Dear Seniors, I have been working in the manufacturing industry, and our establishment has been enrolled with EPF since 2009. Currently, we (the employer) contribute to EPF based on the actual basic salary plus DA (i.e., 12% employer contribution for the actual basic salary + DA). Now, we are considering setting a limit for employer contributions (i.e., 12% employer contribution for only ₹15,000 from Basic + DA).
Example:
Current Situation:
Basic = ₹24,000
Employer Contribution = ₹2,880 (12% of Basic)
Employee Contribution = ₹2,880 (12% of Basic)
Planned Scenario with Limit:
Basic = ₹24,000
Employer Contribution = ₹1,800 (12% for ₹15,000 basic alone)
Employee Contribution = ₹2,880 (12% of Basic)
If it is possible to set the employer contribution limit, what documents do we need to submit for the same? Your support is greatly appreciated.
Regards
From India, Coimbatore
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Example:
Current Situation:
Basic = ₹24,000
Employer Contribution = ₹2,880 (12% of Basic)
Employee Contribution = ₹2,880 (12% of Basic)
Planned Scenario with Limit:
Basic = ₹24,000
Employer Contribution = ₹1,800 (12% for ₹15,000 basic alone)
Employee Contribution = ₹2,880 (12% of Basic)
If it is possible to set the employer contribution limit, what documents do we need to submit for the same? Your support is greatly appreciated.
Regards
From India, Coimbatore
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You do not need to submit any documents to reduce the employer's share of contribution. The Honorable Supreme Court has already stated in a verdict that an employer can reduce their share of contribution to the prescribed limit without violating the law.
Please also refer to the attached file and review point 7, where it is clearly mentioned.
Regards,
Dinesh Kumar
From India, New Delhi
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38Please also refer to the attached file and review point 7, where it is clearly mentioned.
Regards,
Dinesh Kumar
From India, New Delhi
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In both cases, the amounts should be equal - Rs. 1800 + 1800. The amount cannot vary. If Rs. 1800 + 2880 is required, additional documents for voluntary contribution are needed. It is best to go with Rs. 1800 + 1800. I am maintaining this for the senior personnel in my company.
From India, Chennai
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From India, Chennai
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EPF Scheme Guidelines For Implementation Of PMGKY Credit Of Employers And Employee Contribution .pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx