Salary & Payroll FAQ
Key guidelines covering modern Indian payroll compliance.
What is the revised ₹25,000 EPFO wage ceiling?
The statutory wage ceiling under EPFO has been revised to ₹25,000 per month. Employees drawing wages up to this threshold are mandated to receive comprehensive social-security coverage under EPF, EPS, and EDLI.
What is the 50% Wage Code Rule?
Basic Salary must constitute at least 50% of the Gross Salary, ensuring robust baseline contributions toward retirement plans and future labor code frameworks.
How does the ₹25,000 ceiling affect Employer PF calculations?
When set to Capped Mode, employee and employer PF contributions are calculated at 12% subject to a maximum wage ceiling limit of ₹25,000 (equaling a ₹3,000 cap contribution share).