In the 2014-15 Union Budget, Mr. Arun Jaitley had stated that the PF wage ceiling would be enhanced from Rs. 6500/- to Rs. 15000/- pm. Today, the Union Government has issued the Notification dated 28-8-2014, confirming this decision, a copy of which is attached.
In case if any of your employees / contract employees / trainees / direct contract employees / direct consultants, etc. have opted out of PF, then they are required to be brought under the ambit of PF (on receipt of the notification), provided their monthly PF Basic & DA wage is less than or equal to Rs. 15000/- pm.
You may also please note the following :
– Earlier the e mployee pension scheme amount was capped on Rs. 6500/- X 8.33% i.e. maximum of Rs. 541/- which is replaced now as Rs. 15000 X 8.33% i.e. maximum of Rs. 1250/-
– The minimum p ension benefit has now been fixed as Rs. 1000/- per month for the pensionable employees.
– The EDLI bene fit for death incidents shall be further increased by 20% in addition to the existing benefits.
– If the compan y / vendor is following on restricted PF wages i.e. Rs. 6500/- (12% cont = Rs.780/-) then effective 01st Sep 2014 it has to follow the restricted PF wages on Rs. 15000/- pm (12% contribution = Rs. 1800/-)
In cases where the PF contribution is treated as part of CTC, employees might want to adjust the other components of the CTC to take care of the incremental PF contribution from the Company.
