What is the difference between "ceiling-based" and "actual-wage-based" PF contribution, and does the wage ceiling revision change that structure?

Created by Product Content Team, Modified on Fri, 18 Sep at 4:46 PM by Product Content Team


PF contributions continue to fall into the same two categories as before:

  • Ceiling-based contribution: computed on the statutory PF wage ceiling (previously ₹15,000, now ₹25,000), for employees/employers who restrict contributions to the ceiling.

  • Actual-wage-based contribution: computed on full actual wages, for employees/employers who contribute above the ceiling.

Only the ceiling value changes; the contribution methodology and category structure are unaffected by this revision.


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