Question
My basic salary is above Rs 15,000 and I want to know whether PF must be calculated on the whole amount or just the ceiling.
Answer
EPF is statutorily mandatory only up to a wage ceiling of Rs 15,000 of basic plus DA. If your basic exceeds Rs 15,000, the employer is legally required to contribute only on Rs 15,000, though many employers voluntarily contribute on the full basic. The EPS (pension) portion is always restricted to Rs 15,000, so EPS is capped at around Rs 1,250 per month. Employees earning above the ceiling who were never EPF members earlier can be treated as excluded, subject to conditions. Check your split with our EPF calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.