New EPF (Employee's'
Provident Fund) ceiling limit finally confirmed through Gazette Extraordinary
Notification made on 28th August 2014 which is effective from first September
2014. This amendment has many impacts apart from increase in contribution.
Key Highlights..!
* Salary ceiling
limit for EPF coverage has been increased from Rs.6,500 to Rs.15,000 per month.
* Salary means only Basic + DA + VDA +
Retaining Allowance + Cash value of any food concession + any other allowance
paid in cash & not defined.
* Minimum Employee’s
Pension with effect from First September 201414 will be Rs.1,000 per month
* Salary ceiling
limit for Employee’s Pension will be Rs.15,000 per month Hitherto it was
Rs.6,500 . This means 8.33% of
on Rs.15,000 basic that is Rs.1250 per month will be diverted to pension fund.
Earlier it was Rs.541 only on Rs.6,500 8.33%
* Those who want to contribute above Rs.15,000
for pension fund - will have to shell out 1.16% additional contribution on the
amount in excess of Rs.15,000 from employees share & give declaration (both
employer and employee) to that effect within 6 months from the date of this
notification failing which any additional contribution made above Rs.15,000 to
pension fund would be diverted to EPF fund and will be given the interest as
declared from time to time.
* Employer in
addition to 12 % of Basic, now will have to contribute 0.50% of Rs.15,000 to
Employees Deposit linked Insurance Account (EDLI A/C), 1.10% on Rs.15,000 as administration
expenses on EPF A/C & 0.01% of Rs.15,000 as administration expenses for
EDLI A/C.
* Minimum Widow
Pension with effect from, First September 2014 will be Rs.1,000 per month.
For dependent children with widow, the Children Pension will be Rs.250
per month. If the deceased employee is not survived by widow. But, by the
dependent children Rs.750 per month will be the children pension.
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