PF Contribution – Few Facts
UNDER EPF:
The contributions are payable on maximum wage ceiling of Rs 15000/- by employee and employer.
The employee can pay at a higher rate and in such case employer is not under any obligation to pay at such higher rate.
To pay contribution on higher wages, a joint request from Employee and employer is required. In such case employer has to pay administrative charges on the higher wages (wages above 15000/-)
For an International Worker, wage ceiling of 15000/- is not applicable
10% rate is applicable for
Any establishment in which less than 20 employees are employed.
Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction
Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth and
Any establishment in following industries:- (a) Jute (b) Beedi (c) Brick ( d) Coir and (e) Guar gum Factories.
Monthly payable amount under EPF Administrative charges is rounded to the nearest rupee and a minimum of Rs 500/- is payable. If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 75/-
Monthly payable amount under EDLI Administrative charges is rounded to the nearest rupee and a minimum Rs 200/-is payable. – If the establishment has no contributory member in the month, the minimum administrative charge will be Rs 25/-
UNDER EPS:
Contribution is payable out of the employer’s share of PF and no contribution is payable by employee.
Pension contribution not to be paid: When an employee crosses 58 years of age and is in service (EPS members ceases on completion of 58 years).
UNDER EDLI: Contribution to be paid on up to maximum wage ceiling of 15000/- even if PF is paid on higher wages.
we have 8 employee in our factory whose salary is within 15000/-
and 5 more employee whose salary is above 15000/-
what should be our contribution – 10% or 12%
whether the 5 employees whose salary is above 15000/- need to be covered under PF OR they are exempted OR it is Optional