Kindly guide in the following doubt/issue related to working of EPF act 1952: 1) Employee joins the org with a Basic pay+DA of Rs 10,000/- Is employer contribution @ 12% upto Rs 6500/- compulsory? 2) In the above ex is the employee contribution @ 12% compulsory? 3) If a Employee joins the Org with a Basic pay plus DA of Rs 4500 and Gets promoted and after promotion the revised Basic pay plus DA is Rs 10500/---In this case after promotion is Employer Contribution @ 12% compulsory upto Rs 6500/-?
If basic while joining is below Rs 6500 the PF contribution@12% is compulsory.
Post increment is Basic + DA cross 6500 then employer have 2 options. Either contribute on actual or restrict on 6500.
For new joiners if Basic + DA is above 6500 no mandate to contribute towards pf. If employer wish to contribute he can contribute selecting any of 2 options.
CAclubindia
