Dear All,
Please solicit the EPF Contribution for the following case:
Suppose if an employee's basic salary is Rs.6500 for the month of may 2012 and his basic salary has been increased to Rs.7500 by June 2012.
If the basic salary for the same employee is revised as Rs.6500 for the very next month. After having contributed to EPF for Rs 7500 for the month of June-2012 can the contributions be changed back to Rs. 6500 from July-2012? Kindly advice on the EPF contributions for the upcoming months and guide this case.
Regards
Vijay
From India, Tiruchchirappalli
Please solicit the EPF Contribution for the following case:
Suppose if an employee's basic salary is Rs.6500 for the month of may 2012 and his basic salary has been increased to Rs.7500 by June 2012.
If the basic salary for the same employee is revised as Rs.6500 for the very next month. After having contributed to EPF for Rs 7500 for the month of June-2012 can the contributions be changed back to Rs. 6500 from July-2012? Kindly advice on the EPF contributions for the upcoming months and guide this case.
Regards
Vijay
From India, Tiruchchirappalli
Hi !!!
Greetings !!!!!!!!!!!!
The contribution will definitely change cause it depends on your basic. 6500 criteria is for the pension calculation that set. other wise your PF will deduct on your actual basic.
Regards,
Ashwin.
From India, Pune
1Greetings !!!!!!!!!!!!
The contribution will definitely change cause it depends on your basic. 6500 criteria is for the pension calculation that set. other wise your PF will deduct on your actual basic.
Regards,
Ashwin.
From India, Pune
Although Section 12 of EPF&MP Act, prohibit Employer to reduce wages by only reason to pay contribution. But Rs 6500/- is a threshold limit and Employer can restrict contribution upto Rs 6500. Contribution over and above Rs 6500/- shall be with joint consent of Employee and Employer.
In this Case you can reduce basic wages to 6500/-. because you are being complied with requirement of the Act in all months, and even you have also not taken Employee consent for this purpose.
Regards
Legal & Compliance Consultant
In this Case you can reduce basic wages to 6500/-. because you are being complied with requirement of the Act in all months, and even you have also not taken Employee consent for this purpose.
Regards
Legal & Compliance Consultant
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