The Government of India on 28 August, 2014 (Thursday) revised the wage ceiling for EPF coverage from Rs 6,500 to Rs 15,000 per month. As per official notification, this is effective from 1 September, 2014. The official notification can be read here.
Background to the change
This notification should also be read in the context of a recent survey that the PF Department has asked its officers to conduct. The objective of the survey is to find out all organizations where the employees have a Basic plus DA that is less than 50%of the CTC. This has been termed as an incorrect practice by the Department. This is mostly targeted at employees who are covered under PF. See more here.
When the above two notifications are read together, it leads one to deduce that the PF coverage would be mandatorily applicable to all employees who have a CTC of upto Rs. 30,000/-.
As per the estimates of the PF Department, it is estimated that another 40-50 lakh employees would now be additionally covered under PF.
These notifications also mean that a number of small businesses who were earlier not registered would now need to register for PF and more of their employees would now be covered under PF.
greytHR gears up with the change
greytHR is introducing a series of features that would enable small businesses to easily meet all the requirements required by recent changes - from seeding of UAN number with KYC documents, giving reports of which employees would be now covered under PF, helping in easily registering them for PF coverage and one-click generation of compliance reports.
Watch this space for more information on the features that will help you to easily comply with all requirements of the Employee Provident Fund Organization (EPFO).