Review Petition against Judgement of Hon’ble Supreme Court of India in SIP No. 1205/2009 in the Matter of Marathwada Gramin Bank Employees Union Vs. Management of Marathwada Gramin Bank – Regarding.
Reference: This office letter No. LC-2(637)2009/MH/12780 dated 08.10.2013
Please refer to the above-cited letter wherein views on the issue of filing a Review Petition/implementation of the order dated 09.09.2011 of the Hon’ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Karamchari Sangathan & Ors. Vs. Management of Marathwada Gramin Bank, were called for.
The views expressed by the Zonal Addl. Central Provident Fund Commissioners as to whether a review petition needs to be filed or not have been examined at Head Office. After analyzing the pros and cons of the issue, the Competent Authority felt that there is no point in going for a review against the said judgement of the Hon’ble Supreme Court of India.
All the Regional Provident Fund Commissioners-In-charge of Regional/Sub-Regional Offices are, therefore, directed not to force employers to contribute over and above the statutory wage ceiling in respect of their employees. However, the option is available for the employees to contribute beyond the statutory wage ceiling if they so desire, subject to the conditions enumerated under para 26(6) of the Employees’ Provident Funds Scheme, 1952.
Yours faithfully,
(P.K. UDGATA)
Addl. Central Provident Fund Commissioner (Compliance).
----------------- read from -
Companies CAP Provident Fund (PF) contribution to Rs. 6500
-------------------------
From India, Bangalore
Acknowledge(1)Amend(0)
Here is the latest circular from the CPFC regarding restricting the salary for PF contribution at 12% to Rs. 6,500/-.
Companies CAP Provident Fund (PF) Contribution to Rs. 6500
The Provident Fund Office has allowed companies to cap their per-month Provident contribution to employees at Rs. 6,500. At present, companies contribute an amount equal to at least 12 percent of an employee’s basic salary towards his/her PF. Now, when an employer is deducting and depositing Employees’ Provident Fund contributions upon more than the prescribed salary, they can reduce it to Rs. 6,500 per month. In that event, section 12 of the Employees’ Provident Funds & Miscellaneous Provisions Act, which provides a bar for not reducing wages, will not be attracted.
Full Text of the Circular is as follows:
EMPLOYEES PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR AND EMPLOYMENT, GOVERNMENT OF INDIA, DELHI
Ref. No. LC(637)2009/Vol.I/203- Dated: 27.05.2014
Subject: Filing of Review Petition against Judgement of Hon’ble Supreme Court of India in SIP No. 1205/2009 in the Matter of Marathwada Gramin Bank Employees Union Vs. Management of Marathwada Gramin Bank – Regarding.
Reference: This office letter No. LC-2(637)2009/MH/12780 dated 08.10.2013
Please refer to the above-cited letter wherein views on the issue of filing a Review Petition/implementation of the order dated 09.09.2011 of the Hon’ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Karamchari Sangathan & Ors. Vs. Management of Marathwada Gramin Bank, were called for.
The views expressed by the Zonal Addl. Central Provident Fund Commissioners as to whether a review petition needs to be filed or not have been examined at Head Office. After analyzing the pros and cons of the issue, the Competent Authority felt that there is no point in going for a review against the said judgement of the Hon’ble Supreme Court of India.
All the Regional Provident Fund Commissioners-In-charge of Regional/Sub-Regional Offices are, therefore, directed not to force employers to contribute over and above the statutory wage ceiling in respect of their employees. However, the option is available for the employees to contribute beyond the statutory wage ceiling if they so desire, subject to the conditions enumerated under para 26(6) of the Employees’ Provident Funds Scheme, 1952.
Yours faithfully,
(P.K. UDGATA)
Addl. Central Provident Fund Commissioner (Compliance).
----------------- read from -
Companies CAP Provident Fund (PF) contribution to Rs. 6500
-------------------------
From India, Bangalore
Acknowledge(1)Amend(0)
Dear Kumar ji, Thank you for providing the latest circular by EPFO in this forum. Sir, I have not understood your below given quote. Can you please elaborate or explain it?
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you for the information, guys. I have one more question. The company where I am working is deducting both employer and employee contributions at 12% on $6500. If an employee wants to contribute 12% of their basic pay, would that be accepted? Furthermore, if the employer wants to contribute based on the basic pay in the future, would that be possible?
Thank you,
Naveen
From India, Hyderabad
Acknowledge(0)Amend(0)
Thank you,
Naveen
From India, Hyderabad
Acknowledge(0)Amend(0)
It's intriguing how your employer could deduct both the employee's subscription and the employer's contribution from the employees' salary. This practice is illegal and punishable. Deducting 12% on Rs. 6500 (limited to 6500) or more is acceptable, but it should be calculated based on both Basic Pay and Dearness Allowance (DA). Many companies also include and contribute based on overtime (OT) salary, which is legitimate.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
-------------------
Clarification on Section 12 of the Employees’ Provident Funds Act
Dear Mr. Keshav, Please read the remarks together with Sec.12: reproduced here under:
Section 12 in The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
“1[12. Employer not to reduce wages, etc.—No employer in relation to 2[an establishment] to which any 3[Scheme or the Insurance Scheme] applies shall, by reason only of his liability for the payment of any contribution to 4[the Fund or the Insurance Fund] or any charges under this Act or the 3[Scheme or the Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to whom the 3[Scheme or the Insurance Scheme] applies or the total quantum of benefits in the nature of old age pension, gratuity 5[, provident fund or life insurance] to which the employee is entitled under the terms of his employment, express or implied.]”
In this background, the present notification clarifies that:
The Provident Fund Office has allowed companies to cap their per-month Provident Fund contribution to employees at Rs. 6,500. At present, companies contribute an amount equal to at least 12 percent of an employee’s basic salary towards his/her PF. Now, when an employer is deducting and depositing Employees’ Provident Fund contributions upon more than the prescribed salary, he can reduce it to Rs. 6,500 per month, and in that event, section 12 of the Employees’ Provident Funds & Miscellaneous Provisions Act providing bar for not to reduce wages will not be attracted.
In other words, for example, an employee drawing Basic + DA say Rs. 10,000 and he is willing to contribute 12% on the entire 10,000 without restricting to 6,500, since when a willing employee can contribute @ 12% on salary not limited to Rs. 6,500, whereas the employer can limit/cap the salary only up to Rs. 6,500/- in which case the employer will not be found at fault as per Sec.12 as above and it wouldn’t be construed to mean the employer “reducing the wages.” This is nothing new now; this is an already existing proviso which is only amplified quoting the Circular now issued.
With regards,
From India, Bangalore
Acknowledge(0)Amend(0)
Clarification on Section 12 of the Employees’ Provident Funds Act
Dear Mr. Keshav, Please read the remarks together with Sec.12: reproduced here under:
Section 12 in The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
“1[12. Employer not to reduce wages, etc.—No employer in relation to 2[an establishment] to which any 3[Scheme or the Insurance Scheme] applies shall, by reason only of his liability for the payment of any contribution to 4[the Fund or the Insurance Fund] or any charges under this Act or the 3[Scheme or the Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to whom the 3[Scheme or the Insurance Scheme] applies or the total quantum of benefits in the nature of old age pension, gratuity 5[, provident fund or life insurance] to which the employee is entitled under the terms of his employment, express or implied.]”
In this background, the present notification clarifies that:
The Provident Fund Office has allowed companies to cap their per-month Provident Fund contribution to employees at Rs. 6,500. At present, companies contribute an amount equal to at least 12 percent of an employee’s basic salary towards his/her PF. Now, when an employer is deducting and depositing Employees’ Provident Fund contributions upon more than the prescribed salary, he can reduce it to Rs. 6,500 per month, and in that event, section 12 of the Employees’ Provident Funds & Miscellaneous Provisions Act providing bar for not to reduce wages will not be attracted.
In other words, for example, an employee drawing Basic + DA say Rs. 10,000 and he is willing to contribute 12% on the entire 10,000 without restricting to 6,500, since when a willing employee can contribute @ 12% on salary not limited to Rs. 6,500, whereas the employer can limit/cap the salary only up to Rs. 6,500/- in which case the employer will not be found at fault as per Sec.12 as above and it wouldn’t be construed to mean the employer “reducing the wages.” This is nothing new now; this is an already existing proviso which is only amplified quoting the Circular now issued.
With regards,
From India, Bangalore
Acknowledge(0)Amend(0)
Thank you very much for your response. I have gone through Section 12, the Supreme Court judgment in Marathwada Gramin Bank Employees Union, a circular by EPFO dated 27.05.2014, and also your posts in this thread very carefully.
I am confused about your comments which say, "...in that event, section 12 of the Employees’ Provident Funds & Miscellaneous Provisions Act providing bar for not to reduce wages will not be attracted," and therefore I raised the issue. Even your explanation as above is not clearing the confusion in my mind.
Here, with due respect to you, Sir, I would like to ask you, do you mean to say that with this circular one can reduce the wages of any employee? At least, to my understanding, you are saying that one can now reduce the wages of any employee.
I also raised one more query on one of your posts in this thread, which was deleted by the site administrator for reasons unknown to me. You said in one of the above posts that many companies include and contribute (PF) on OT salary also, and it is legitimate. I would like to know, on what basis do you say this?
I am raising these issues only with the intention to correct ourselves.
From India, Mumbai
Acknowledge(0)Amend(0)
I am confused about your comments which say, "...in that event, section 12 of the Employees’ Provident Funds & Miscellaneous Provisions Act providing bar for not to reduce wages will not be attracted," and therefore I raised the issue. Even your explanation as above is not clearing the confusion in my mind.
Here, with due respect to you, Sir, I would like to ask you, do you mean to say that with this circular one can reduce the wages of any employee? At least, to my understanding, you are saying that one can now reduce the wages of any employee.
I also raised one more query on one of your posts in this thread, which was deleted by the site administrator for reasons unknown to me. You said in one of the above posts that many companies include and contribute (PF) on OT salary also, and it is legitimate. I would like to know, on what basis do you say this?
I am raising these issues only with the intention to correct ourselves.
From India, Mumbai
Acknowledge(0)Amend(0)
Supreme Court Judgment on Provident Fund Contributions
The present circular dated 27/05/2014 is a byproduct of the Honorable Supreme Court judgment in a case titled "Marathwada Gramin Bank Employees Union V/s Marathwada Gramin Bank Management."
If you have carefully read the judgment, it is very easy to understand. In the cited case, the employer established their PF trust after obtaining an exemption under section 17 of the Act, and they began contributing based on the actual basic salary, such as 10K or 20K. However, after a few years, due to a significant financial crisis, the management's request to withdraw the exemption was granted, and they started complying with RPFC. Subsequently, the management reduced contributions from the actual salary to the statutory limit of Rs 6500. Employees were informed through a written notice, which was opposed by both the employee union and the PF Department citing section 12 of the EPF & MP Act, which prohibits a reduction in benefits that employees were receiving.
The Supreme Court, in the aforementioned judgment, ruled that an employer can reduce PF contributions from the actual basic to the statutory wage ceiling of Rs 6500. Employers are not legally obligated to contribute based on the actual basic wages of Rs 10K/20K or any other amount; they are only required to contribute based on Rs 6500. The PF Department cannot compel employers to contribute based on actual wages. However, an employee can contribute more than the statutory wage ceiling, subject to the conditions mentioned in para 26(6).
The PF Department was contemplating filing a review petition against the Supreme Court's judgment. Still, through the mentioned circular, they have abandoned the idea of pursuing a review petition and have instructed their officers to implement the judgment without pressuring employers to contribute based on higher wages if they are unwilling to do so.
In cases where employers seek better benefits, they may choose to continue contributing based on actual wages, subject to the conditions of a joint request under para 26(6) of the PF Scheme.
Only the last paragraph of the circular is relevant; nothing else.
Regards,
Sanjay Kumar
From India, Delhi
Acknowledge(3)
Amend(0)
The present circular dated 27/05/2014 is a byproduct of the Honorable Supreme Court judgment in a case titled "Marathwada Gramin Bank Employees Union V/s Marathwada Gramin Bank Management."
If you have carefully read the judgment, it is very easy to understand. In the cited case, the employer established their PF trust after obtaining an exemption under section 17 of the Act, and they began contributing based on the actual basic salary, such as 10K or 20K. However, after a few years, due to a significant financial crisis, the management's request to withdraw the exemption was granted, and they started complying with RPFC. Subsequently, the management reduced contributions from the actual salary to the statutory limit of Rs 6500. Employees were informed through a written notice, which was opposed by both the employee union and the PF Department citing section 12 of the EPF & MP Act, which prohibits a reduction in benefits that employees were receiving.
The Supreme Court, in the aforementioned judgment, ruled that an employer can reduce PF contributions from the actual basic to the statutory wage ceiling of Rs 6500. Employers are not legally obligated to contribute based on the actual basic wages of Rs 10K/20K or any other amount; they are only required to contribute based on Rs 6500. The PF Department cannot compel employers to contribute based on actual wages. However, an employee can contribute more than the statutory wage ceiling, subject to the conditions mentioned in para 26(6).
The PF Department was contemplating filing a review petition against the Supreme Court's judgment. Still, through the mentioned circular, they have abandoned the idea of pursuing a review petition and have instructed their officers to implement the judgment without pressuring employers to contribute based on higher wages if they are unwilling to do so.
In cases where employers seek better benefits, they may choose to continue contributing based on actual wages, subject to the conditions of a joint request under para 26(6) of the PF Scheme.
Only the last paragraph of the circular is relevant; nothing else.
Regards,
Sanjay Kumar
From India, Delhi
Acknowledge(3)Amend(0)
Clarification on Provident Fund Contribution
With due respect, Sir, I would like to ask: do you mean to say that with this circular, one can reduce the wages of any employee? At least, to my understanding, you are saying that one can now reduce the wages of any employee.
Attribution: https://www.citehr.com/495426-provid...#ixzz33eExCHml
Pardon me, Mr. Keshav, I didn't mean that the employer can reduce the gross salary of the actual entitlement and take-home pay, which has to be accounted for in the payroll. It really means, in effect, to reckon the proforma salary at Rs. 6500 for the purpose of calculating EPF at 12% (to the maximum of Rs. 6,500/-). In other words, this will not affect the payroll emoluments of the employee concerned in any way. Moreover, this practice is nothing new; I think every employer follows this as the employer is not bound to contribute for more than the salary at Rs. 6500/-. At the same time, it's left to the discretion of the employers whether to limit or not to limit at Rs. 6500/-. We are one of many such employers who liberally contribute even for more than Rs. 6500/-.
Secondly, we in our company have long been contributing PF on the OT wages as well. In fact, a group of our unions won a case at the Tribunal on this, and thereafter we have reckoned OT wages also for the purpose of calculating the company's contribution to EPF. I'll try to trace the relevant orders/case law and post here ASAP.
Regards
From India, Bangalore
Acknowledge(0)Amend(0)
With due respect, Sir, I would like to ask: do you mean to say that with this circular, one can reduce the wages of any employee? At least, to my understanding, you are saying that one can now reduce the wages of any employee.
Attribution: https://www.citehr.com/495426-provid...#ixzz33eExCHml
Pardon me, Mr. Keshav, I didn't mean that the employer can reduce the gross salary of the actual entitlement and take-home pay, which has to be accounted for in the payroll. It really means, in effect, to reckon the proforma salary at Rs. 6500 for the purpose of calculating EPF at 12% (to the maximum of Rs. 6,500/-). In other words, this will not affect the payroll emoluments of the employee concerned in any way. Moreover, this practice is nothing new; I think every employer follows this as the employer is not bound to contribute for more than the salary at Rs. 6500/-. At the same time, it's left to the discretion of the employers whether to limit or not to limit at Rs. 6500/-. We are one of many such employers who liberally contribute even for more than Rs. 6500/-.
Secondly, we in our company have long been contributing PF on the OT wages as well. In fact, a group of our unions won a case at the Tribunal on this, and thereafter we have reckoned OT wages also for the purpose of calculating the company's contribution to EPF. I'll try to trace the relevant orders/case law and post here ASAP.
Regards
From India, Bangalore
Acknowledge(0)Amend(0)
What all the seniors suggested is absolutely correct. Coming to the wage ceiling of ₹6,500/-, the employee should contribute 12% of the whole basic salary regardless of the ceiling, and the employer can contribute 8.33% to the pension fund on ₹6,500 or less, depending on their basic wage.
When it comes to the contributions, you can deduct both employer and employee contributions from the employee CTC as you have that facility.
Regards,
Ravichandra
From India, Hyderabad
Acknowledge(0)Amend(0)
When it comes to the contributions, you can deduct both employer and employee contributions from the employee CTC as you have that facility.
Regards,
Ravichandra
From India, Hyderabad
Acknowledge(0)Amend(0)
EPF Contribution and Minimum Wages
The wages for EPF contribution should not be less than the prescribed minimum wages under the MW Act 1948. There is a very clear ruling of the Supreme Court in this regard.
For all statutory payment/contribution calculations, the wages must match the prescribed minimum wages.
Regards
From India, Pune
Acknowledge(0)Amend(0)
The wages for EPF contribution should not be less than the prescribed minimum wages under the MW Act 1948. There is a very clear ruling of the Supreme Court in this regard.
For all statutory payment/contribution calculations, the wages must match the prescribed minimum wages.
Regards
From India, Pune
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx