• Rs

  • 1. Wage: As per Employees Provident Fund and Miscellaneous Provisions Act 1952, basic wage means all emoluments which are earned by an employee in accordance with the terms of the contract of employment but does not include the cash value of any food concession; any dearness allowance, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance or any presents made by the employer. But in calculating PF, wage means and includes basic wage along with dearness allowance.
  • 2. Before 1 st September 2014, the wage ceiling for PF calculation was 6,5000 Rupees per month. But after 1 st September 2014, EPF is mandatory for all those whose salary is less than 15,000 Rupees per month.
  • 3. EPF registration is mandatory if an establishment or entity have employed 20 or more employees. If the establishment or entity has employed less than 20 then it can opt for voluntary registration with the consent of the majority of employees.
  • 4. Employees drawing wage less than 15,000 Rupees per month have to mandatorily become members of the EPF. However, an employee who is drawing above 15,000 Rupees can become member of EPF with permission of Assistant PF Commissioner. Here, his EPF shall be calculated not on his actual wage, but on prescribed ceiling, i.e. 15,000Rupees.
  • 5. EPS and EPF contribution from employer is not applicable for other employee (who are not Indian) drawing wage up to 15000 Rupees per month.