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Dear All,

Doubts about EPF

I have two doubts about EPF.

1. If an employee is absent for a long period of time (like a month or two), should that employee be included in the contribution list with NCP days? If yes, should it also be shown in the column of "number of excluded employees" for the month?

2. In the ECR sheet, there are many columns like Gross Wages, EPF Wages, and EPS Wages. If the employer calculates PF contribution on basic pay + DA only, does gross salary have to be shown? Or is it enough to show the BASIC + DA sum in all columns?

Kindly advise.

Thanks & Regards,
Manu

From India, Bengaluru
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Non-Contributory Days and EPF Membership

1. Leave days shall be mentioned as non-contributory days. Therefore, an employee in service not paid wages would continue to be a member of EPF. Just because the contribution is not paid, he will not become an excluded employee. An excluded employee means an employee excluded from the coverage of EPF on account of his salary being above the threshold limit of Rs 15,000 or being a PF pensioner. An employee on leave without pay should not be treated as an exit or left member, but the days should be marked as non-contributory days.

Salary Components for PF Contribution

2. Some companies show only Basic and DA. Some show the actual gross salary and PF and PS contributing salary. If you do not contribute PF on actual gross but restrict the contributions to Rs 15,000, you can show only Basic and DA under Gross Salary.

From India, Kannur
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