In Delhi, Minimum wage for unskilled is Rs. 14842/- So to get epf exemption, is it better to give 15100/- if he/she has no existing epf account..? I request experts to put some light on it.
From India, Kotdwara
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From India, Kotdwara
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Fixation of salary is in the hands of the employer. The only requirement is that it should not be less than the statutory minimum wages. Anything you pay above the minimum wages is permitted, and no one can question it. The EPF Organization does not have the authority to question you if you are paying less than the minimum wages; the labor department is responsible for that.
If you wish to exclude an employee from EPF, you can pay a salary higher than Rs 15000 to exclude them. However, the EPFO can revise this wage ceiling at any time, potentially raising it to 20 or 25 thousand! In such a scenario, what would you do? Would you be able to increase the wages beyond that? This implies that the exclusion should only be considered a temporary measure and not a permanent solution to avoid EPF coverage.
From India, Kannur
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4483If you wish to exclude an employee from EPF, you can pay a salary higher than Rs 15000 to exclude them. However, the EPFO can revise this wage ceiling at any time, potentially raising it to 20 or 25 thousand! In such a scenario, what would you do? Would you be able to increase the wages beyond that? This implies that the exclusion should only be considered a temporary measure and not a permanent solution to avoid EPF coverage.
From India, Kannur
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PF Contribution on not less than Minimum Wage.pdf