Jyothis (Article) (1127 Points)
22 December 20151)Basic-Rs.12,000
,DA-2000
Additional allowance-8000
Is EPF applicable for an employee who draws a salary as structured above.
2)Is epf applicable for an employee joined before sep,2014 whose salary was Rs.6500 +;say Rs.8000 &less than 15000.
His salary during sep,2015 is Rs.14,500 is epf applicable for him.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 24 December 2015
for EPF calculation
Basic + DA is eligible
ceiling of 15000 ( earlier 6500) is there, but if employer and employee agree on higher deduction then it can be paid. otherwise the employee / employer will pay with the ceiling limit of Eligible limit of 15000 only,
Exemption is out of scope in case of covered establishments, unless the employee reach the age of retirement i.e 60 years
Jyothis
(Article)
(1127 Points)
Replied 25 December 2015
Company is not deducting PF on employees whose Gross pay is Rs.15K/more,
Payroll formula is like this,
To check PF applicability-Gross pay Less than Rs.15K
PF Wages for contribution only is - Basic + DA
In almost major cases,....Basic+DA is less than Rs.15K,
My doubt is whether what is the pf wages to check PF mandatory deduction,is it Basic+DA or gross Pay.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 25 December 2015
PF can not be avoided for age below 60 years by covered establishments
Jyothis
(Article)
(1127 Points)
Replied 26 December 2015
Company is not avoiding PF in general ....Is it mandatory for company to deduct PF on employees whose gross pay exceeds 15,000 bt Basic+DA is less than 15000.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 28 December 2015
not true
EPF ceiling limit is 15000/- that means the contribution is limited to 15000 (Basic+ DA) per month, and it does not exempts any employee under 60 of age.
However if employer and employee both get agreed then the ceiling can be raised to enhanced amounts also.
Jyothis
(Article)
(1127 Points)
Replied 28 December 2015
Sir,
My doubt is PF applicable to an employee whose gross pay exceeds Rs.15,000 but Basic+DA is less than Rs.15,000.
Eg-Mr.A a new joiner of Bltd,whose basic+DA is Rs.12,000 & additional Allowance Rs.4000.I.e gross pay exceeds Rs.15,000.
Is company liable to deduct PF.
Jyothis
(Article)
(1127 Points)
Replied 03 January 2016
Mandatory PF applicability to be checked on what part of salary-
1)Basic alone
2)Basic+DA+Retaining Allowance
3)Gross Pay
I know contibution is limited to maximun of Rs.15000 of (Basic+DA)
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 05 January 2016
Normal eligible amount is Basic+ DA for EPF contribution
Exempted is HRA/ Education / TA
However check the terms of retaining allowance, if its casual nature of pay then exempted, if fixed nature of pay then clubbed,
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