If you deduct PF on 6500 from the beginning it is valid in case Basic is higher than 6500, But if you are deducting on Higher basic earlier or till now & if you wish to reduce, it's not permissible by Act. Pls. refer section wages can not be reduced.
From India, Pune
2From India, Pune
It is though not advisable to reduce PF contribution as seen in the case of Rajan, but one can do so by an application to the EPF office though your employer.
From India, Moradabad
From India, Moradabad
Dear Mr.Rajan, You can start deductions on ceiling limit of PF Wage i.e.Basic+DA at Rs.6,500/- for new employees but cannot change in the middle as per EPF&Misc Act 1952
From India, Hyderabad
From India, Hyderabad
By reducing the employers contribution to 12% of 6500 from that of a higher wages the employer is not reducing wages , attracting section 12 of the EPF Act.Employer can limit his contribution on 6500 only.Pl see the SC decision in 2011 in the case of Marathwada gramin bank.
But sec 9A of ID Act shall be complied with
Varghese Mathew
From India, Thiruvananthapuram
But sec 9A of ID Act shall be complied with
Varghese Mathew
From India, Thiruvananthapuram
Yes it is possible....... BUT its possible when between management and union wage agreement time only.
1 ) excepted Both and signed by both
2 ) When date of signed then will not increased . previous amount will be continue but not increased.
Ex-- previous Rs 900/- p.m ,present also 900/- continue. (It is above than pf norm 6500/-
From India, Hyderabad
1 ) excepted Both and signed by both
2 ) When date of signed then will not increased . previous amount will be continue but not increased.
Ex-- previous Rs 900/- p.m ,present also 900/- continue. (It is above than pf norm 6500/-
From India, Hyderabad
I fully agree with Mr. Sankaran, - Here this is applicable to Mnfg. industries, in the email posted by advise seeker, it is not mentioned where he is in service sector industry of mnfg.
Also, if all employees are agree to the change with condition that, CTC should not be impacted, by reducing PF contribution on Rs6500/- employer ultimately reducing financial liabilities, in such scenario, employee can ask the increase of salary in proportion to the difference of amount by reduced by employer, by decision of deduction of PF on Rs 6500/-
For. E.g. Rs. 10,000/- Basic , employers share of contribution will be Rs.1200/-, instead due to Rs6500/- it will be Rs.780/- , hence Rs.420 must be added PM in some salary head.
Benefits - Net take home salary will be increased.
Disadvantage - Retirals saving will be reduced and Tax deduction will be high.
regards,
Vipul Rana
From India, Thana
Also, if all employees are agree to the change with condition that, CTC should not be impacted, by reducing PF contribution on Rs6500/- employer ultimately reducing financial liabilities, in such scenario, employee can ask the increase of salary in proportion to the difference of amount by reduced by employer, by decision of deduction of PF on Rs 6500/-
For. E.g. Rs. 10,000/- Basic , employers share of contribution will be Rs.1200/-, instead due to Rs6500/- it will be Rs.780/- , hence Rs.420 must be added PM in some salary head.
Benefits - Net take home salary will be increased.
Disadvantage - Retirals saving will be reduced and Tax deduction will be high.
regards,
Vipul Rana
From India, Thana
Dear Friends,
Out of the above postings, Mr. Kapil is absolutely right. Contribution on beyond ceiling limit is the option of the employer. Statutory obligation is only on actual salary upto ceiling limit.Whether previously contributed beyond ceiling limit or not is not a matter.
I know one case regarding the Milk Marketing Federation Ltd under the Co-operative sector in Kerala. Earlier they have contributed on actual salary beyond ceiling. But audit objection was raised as the statutory obligation is only on ceiling limit and susequently they changed to restrict on ceiling limit. They didn't find any practical difficulty to reduce contribution.
Abbas.P.S
From India, Bangalore
Out of the above postings, Mr. Kapil is absolutely right. Contribution on beyond ceiling limit is the option of the employer. Statutory obligation is only on actual salary upto ceiling limit.Whether previously contributed beyond ceiling limit or not is not a matter.
I know one case regarding the Milk Marketing Federation Ltd under the Co-operative sector in Kerala. Earlier they have contributed on actual salary beyond ceiling. But audit objection was raised as the statutory obligation is only on ceiling limit and susequently they changed to restrict on ceiling limit. They didn't find any practical difficulty to reduce contribution.
Abbas.P.S
From India, Bangalore
Mr. Ranjan.
I fully agree with Mr. Shankaran , however you can implement the suggested changes for new employee whose basic is more than 6500 /- and the amount of 885 /- employer contributions is including administrative charges i.e. 780 + 1.61 % .
Thanks.
Deepak M.
From India, Thana
I fully agree with Mr. Shankaran , however you can implement the suggested changes for new employee whose basic is more than 6500 /- and the amount of 885 /- employer contributions is including administrative charges i.e. 780 + 1.61 % .
Thanks.
Deepak M.
From India, Thana
Dear All
There is a judgement pronounced recently by Gujarat High court that says : • Employer’s share to EPF contribution can be reduced to Rs.6,500. Gujarat . High Court , # 806.
complete details on the same are awaited but guess this will but and end to the ambiguity on whether EPF contributions can be reduced back to the statutory ceiling requirement of INR 6500/- as provisioned in EPF even thou earlier contributions were higher then 6500/-
Best regards
Vaibhava Mahamunkar
From India, Mumbai
There is a judgement pronounced recently by Gujarat High court that says : • Employer’s share to EPF contribution can be reduced to Rs.6,500. Gujarat . High Court , # 806.
complete details on the same are awaited but guess this will but and end to the ambiguity on whether EPF contributions can be reduced back to the statutory ceiling requirement of INR 6500/- as provisioned in EPF even thou earlier contributions were higher then 6500/-
Best regards
Vaibhava Mahamunkar
From India, Mumbai
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.
EPF - Pension contribution is zero WHY.jpg
Analysis on SC's judgment on EPF Contribution on Spl.Allow.docx
Expat PF Excluded Employees Contribution & No Due Certificate Clarification.p df