Dear Experts,
In one of the organizations, deducting a higher contribution of EPF, i.e., actual salaries up to four months. After that, the management has restricted the contribution actual ceiling limit of EPF, i.e., Rs. 15,000/- from both the Employee and Employer contributions. Is it permissible? Please comment on this.
Regards,
Dr. PBS KUMAR
From India, Kakinada
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592In one of the organizations, deducting a higher contribution of EPF, i.e., actual salaries up to four months. After that, the management has restricted the contribution actual ceiling limit of EPF, i.e., Rs. 15,000/- from both the Employee and Employer contributions. Is it permissible? Please comment on this.
Regards,
Dr. PBS KUMAR
From India, Kakinada
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Dear Mr. Kumar,
It is permitted. It appears from your post that for about 4 months, EPF contributions were made on the actual Basic+VDA earned. Subsequently, EPF contributions were restricted to the present statutory limit, i.e., Rs 15,000/-
Please peruse circulars from EPFO to this effect.
From India, New Delhi
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It is permitted. It appears from your post that for about 4 months, EPF contributions were made on the actual Basic+VDA earned. Subsequently, EPF contributions were restricted to the present statutory limit, i.e., Rs 15,000/-
Please peruse circulars from EPFO to this effect.
From India, New Delhi
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Dear Dr. PBS Kumar,
There is a judgment of The Hon'ble Supreme Court of India dated 9.9.2011 in the matter of Marathwada Gramin Bank Karmachari Sanghatana and Another v/s. Marathwada Gramin Bank and Others. The ruling in para 27 is as follows: (Copy attached)
"The establishment is under an obligation to pay Provident Fund to its employees in accordance with the provisions of the Statutory Scheme. The establishment cannot be compelled to pay the amount in excess of its statutory liability."
Therefore, the management can restrict the PF contribution to the Statutory Ceiling Limit of INR 15000/-. Moreover, it requires the employer's consent to pay PF contribution over and above the statutory limit.
Regards, Suresh
From India, Thane
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There is a judgment of The Hon'ble Supreme Court of India dated 9.9.2011 in the matter of Marathwada Gramin Bank Karmachari Sanghatana and Another v/s. Marathwada Gramin Bank and Others. The ruling in para 27 is as follows: (Copy attached)
"The establishment is under an obligation to pay Provident Fund to its employees in accordance with the provisions of the Statutory Scheme. The establishment cannot be compelled to pay the amount in excess of its statutory liability."
Therefore, the management can restrict the PF contribution to the Statutory Ceiling Limit of INR 15000/-. Moreover, it requires the employer's consent to pay PF contribution over and above the statutory limit.
Regards, Suresh
From India, Thane
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The said judgment of The Hon'ble Supreme Court of India dated 9.9.2011 in the matter of Marathwada Gramin Bank Karmachari Sanghatana and Another v/s. Marathwada Gramin Bank and Others is clear about the said subject.
If few senior managers & Directors of the company pay their contribution to EPF @ 12% on their EPF wages, now they don't want to pay contributions on their EPF wages & they have started paying contributions on Rs. 15,000/- (EPF ceiling) @ 12% = Rs. 1800/-
Can an Enforcement Officer of EPFO ask the employer to pay contribute as per the earlier rate? Whether the attached notification became applicable to this case?
From India, Mumbai
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If few senior managers & Directors of the company pay their contribution to EPF @ 12% on their EPF wages, now they don't want to pay contributions on their EPF wages & they have started paying contributions on Rs. 15,000/- (EPF ceiling) @ 12% = Rs. 1800/-
Can an Enforcement Officer of EPFO ask the employer to pay contribute as per the earlier rate? Whether the attached notification became applicable to this case?
From India, Mumbai
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Shri P K Udgata, Additional Central Provident Fund Commissioner (Compliance), notified in his circular dated May 27, 2014. As a result, all Regional Provident Fund Commissioners-in-Charge of Regional Sub-Regional offices are directed not to compel companies to contribute in excess of the statutory wage ceiling for their employees. Employees may, however, contribute over their wage maximum if they so want, according to the restrictions outlined in Paragraph 26(6) of the Employees' Provident Fund Scheme, 1952. According to this section, for provident fund contributions on higher pay, a joint choice of employee and employer must be filed and accepted by EPFO. As such, the PF Enforcement Officer cannot compel the employer to contribute on salaries that are higher than the PF ceiling.
Regards,
Suresh
From India, Thane
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Regards,
Suresh
From India, Thane
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(Fact Checked)-The user reply is correct based on the Employees' Provident Fund Scheme, 1952, which allows employees to contribute over the wage ceiling voluntarily. No amendment needed. (1 Acknowledge point)
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Thank you, Mr. Suresh. Yes, I have checked this circular as well as the SC judgment, but has anyone experienced this kind of situation after 2014? Please share if anyone has had the same experience. Thanks once again for all the valuable inputs.
From India, Mumbai
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From India, Mumbai
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Respected sir, Is any declaration required from employee to reduce the PF contribution from higher (Actual basic) to statutory limit? If yes then pls share the format. Regards, KD
From India, undefined
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From India, undefined
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(Fact Checked)-The declaration from employees to reduce PF contribution is not required. The employer must follow the EPF Act's statutory limits without employee consent. Thank you for your question! (1 Acknowledge point)
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SC Judgment-No obligation to excess contribution than Statutory Limit.docx
Provident Fund - Excluded Employee - Definition.pdf
CiteHR.AI
(Fact Checked)-The user's reply is correct based on the Supreme Court judgment in the case of Marathwada Gramin Bank Karmachari Sanghatana and Another v. Marathwada Gramin Bank and Others, dated 9.9.2011, stating that the management can restrict PF contribution to the statutory ceiling limit of INR 15,000. (1 Acknowledge point)