Hi,
All fixed pay will be considered for PF ceiling limit. If employee Salary break up is 12000 as Basic 4800 as HRA and 5000 as Special allowance then Basic + Spl allowance will be added and considered for PF. As here the value will be more then 15000 only 15000 as per ceiling limit will be considered.
- What are the components to be considered for the purpose of PF contribution from the wages?
A. After the latest Supreme Court Judgement on Surya Roshni case, dated 28th February 2019, the contribution shall be calculated on the basis of monthly pay containing the following components actually drawn during the whole month whether paid on a daily, weekly, fortnightly or monthly basis:
i. Basic wages
ii. Dearness Allowances
iii. Retaining Allowances
iv. Conveyance Allowances
v. Other Allowance
vi. Special Allowance
vii. Leave Travel Allowances
viii. Fixed cash Allowance (Management allowance, educational Allowance, Medical Allowance, Telephone, Food Allowance etc.)
ix. Petrol Reimbursement (without bills and without supporting documentation/data to substantiate the reimbursement is for official purposes)
x. City Compensatory Allowance or any other allowance paid as fixed component, uniformly and universally having no direct nexus to the outcome of an employee’s normal work.
- Which are the excluded components for the computation of EPF?
A. These components are excluded while calculating the EPF:
i. HRA allowance (House rent allowance)
ii. Attendance allowance
iii. Night shift allowance
iv. Washing allowance
v. Relocation allowance
vi. Overtime allowance
vii. Canteen allowance
viii. Various Incentives provided for particular employee
ix. Bonus or Commissions payable to a particular Employee
Regards,
Durga Devi .K
GM- HR & Finance
Hand Phone: +91 7338467029
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