The document summarizes recent amendments made in relation to Provident Fund contributions in India effective September 1, 2014. Key changes include increasing the wage ceiling limit from Rs. 6,500 to Rs. 15,000 per month, calculating pension based on average monthly pay over 60 months instead of 12 months, and increasing the maximum EDLI benefit from Rs. 1,30,000 to Rs. 3,60,000. The amendments affect contribution rates and calculations for employees earning above the new wage ceiling limit. Online PF payment and a new social security agreement with the Czech Republic are also mentioned.

1. Amendments in relation to PF
w.e.f. 01.09.2014

2. 1
Increase in wage ceiling limit from Rs. 6,500/- to Rs. 15,000/-under
the Employees’ Provident Funds and Miscellaneous Provisions Act,
1952 (PF Act)
Press – F5

3. 2
Slide Number
Recent Amendments 3
New Joinees – EPS applicability 4
Pension calculation 5
Minimum Pension 6
EDLI Benefit 7
Effect on Companies depositing dues under PF Act on Full Basic Pay
Basic Pay includes Basic Salary + Dearness Allowance + Cash value of food
concession + Retaining Allowance (An allowance payable by closed
establishment for retaining service)
9 & 10
Effect on Companies depositing dues under PF Act on Wage Ceiling
Limit (w.e.f. 01-09-2014 Rs. 15,000/- per month, upto 31-08-2014
– Rs. 6,500/- per month)
12 & 13
Other recent changes – Online PF Payment 14
Social Security Agreement with Czech Republic 15

4. 3
 Ministry of Labour and Employment vide Gazette Notification dated 22-08-
2014 has increased statutory wage ceiling Limit for Provident Fund, Pension
Fund and EDLI from Rs. 6,500/- p.m. to Rs. 15,000/- p.m.
 The amendments come into force w.e.f. the September 1, 2014 i.e.
September, 2014 months’ dues under PF Act which will be deposited on or
before October 15, 2014.

5. 4
Effect of new EPS amendment for new PF Members having Basic Pay
more than Rs.15,000/- on or after 01-09-2014. (New PF Members means
who do not have active PF a/c on or before 31-08-2014)
EPS will be applicable only if employee basic pay is not more than Rs.15,000/- per
month on or after 01.09.2014.
The entire employer and employee contribution shall remain in the Provident Fund
(A/c-1) and no diversion to EPS (A/c 10) shall be made for any new PF member on
or after 01-09-2014 having Basic Pay more than Rs. 15,000/-.
If employee is already a PF member, he/she will continue to be PF Member if
his/her Basic Pay crosses Rs. 15,000/- per month during the course of his/her
service / career. But EPS contributions would be restricted to 8.33% of Rs. 15,000/-
i.e. Rs.1,250/- per month.
Career means if he has joined from previous company with EPS membership, he
will have to continue with his EPS membership in new company also. Even if he
has crossed Rs.15,000 Basic pay.

6. 5
 For calculating pension, Pensionable Salary shall be the average monthly
pay for 60 months. Previously it was 12 months.
 W.e.f. 01-09-2014, the provisions for pension contribution on higher salary
(more than wage ceiling limit (Rs. 15,000/-) has been deleted and as such
no new options can be allowed to any member of EPS 1995 on and after
01-09-2014.
 Wherever employer & employees have opted to contribute on salary
exceeding Rs. 6,500/- per month, such employer and employees will have
to exercise a fresh option within a period of 6 months to contribute on
salary exceeding Rs. 15,000/- per month subject to the condition that such
member would have to contribute towards the Government’s share of
contribution @ 1.16% on the salary exceeding Rs. 15,000/- per month from
his/her share of contribution.

7. 6
 Minimum Pension as per Gazette Notification dated 19-08-2014
Member’s Pension : Minimum pension Rs. 1,000/- per month
Window(er)/Nominee/
Dependent parents
Pension
: Minimum pension Rs. 1,000/- per month
Children’s Pension : Minimum pension Rs. 250/- per month per child
i.e. 25% of widow pension
Orphan’s Pension : Minimum pension Rs. 750/- per month per child
i.e. 75% of widow pension

8. 7
 Maximum EDLI benefit amount has been increased from Rs. 1,30,000/- to
Rs. 3,60,000/- where the date of death of the member occurs on or after
01-09-2014.
Formula – (Basic Pay and Rs. 15,000/- whichever is less x 20) x 120%
If Basic Pay Rs. 20,000/- (Rs. 15,000 x 20 ) x 120% = Rs. 3,60,000/-
If Basic Pay Rs. 10,000/- (Rs. 10,000 x 20 ) x 120% = Rs. 2,40,000/-

9. Effect on Companies depositing dues
under PF Act on Full Basic Pay
Refer - Slide 9 & 10
8

10. Basic Pay ~ Rs. 20,000 9
A/c
No.
Rate PF/EPS/EDLI
Salary
w.e.f.
01-09-14
Member of EPS
before
01-09-2014
No Membership of
EPS before
01-09-2014
Calculation upto
31-08-2014
Employees’
Share
1 12% 20,000 2,400 2,400 2,400
Employer’s
Share
1 12%-EPS 20,000 1,150 2,400 1,859
Pension Fund-
EPS
10 8.33% 15,000 1,250 ZERO 541
PF Admn.
Charges
2 1.10% 20,000 220 220 220
PF Inspection
Charges-in case
of Trust
2 0.18% 20,000 36 36 36
EDLI
Contribution
21 0.50% 15,000 75 75 33
EDLI Admn.
Charges
22 0.01% 15,000 1.50 1.50 0.65
EDLI Inspection
Charges-in case
of Exemption
22 0.005% 15,000 0.75 0.75 0.33

11. Basic Pay ~ Rs. 10,000 10
A/c
No.
Rate PF/EPS/EDLI
Salary
w.e.f.
01-09-14
Member of EPS
before
01-09-2014
No Membership of
EPS before
01-09-2014
Calculation upto
31-08-2014
Employees’
Share
1 12% 10,000 1,200 1,200 1,200
Employer’s
Share
1 12%-EPS 10,000 367 367 659
Pension Fund-
EPS
10 8.33% 10,000 833 833 541
PF Admn.
Charges
2 1.10% 10,000 110 110 110
PF Inspection
Charges-in case
of Trust
2 0.18% 10,000 18 18 18
EDLI
Contribution
21 0.50% 10,000 50 50 33
EDLI Admn.
Charges
22 0.01% 10,000 1.00 1.00 0.65
EDLI Inspection
Charges-in case
of Exemption
22 0.005% 10,000 0.50 0.50 0.33

12. Effect on Companies depositing dues under PF Act on
Wage Ceiling Limit (w.e.f. 01-09-2014 Rs. 15,000/- per
month, upto 31-08-2014 – Rs. 6,500/- per month)
Refer - Slide 12 & 13
11

13. Basic Pay ~ Rs. 20,000
A/c
No.
Rate PF/EPS/EDLI
Salary
w.e.f.
01-09-14
Member of EPS
before
01-09-2014
No Membership of
EPS before
01-09-2014
Calculation upto
31-08-2014
Employees’
Share
1 12% 15,000 1,800 1,800 780
Employer’s
Share
1 12%-EPS 15,000 550 1,800 239
Pension Fund-
EPS
10 8.33% 15,000 1,250 ZERO 541
PF Admn.
Charges
2 1.10% 15,000 165 165 72
PF Inspection
Charges-in case
of Trust
2 0.18% 15,000 27 27 12
EDLI
Contribution
21 0.50% 15,000 75 75 33
EDLI Admn.
Charges
22 0.01% 15,000 1.50 1.50 0.65
EDLI Inspection
Charges-in case
of Exemption
22 0.005% 15,000 0.75 0.75 0.33
12

14. Basic Pay ~ Rs. 10,000
A/c
No.
Rate PF/EPS/EDLI
Salary
w.e.f.
01-09-14
Member of EPS
before
01-09-2014
No Membership of
EPS before
01-09-2014
Calculation upto
31-08-2014
Employees’
Share
1 12% 10,000 1,200 1,200 780
Employer’s
Share
1 12%-EPS 10,000 367 367 239
Pension Fund-
EPS
10 8.33% 10,000 833 833 541
PF Admn.
Charges
2 1.10% 10,000 110 110 72
PF Inspection
Charges-in case
of Trust
2 0.18% 10,000 18 18 12
EDLI
Contribution
21 0.50% 10,000 50 50 33
EDLI Admn.
Charges
22 0.01% 10,000 1.00 1.00 0.65
EDLI Inspection
Charges-in case
of Exemption
22 0.005% 10,000 0.50 0.50 0.33
13

15. 14
Online Provident Fund Payment
EPFO has started facility to pay EPF payment online. This facility is for those
Establishments who have net banking facility with Banks.
For more details Please visit at https://www.onlinesbi.com/prelogin/epfohome.htm

16. 15
Social Security Agreement with Czech Republic
 The Government of India has entered into an agreement of Social Security with Czech Republic w.e.f. 1st
September 2014. Social Security Agreement with Czech Republic is available at
http://www.epfindia.com/Circulars/Y2014-15/IWU_SSA_CzechRepublic_13648.pdf
SUMMARY OF ALL SOCIAL SECURITY AGREEMENTS
Sl. No. Country Assignment Period Effective Date
1 Belgium 5 Years 01 September 2009
2 Germany 4 Years 01 October 2009
3 Switzerland 6 Years 29 January 2011
4 Denmark Indian Employees sent to Denmark : 5 Years
Danish Nationals posted in India : 3 Years
01 May 2011
5 Luxembourg 5 Years 01 June 2011
6 France 5 Years 01 July 2011
7 South Korea 5 Years 01 November 2011
8 Netherlands 5 Years 01 December 2011
9 Hungary 5 Years 01 April 2013
10 Finland 5 Years 1st August 2014
11 Sweden 2 Years 1st August 2014
12 Czech Republic 5 Years 1st September 2014

17. 16