If an employer fails to comply with the EPF Act 1991 and KWSP 1991 Rules, they will be subjected to certain penalties which are: EPF Dividend Calculation: EPF invests in diverse approved investment portfolios so that the members receive yearly dividends. The EPF guarantees a minimum 2.5%...
Calculation of Interest on EPF It is important to note that even if the interest on EPF is calculated on a monthly basis, it gets deposited to the employee’s EPF account annually. Let’s understand how interest is calculated on EPF with the help of an example- Suppose that an employee, ...
What are the contributions towards long-term and retirement benefits such as Provident fund, superannuation fund, and, Gratuity? Variable payouts such as performance bonus, variable pay, and gratuity. Stock Options: ESOPs, or, Employee Stock Options are the other incentives offered. Here, the compa...
Note that Rs.15,000 is the ceiling under the EDLI scheme for the purpose of this calculation even if your basic salary exceeds this amount. The minimum payable will now be Rs 2.5 lakh while the maximum will be Rs 6 lakh. Let us assume that Mr.A’s salary (Basic+DA) at the time ...