Wage code-Employee Provident Fund (EPF) contribution is rs 1800 or different?

Ask the Community
,
1

Hi all,

As per wage code will PF threshold will be rs1800 p.m? if changing what would be the new amount?

2 Likes
2

Employees’ minimum basic pay will have to be 50% of their CTC after the new Wage Code is implemented. With increased proportion of basic salary in the overall remuneration package, the employer contribution to various retirement schemes like EPF/NPS (National Pension Scheme) will go up in monetary term.

This can be taken as an example:

Before Wage Code An employee receiving a monthly salary of Rs 20,000 with minimum pay of Rs 8000. The employee’s PF contribution in this situation will be 12% of basic salary, or Rs 960.
After Wage Code Bill An employee receiving a monthly salary of Rs 20,000 with minimum pay of Rs 10,000. The employee’s PF contribution in this situation will be 12% of basic salary, or Rs 1,200.

2 Likes