The global solution for payroll professionals, combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come...
By Maggy Boone
Sept. 9—Employers in India could be paying more in social taxes for workers in September than in August, according to a Gazette of India notice published Aug. 22. The maximum wage for which Employee Provident Fund (EPF) contributions are made within the social security program has been increased to 15,000 rupees ($247.504) per month from 6,500 rupees ($107.25) per month as of Sept. 1, the notice said. Previously, employees with wages in excess of 6,500 ($107.25) rupees per month could voluntarily participate in the EPF. As of Sept. 1, salaried employees earning up to 15,000 rupees ($247.504) per month must participate in the EPF, and those with excess amounts can voluntarily contribute.
Employers in India with 20 or more employees contribute 3.67 percent of total wages up to the maximum to fund the EPF and employees contribute between 10 and 12 percent of total salary, depending on their sector of work, to the EPF.
All employers in the organized sector with 20 or more employees are required to make EPF contributions.
To contact the reporter on this story: Maggy Boone at email@example.com
To contact the editor responsible for this story: Michael Baer at firstname.lastname@example.org
The release in the Indian Gazette can be found in Hindi and English at http://labour.nic.in/upload/uploadfiles/files/latest_update/what_new/540064296a0b2IncreaseinwageCeiling.pdf
More information on payroll issues in India can be found in the India country primer.
Notify me when updates are available (No standing order will be created).
Put me on standing order
Notify me when new releases are available (no standing order will be created)