Dear Member
Employee monthly gross Rs.30000/- for pf contribution
employee actual basic wage Rs.15000/- and pf amount Rs.1800/-
can we reduce actual basic wage from Rs.15000/- to Rs.10000/- then pf amount Rs.1200/- it is possible as per pf norms (can we reduce pf contribution amount )
From India, Hyderabad
2Employee monthly gross Rs.30000/- for pf contribution
employee actual basic wage Rs.15000/- and pf amount Rs.1800/-
can we reduce actual basic wage from Rs.15000/- to Rs.10000/- then pf amount Rs.1200/- it is possible as per pf norms (can we reduce pf contribution amount )
From India, Hyderabad
ok sir
emp.salary gross Rs.20000/-
in case employee present basic wage 14000 (70%)and pf amount Rs.1680/- monthly
in above case can we reduce basic wage Rs.14000/- to Rs.10000/-(from 70% to 50%) automatically contribution amount will reduce (Rs.1680/- to Rs.1200/- monthly) it is possible as per norms
From India, Hyderabad
emp.salary gross Rs.20000/-
in case employee present basic wage 14000 (70%)and pf amount Rs.1680/- monthly
in above case can we reduce basic wage Rs.14000/- to Rs.10000/-(from 70% to 50%) automatically contribution amount will reduce (Rs.1680/- to Rs.1200/- monthly) it is possible as per norms
From India, Hyderabad
Once we start to pay PF on 15000/- we cannot reduce it as this will be considered as EVASION of PF by the PF Authorities
From India, Mumbai
From India, Mumbai
@vijay,
This has to be decided during Salary Structure Creation. Please maintain uniform policy in deciding Basic and other components for all employees. Suddenly you can't increase or decrease the percentage of the Basic wages.
Please don't think to act smart like this to evade PF, so that you are saving some money for your company. You/your company will get easily caught soon and liability at that time will be double or triple times of your small savings now. Also, the company's reputation will be spoiled.
If you want to do your company a favor, please follow the acts correctly or it is okay to have a consultant in this regards.
From India, Chennai
This has to be decided during Salary Structure Creation. Please maintain uniform policy in deciding Basic and other components for all employees. Suddenly you can't increase or decrease the percentage of the Basic wages.
Please don't think to act smart like this to evade PF, so that you are saving some money for your company. You/your company will get easily caught soon and liability at that time will be double or triple times of your small savings now. Also, the company's reputation will be spoiled.
If you want to do your company a favor, please follow the acts correctly or it is okay to have a consultant in this regards.
From India, Chennai
pf amount once fixed cannot be reduced , however for any further increments to employee u can keep basic same and increase other allowances , that ways company will be able to save money in future
From India, Thane
From India, Thane
I have joined a school as consolidated salary of Rs 28,000/- and every month PF deduction is Rs 3360/-(28000*12%). Now school management appointed me as regular employee and providing salary as per 7th pay, but i have appointed as U.D.C and basic pay of 25500 & 7% D.A (1785) total 27285/- and PF calculating on this amount (27285*12%= 3274) . Earlier my PF contribution was 3360/-, now it reduced to 3274/-.
My Question is if employer can reduce the PF amount as per PF Rules.
The employer should give one more increment to me to avoid less deduction of PF amount
Kindly advise accordingly.
From India, Faridabad
My Question is if employer can reduce the PF amount as per PF Rules.
The employer should give one more increment to me to avoid less deduction of PF amount
Kindly advise accordingly.
From India, Faridabad
EPF contribution for one employee was paid on Rs.22000/- for few months. Can we reduce his EPF wages from Rs.22000/- to Rs.15000/-
From India, Mumbai
From India, Mumbai
Yes, you can bring it down to 12% of Rs 15000 but not below that provided the employees agree to such reduced contribution. In Maratwada Gramin Bank case, the Supreme Court has said that an employer who has been contributing on higher salary can reduce it to Rs 6500 (Now read as Rs 15000) and this would not violate section 12 of the EPF & MP Act. The court said that the EPF authorities has no right to demand a PF contribution on amount higher than the threshold limit.
Since the previous query posted in 2018 (five years back...!) is all about government PF schemes and not the EPF & MP Act, no comment is made now.
From India, Kannur
Since the previous query posted in 2018 (five years back...!) is all about government PF schemes and not the EPF & MP Act, no comment is made now.
From India, Kannur
As per the provisions of the EPF Act, 1952, the ceiling limit of wages is Rs.15,000/-. It is upto the employer to choose to pay contribution on wages over and above the ceiling limit. Further, as per the Supreme Court guidelines in Vivekananda Vidya Mandi case, if the basic is less than the ceiling limit and the gross is higher than the ceiling limit, then you need to include all allowances which are paid uniformly to all employees. However, payments such as HRA, over time payment, shift allowance, attendance bonus etc.
From India, Madras
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF - TAKE HOME SALARY REDUCE NOW.pdf