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Epf deduction

(Querist) 30 September 2014 This query is : Resolved 
As per EPF Act the wage limit for deduction of EPF was 6500/- which has now been enhanced to 15000/- w.e.f 1st Sept, 2014. However, my query is whether the employer is totally exempted from EPF contribution in case if the wage of his employees is more than 15000/- or he has to compulsorily deduct EPF for first 15000/- and for rest he can claim exemption on From 11.

E.g wage of employees is 20000/-
is he toatlly exempted or EPF has to be deducted on first 15000/- and for 5000/- he can fill form 11.
Kumar Doab (Expert) 30 September 2014

If wages of the employee as per def. of wages in the Act, are above wage ceiling then it is not mandatory to provide PF.

However employer can grant PF facility and has to deduct and tender PF on PF wages as defined in EPF Act………………………….thus can deduct PF on 15000/-……………………….and even above Rs.15000/-

The social security benefits provided by employers make employers ‘Preferred Employer’ in the market.

The difference is not much and as per prevailing practices PF contribution by employer is being inserted in CTC………………………
You may proceed as deemed fit at your end.
Rajendra K Goyal (Expert) 01 October 2014
Agree with the expert.
MEENAXI (Querist) 04 October 2014
Thanxs so much sir 4 d advise n guidance....


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