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Hi! We have some employees in our company whose salary is above 15000 and their PF and ESI is not being deducted.
Kindly provide me PF & ESI ruling (Government Copy) where it is mentioned that it's optional to deduct PF & ESI of those workers whose salary is above 15000.

From India, Patna

Dear Wasim Ahsan,

I shall reproduce the first paragraph of the ESI scheme as under.

" Coverage under the ESI Act, 1948


Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.

Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.

*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010)."

Regarding EPF kindly see the attached file on wage ceiling


From India, Bangalore
Attached Files (Download Requires Membership)
File Type: pdf EPF notification on ceiling hike 15000.pdf (259.5 KB, 2843 views)


Department is asking to show where it is written that we may or may not deduct PF if salary is more than 15000. Wasim Ahsan 9470040025
From India, Patna

Thanks but please provide ruling where its written that its optional to deduct or not to deduct PF for wages above Rs. 15,000/-.
Actually my client is saying its mandatory to deduct PF even if the wage of worker is above 15,000/- and since I have not deducted PF of workers earning more than 15,000/- client has asked to produce the government ruling for the same. If i fail to produce, I will be in a great trouble for the time being.
Wasim Ahsan
+91 9470040025

From India, Patna

Dear Wasim,
I hope, the following detail will suffice for you and it will provide you an exhaustive idea about your concern.
1. (i) It is specifically written in "Employees’ Provident Funds (Amendment) Scheme, 2014".
(ii) The Amendment came into force w.e.f. 1st September, 2014
2. In the Employees’ Provident Funds Scheme, 1952
(a) Paragraph 2, in clause (f), in sub-clause (ii), for the words “six thousand and five hundred rupees” the words “fifteen thousand rupees” shall be substituted.
(b) Paragraph 26, sub-paragraph (6), for the words “six thousand and five hundred rupees” the words “fifteen thousand rupees” shall be substituted.
(c) Paragraph 26A, sub-paragraph (2), for the words “six thousand and five hundred rupees” the words “fifteen thousand rupees” shall be substituted.
Excluded employee: an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds [six thousand and five hundred rupees]
per month;
Note: Gazette Notification was published on 22nd August, 2014

From India, Calcutta

I have superannuated on 30.06.2013 from a company under EPF Coverage. I had taken permission to contribute on total wages to EPF 1995 under para 26(6) from EPF authority of jurisdiction during March 2010, the date I joined new company after resigning from old company where EPF contribution was restricted to the ceiling of Rs 6500/-. In view of the Employees Pension (Amendment) Scheme 2014 and option executed by my employer and me, permission granted by the APFC of jurisdiction and EPS contribution remitted regularly on monthly basis w.e.f. March 2010 to 30.06.2013 by the employer, what will be the formula for calculating my EPS pension? 1.Should pensionable salary be actual salary on which EPS contribution deposited during 12 months preceding date of superannuation or statutory ceiling of Rs 6500/-?
SLPAL Retired EPF subscriber, who served and contributed for 31 years under the EPF Scheme.

From India, Shimla

Dear Sipal, If you contributed to EPS-95 on actual salary, your pensionable salary will be average of last twelve months' actual salary. Abbas.P.S
From India, Bangalore
Milton M Joseph
You have the right to divide their salary as per the laws of PF. It is also for your consideration that ESIC limit increased to Rs.25000/-
Insurance Corporation (ESIC) board has decided to increase the income ceiling limit for employees, from the existing Rs.15,000 a month for coverage under the ESIC scheme to Rs.25,000 a month.
This decision will help 32 lakh employees to become members of the ESIC scheme. At present there are 3 crore employees covered under the ESIC scheme. To a question, he said the board of trustees of the Provident Fund has also decided to increase the interest rate of Provident Fund contributions from the existing 8.5 per to 8.75 per cent.

From India, Thrissur
Has there been any ofiicial announcement for the limit be increased to 25000 . we have no notifiaction as yet.
From India, Dehra Dun
Any circular regarding pf deduction - maximum ceiling salary to 15000 (rs 1800)
From India, Chennai
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