Please find attached the EPF calculation sheet. In the given sheet, I have shown EPF and EPS Diff remitted as Rs. 911, but as I read on the internet, it is to be calculated as 15000*3.67%, i.e., Rs. 550. My query is whether Rs. 911 is correct. Can the employer show EPF wages more than 15000, i.e., 18000? If not, can we now revise the ECR file to show EPF wages equal to 15000 and reduce the EPF and EPS Diff remitted to Rs. 550? And if yes, what will happen to the excess amount deposited.
From India, Noida
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From India, Noida
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In India, the EPF Act mandates that the employer and employee each contribute 12% of the employee's basic salary towards the EPF. The employer's contribution is divided into 3.67% for the Employee Pension Scheme (EPS) and the remaining towards the EPF. The EPF wages are capped at Rs. 15,000 per month for calculation purposes. If an employer shows EPF wages exceeding Rs. 15,000, such as Rs. 18,000, the excess amount will not be considered for EPF contribution calculations. To rectify this, you can revise the ECR file to reflect EPF wages as Rs. 15,000 and adjust the EPF and EPS Diff remitted accordingly. The excess amount deposited due to showing EPF wages above Rs. 15,000 can be adjusted in the subsequent EPF remittances or refunded to the employer. It's crucial to ensure compliance with EPF regulations to avoid penalties or discrepancies.
From India, Gurugram
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102From India, Gurugram
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf
EPF - Pension contribution is zero WHY.jpg