Hello Experts ! If an employee is drawing more than 15000 (basi +Da ) , and can be still part of the epf? if yes, shall employer contribute too ?
From India, Ahmedabad
From India, Ahmedabad
An employee getting salary (PF qualifying salary) of more than Rs 15000 shall be covered under EPF. But if he is joining the EPF after 1st Sept 2014 he cannot be part of Pension Scheme. BUT in respect of such employees, the employer has no legal obligation to cover him under EPF also. However, nothing above mentioned will apply to an existing member or PF. Existing member means a person who is already a member of EPF/ EPS.
In respect of an Employee joining now with salary of more than Rs 15000 the employer shall contribute to EPF only. It is not necessary that the contribution should be limited to 12% of Rs 15000, but it can be any percentage as the employer and employee thinks fit. EPF being an investment, if the employee decides that a higher amount may be contributed so that he will get the benefit of 80C (under Income Tax Act) he can do it. At the same time, the employer's legal liability is restricted only to 12% of Rs 15000. But in a CTC structure, there is nothing wrong in employer also contributing higher amounts.
From India, Kannur
4249In respect of an Employee joining now with salary of more than Rs 15000 the employer shall contribute to EPF only. It is not necessary that the contribution should be limited to 12% of Rs 15000, but it can be any percentage as the employer and employee thinks fit. EPF being an investment, if the employee decides that a higher amount may be contributed so that he will get the benefit of 80C (under Income Tax Act) he can do it. At the same time, the employer's legal liability is restricted only to 12% of Rs 15000. But in a CTC structure, there is nothing wrong in employer also contributing higher amounts.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Employee Appraisal Form new.doc