Pf Wages Revision W.e.f 1st September 2014 - PDF Download

Hi,
I want to confirm how much basic salary we can keep as per govt. law?
As per new rule of PF (revision in wage ceiling) i have implemented 12% on every employee basic. But some are having less than 6500. Is that correct or i need to change basic wages?
Waiting for your responses and suggestions.
Thanks & Regards
Aashima
11th December 2014 From India, Delhi

Dear Sir,
I have one question is that i am working directly as contract employee in jharkhand government. my salary is 12000 per month and i have no such pension account by the jharkhand government can i am applicable for the employee pension amendment 2014
3rd January 2015 From India, Ranchi

That is alright about Rs. 6500 & Rs.15000.. Plz provide me the break up percentage of the employer contribution monthly in PF. Also the employee contribution in percentage....
31st May 2015 From India, Mumbai

Hi Sir,
I have a query, my basic salary is 10000/- and my I am applicable to be deducted for PF. my firm is deducting my share as well as employer's share from my salary itself. Is right way??? as I know, I am applicable to pay only employees share but employer's share has to be paid by the company.
Pls suggest me.
8th July 2015 From India,

Dear Chatuevedi does the rule still prevails Anticipating your valuable feedback
18th January 2016 From India, Gurgaon

sir upto sep 2014 my contribution in pf was 1768 and employer contribution in pf was 1227 and in pension fund 541. but after this notification from october 2014 employer contribution was just reversed. from oct 2014 employer contribution to pf is 541 and towards pension fund is 1227. i cant get it pls help me out. regards.
12th March 2016 From India, Bisrakh

Dear KK2121,

Your id on cite HR is KK2121, I see it is as combination of pairs "K-K" "21-21".

Like your ID, your Basic pay is also forming a pair of "Employee-Employer" contribution.

Lets see

Here I assume your Basic Pay is Rs.14,730/-

PF Computation Till Sep-2014

A. Employee's Contribution to EPF: Rs.14,730 * 12% = Rs. 1,768/-

B. Employer's Contribution to EPS: Rs.14,730 * 8.33% = Rs.1,227 wiz. limited upto Rs.541/- (Rs. 6,500 * 8.33%)

C. Employer's Contribution to EPF= A-B

i.e. Rs. 1,768 - 541 = Rs. 1,227/-

PF Computation After Oct-2014

A. Employee's Contribution to EPF: Rs.14,730 * 12% = Rs. 1,768/-

B. Employer's Contribution to EPS: Rs.14,730 * 8.33% = Rs.1,227 wiz. less than higher limit Rs.1,250/- (Rs.15,000 * 8.33%)

C. Employer's Contribution to EPF = A-B

i.e. Rs. 1,768 - Rs.1,227 = Rs. 541/-

Thus in your case the amount of Employer's Contribution towards EPF and EPS are just reversed.

I hope the computation has clarified your doubts.

Besides the functional points, in mathematical terms, I will term Basic (approx. Rs. 14,730) as "Reversing Basic", which is forming a pair of reversing amount of contribution.
12th March 2016 From India, Mumbai

Dear Members,
Please help for understanding EPS calculation logic
Just want to understand can calculate eps as per blow scenario 2 & 3 (as a pro-rata base) or can pay on month days not include absent like blow scenario -1?
Scenario -1
Actual Salary for July-2016
PF wages PF EPS Wages EPS Employer share
25000 3000 15000 1250 1750
Problem statement.
Scenario -2
Paid 25 days for July-2016 (absent 6 days)
PF wages PF EPS Wages EPS Employer share
20161 2419 12097 1008 1411
Problem statement.
Scenario - 3
Paid 31 days for Salary Aug-2016 also Paid 6 days for July-2016 as arrears
PF wgs PF wgs Arr PF + Arr EPS Wgs EPS Wgs Arr EPS ES
25000 4839 3581 15000 2903 1491 2090
Regards
Shanu
26th August 2016 From India, New Delhi

Hi,
Please see the attached notification. As per it, an international worker joining establishment on or after 01.09.2014 should not be made member of EPS. Entire 12% employer contribution should go to EPF.
8th June 2018 From India, Bengaluru

Attached Files (Download Requires Membership)

EPFO_notification.jpg (2.91 MB, 21 views)