Government has notified Provident Fund Limit from existing 6500 to 15000 per month

Before starting to write about this article, I would like all of you to refer following article

I had written about it on October 2013 and now almost a year after, finally government has amended the PF Act. 
As per the this notification, now the PF limit has been raised from monthly gross salary of Rs. 6500 to Rs. 15000. 
The coverage is on Basic + DA (Dearness Allowance) salary of an employee. 
Date of effect: This will be applicable from September 01, 2014 i.e. from next month. This means, now you need to cover all employees whose monthly basic salary is upto Rs. 15000/-
This will have several implication including, now you have to cover those employees who were exempted till today. If your organisation has made employer contribution also part of the CTC, then you may need to restructure such employee's salary. Further, there will be deduction from salary too. For example, if an employee has basic salary of Rs. 15000/-  per month, now that employee will loose Rs. 1800 salary per month. 
This may lead to employee dissatisfaction and it will be difficult to convince those people who are not interested for PF contribution.

Organisation is also going to get financial hit.
Suppose if around 100 employee had been exempted so far from the PF from your organisation, now you need to shell out extra money for them. Say the average basic salary of employee is per month Rs. 10000, the hit for the organisation will be around 1262 per employee. So the additional cost for 100 employee will be 126200/- Consider Rs. 120000 additional if employee is not willing to bear the cost. 
It is good for employee because this give them a sense of financial security for future and who could not save the money.

You can download notification from
all questions are welcome. 
Govind
Mumbai
August 29, 2014

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