EPF
Reshma K
(Querist) 03 February 2010
This query is : Resolved
Are employees getting more than Rs 6500 pm as basic pay eligible for EPF. Can you pls clarify very clearly if the employers have to provide pf for people getting salary like 20K etc. You see all software company employees get huge salareis and all of them have pf. What is this cap of Rs 6500.
Question 2.
Is this 6500 referring to basic pay. And are there guidelines regarding fixing of basic pay in the total salary.
Question 3.
This has troubled me a great deal and i have scratched my head on this. What is wages and what is salary. What is the difference between the two. Please help
A.R.KUPPUSAMI
(Expert) 05 February 2010
As per EPF Act wages consists Basic,D.A., Any kind of food concessions.EPF applicable for Basic and D.A. those who are drawing more than 6500/- per month from the first month itself, they are excluded employees. If the Er and Ee make a joined Declaration to subscribe EPF scheme then they can enrolled with.
Minimum Wages Act is there, all factories and establishments should follow the Act. According to the Act and livelihood the Salary structure should be modified.
Wages paid to workers on daily wages basis whereas Salary on monthly basis
