As the previous limit for PF deduction was ₹6,500, and now the limit has risen to ₹15,000, some of our employees are earning a basic salary of more than ₹15,000. Is the company still required to deduct PF on their basic salary? Please suggest.
From India, New Delhi
Acknowledge(0)
Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Yes, you can deduct PF for every employee.
For Existing Employees: Eligible For EPS
If the employee's basic salary is less than ₹15,000, then the calculation is actual basic x 12% (EPS 8.33% + EPF 3.61%).
If the employee's basic salary is more than ₹15,000, then the calculation is ₹15,000 x 12% (EPS 8.33% + EPF 3.61%) OR actual basic x 12% (EPS 8.33% + EPF 3.61%).
For New Employees (Joining after 1st Sep '14): If basic is below ₹15,000, then only eligible for EPS.
If the employee's basic salary is less than ₹15,000, then the calculation is actual basic x 12% (EPS 8.33% + EPF 3.61%).
If the employee's basic salary is more than ₹15,000, then the calculation is ₹15,000 x 12% (EPF 12%) OR actual basic x 12% (EPF 12%).
EPS age limit will be 58 years. If an employee crosses 58 years, they are not eligible to contribute to EPS.
1) The PF monthly wage ceiling has been raised from ₹6,500 to ₹15,000.
2) If any employee joined on or after 1st Sep 2014 with a basic salary more than ₹15,000 at the time of joining, they will not become a member of the EPS. Their entire contribution (employee & employer) of 24% will go to the provident fund account. These members are not eligible for EPS benefits.
From India, Hyderabad
Acknowledge(0)Amend(0)
6For Existing Employees: Eligible For EPS
If the employee's basic salary is less than ₹15,000, then the calculation is actual basic x 12% (EPS 8.33% + EPF 3.61%).
If the employee's basic salary is more than ₹15,000, then the calculation is ₹15,000 x 12% (EPS 8.33% + EPF 3.61%) OR actual basic x 12% (EPS 8.33% + EPF 3.61%).
For New Employees (Joining after 1st Sep '14): If basic is below ₹15,000, then only eligible for EPS.
If the employee's basic salary is less than ₹15,000, then the calculation is actual basic x 12% (EPS 8.33% + EPF 3.61%).
If the employee's basic salary is more than ₹15,000, then the calculation is ₹15,000 x 12% (EPF 12%) OR actual basic x 12% (EPF 12%).
EPS age limit will be 58 years. If an employee crosses 58 years, they are not eligible to contribute to EPS.
1) The PF monthly wage ceiling has been raised from ₹6,500 to ₹15,000.
2) If any employee joined on or after 1st Sep 2014 with a basic salary more than ₹15,000 at the time of joining, they will not become a member of the EPS. Their entire contribution (employee & employer) of 24% will go to the provident fund account. These members are not eligible for EPS benefits.
From India, Hyderabad
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.
Calcu. pf Emp.eps.epf sample sheet for HR site..xls
PF Judgement - Bom HC - Temp employee.doc