A contractual employee who was drawing a salary at the appointment prior to 01/09/2014 was earning more than Rs 6,500 per month. He was not covered under the PF Act and Employees' Pension Scheme. There has been an amendment in the PF Act and EPS. Will he be covered now? His salary is more than 6,500 and less than 15,000. Your expert opinion, please.
From India, Chandigarh
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7From India, Chandigarh
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Recent Amendment on 01/09/2014
The ceiling limit was increased from 6,500.00 to 15,000.00. If you provide Basic + DA to your employees, you should contribute to the PF. Here's an example:
Old Ceiling Limit
- Ceiling Limit: 6,500.00 (Pension fund 8.33% - 541.00)
New Ceiling Limit (Effective from 01/09/2014)
- Ceiling Limit: 15,000.00 (Pension fund 8.33% - 1,250.00)
For your basic above the old ceiling limit and below the new ceiling limit, you should pay based on the actual basic. It is not mandatory to pay your basic increased to the new ceiling limit of 15,000.00.
Regards,
Siraj/HR
From India, Kolkata
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The ceiling limit was increased from 6,500.00 to 15,000.00. If you provide Basic + DA to your employees, you should contribute to the PF. Here's an example:
Old Ceiling Limit
- Ceiling Limit: 6,500.00 (Pension fund 8.33% - 541.00)
New Ceiling Limit (Effective from 01/09/2014)
- Ceiling Limit: 15,000.00 (Pension fund 8.33% - 1,250.00)
For your basic above the old ceiling limit and below the new ceiling limit, you should pay based on the actual basic. It is not mandatory to pay your basic increased to the new ceiling limit of 15,000.00.
Regards,
Siraj/HR
From India, Kolkata
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The Employee's Compentation (Amendment) Act, 2017.pdf