Dear Onairsam,
I appreciate the mail posted by Sh Keshav Korgaonkar,who has fully explained the position with regards to your query. I agree with him that according to the recent amendment, the basic wage ceiling under the Employees Provident Fund Scheme has been raised to Rs 15,000 from existing Rs 6,500 per month. There are two distinctive categories of employees:-
(i) where a person is enrolled as a member of the Provident Fund,when he was drawing salary less than Rs 15000/- but subsequently his salary exceeds Rs 15000/-. In that case he will continue to be member of the Provident Fund all the times but the employer has an option to restrict his contribution to the Fund on the amount payable on Rs 15000/-per month.Thus the contribution beyond Rs 15000/- is at the discretion of the employer but once he extends the benefits he can not withdraw the same at a later stage.
(ii) a person appointed on salary exceeding Rs 15000/- and has not been a member of the Fund earlier,will not be liable for the benefits of the scheme under the Provident Fund since he will be termed as 'Excluded employee'. Of course,if the employer and employee both agree, there is no bar in enrolling an employee as an member under the Provident Fund.
Thus in view of the above, you are to assess yourself as to which category of employees you belong.
BS Kalsi
From India, Mumbai
455I appreciate the mail posted by Sh Keshav Korgaonkar,who has fully explained the position with regards to your query. I agree with him that according to the recent amendment, the basic wage ceiling under the Employees Provident Fund Scheme has been raised to Rs 15,000 from existing Rs 6,500 per month. There are two distinctive categories of employees:-
(i) where a person is enrolled as a member of the Provident Fund,when he was drawing salary less than Rs 15000/- but subsequently his salary exceeds Rs 15000/-. In that case he will continue to be member of the Provident Fund all the times but the employer has an option to restrict his contribution to the Fund on the amount payable on Rs 15000/-per month.Thus the contribution beyond Rs 15000/- is at the discretion of the employer but once he extends the benefits he can not withdraw the same at a later stage.
(ii) a person appointed on salary exceeding Rs 15000/- and has not been a member of the Fund earlier,will not be liable for the benefits of the scheme under the Provident Fund since he will be termed as 'Excluded employee'. Of course,if the employer and employee both agree, there is no bar in enrolling an employee as an member under the Provident Fund.
Thus in view of the above, you are to assess yourself as to which category of employees you belong.
BS Kalsi
From India, Mumbai
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Online payment of PF mandatory from 1.1.2016.pdf