EPF Contribution Will Deduct On Allowances Also Or Only From Basic & DA

Dear Seniors,

Hello to everyone.

Now, the wage ceiling for PF mandatory coverage has been increased from Rs. 6,500/- to Rs. 15,000/- per month.

Please clarify one thing: Will EPF deduction be done from the whole gross salary including allowances, or will it be deducted based on Basic/DA?

Please provide your important suggestions.

Wishes,

Sumit Nautiyal

Hi,

PF contribution is payable on all salary components except HRA and Conveyance. For any further clarification, please reach me at 9686750717.

Regards,
Manjunath

Dear Sumit,

EPF deduction is applicable on components like basic, DA, components equal to basic and DA, retaining allowance, personal pay for small family norms, etc. Hence, both of the above postings are not exactly correct.

Abbas.P.S

The current scenario:

In Tamil Nadu Trichy zone, the EPF office is advising employers to make deductions from their entire earnings, except HRA. If not done so, the concerned employers are liable for disciplinary action by the EPF office. Additionally, the EPF Office is insisting that employers implement this deduction (amendment) with effect from September '14. Failure to comply will result in penalties and interest being recovered for the periods where deductions were not made from the employer's end.

Therefore, EPF deductions should be made from all emoluments except HRA. I hope this provides you with a better understanding.