Dear Sir Kindly clarify the procedure of deduction of Provident fund of minimum wages as per H.P. Govt. Rs. 5100/- With Regards, (S.K. Singh)
From India, Delhi
Acknowledge(0)
Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear SKS,
As you mentioned, the HP minimum wage is Rs. 5100/-, then the deduction should be 12% (EPF) - Rs. 612/- Employee share. Employer Share 3.67% (EPF) - Rs. 187/-, 8.33% (EPS) - Rs. 425/-. As the new ceiling is concerned, the employee whose basic salary falls under the ceiling for EPF/EPS deduction should be on the same scale. If the employees who were benefiting from EPF earlier, their benefits should continue if their basic salary rose above Rs. 15000/- or less, then compliance should be based on the actual basic or Rs. 15000/-. The rest admin charges should remain the same as earlier, instead of Rs. 6500/- (EPD/EDLI ceiling), Rs. 15000/- should be considered for EPS/EDLI.
Account Details for Deductions
A/C 1 - 12% (+VPF) + 3.67% of EPF salary.
A/C 2 - 1.1% of EPF salary, not less than Rs. 5/-.
A/C 10 - 8.33% of EPS salary (ceiling is Rs. 15000/-), not more than Rs. 1250/- each.
A/C 21 - 0.5% of EDLI salary (ceiling is Rs. 15000/-), not more than Rs. 75/- each.
A/C 22 - 0.01% of EDLI/EPS salary (ceiling should be Rs. 15000/-), not less than Rs. 2/-.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(0)Amend(0)
256As you mentioned, the HP minimum wage is Rs. 5100/-, then the deduction should be 12% (EPF) - Rs. 612/- Employee share. Employer Share 3.67% (EPF) - Rs. 187/-, 8.33% (EPS) - Rs. 425/-. As the new ceiling is concerned, the employee whose basic salary falls under the ceiling for EPF/EPS deduction should be on the same scale. If the employees who were benefiting from EPF earlier, their benefits should continue if their basic salary rose above Rs. 15000/- or less, then compliance should be based on the actual basic or Rs. 15000/-. The rest admin charges should remain the same as earlier, instead of Rs. 6500/- (EPD/EDLI ceiling), Rs. 15000/- should be considered for EPS/EDLI.
Account Details for Deductions
A/C 1 - 12% (+VPF) + 3.67% of EPF salary.
A/C 2 - 1.1% of EPF salary, not less than Rs. 5/-.
A/C 10 - 8.33% of EPS salary (ceiling is Rs. 15000/-), not more than Rs. 1250/- each.
A/C 21 - 0.5% of EDLI salary (ceiling is Rs. 15000/-), not more than Rs. 75/- each.
A/C 22 - 0.01% of EDLI/EPS salary (ceiling should be Rs. 15000/-), not less than Rs. 2/-.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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.
EPF Wages Ceiling enhancement_Not ification_28 08 2014.pdf
Creating a Competitive Salary Structure.doc
Salary Structure.zip