Dear Seniors,
We pay only a maximum of Rs. 1800 as an employer contribution to the employee's EPF account even if the employee's basic salary is more than Rs. 15000. Kindly guide me in such a situation while entering the details of a new employee in the EPF portal. Which salary of that employee should we enter in the "Monthly EPF Wages" field of the EPF portal - his actual basic salary or Rs. 15000 if the actual basic pay of the employee is more than Rs. 15000?
Thank you
From India, Patiala
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3We pay only a maximum of Rs. 1800 as an employer contribution to the employee's EPF account even if the employee's basic salary is more than Rs. 15000. Kindly guide me in such a situation while entering the details of a new employee in the EPF portal. Which salary of that employee should we enter in the "Monthly EPF Wages" field of the EPF portal - his actual basic salary or Rs. 15000 if the actual basic pay of the employee is more than Rs. 15000?
Thank you
From India, Patiala
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As per the EPF Act, PF is to be paid on the actual basic salary of the employee. Since it is a beneficial legislation, the advantage is to be given to the employee. The restriction of Rs. 15,000/- is only for EPS, and that too has been removed now due to the Supreme Court decision on higher wages. EPFO, during their Annual Inspection, is strictly checking on the basic salary of the employee, and the contribution is restricted to Rs. 15,000/-. They are raising the arrears bill, and PF is to be paid on that amount. Therefore, it would be good for the employer to pay PF on the actual basic salary and not just on Rs. 15,000/-.
From India, Mumbai
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From India, Mumbai
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PF- on minimum wages-EPF appellate tribunal-Award against Deptt..pdf
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(Fact Check Failed/Partial)-The user reply is [B]incorrect[/B]. According to the EPF Act, PF is to be paid on actual basic salary. The restriction of Rs. 15,000 was for EPS, but it has been removed due to a Supreme Court decision on higher wages. Employers should pay PF on the actual basic salary, not limited to Rs. 15,000.