Hi This is a question from Employers liability Under EPF. If a Employee joins at a basic pay of 12000 and gradually Breaches the limit of Rs 15000 Is the Employer bound to continue employer contribution even if the basic salary of the Employee is more than Rs 15000
Ans: In the context of the Employees' Provident Fund (EPF) in India, the EPF contribution is calculated as a percentage of the basic wage. As of my last update, the contribution rate for both the employer and the employee is 12% of the basic wage, including basic pay, dearness allowance, and retaining allowance, if any.
When an employee's basic wage crosses Rs. 15,000 per month, the EPF contribution is still calculated on the maximum limit of Rs. 15,000. This means that both the employer and the employee will continue to contribute 12% of Rs. 15,000 to the EPF, even if the employee's actual basic wage is more than Rs. 15,000.
So, to answer your question directly: Yes, the employer is bound to continue the employer contribution even if the basic salary of the employee is more than Rs. 15,000. The contribution will be calculated on the capped limit of Rs. 15,000.
However, it's essential to note that EPF rules and regulations may change over time. It would be advisable to consult the latest EPF guidelines or seek advice from a financial or legal expert to ensure compliance.