Dear Seniors,
At present, we have fixed the basic salary at 60%, and in October 2022, we increased the salaries of the employees. However, in the case of one of our employees, we made a mistake and increased his basic salary by 70% instead of 60%. We also paid his EPF contribution as per the increased basic pay. So I want to know, can we reduce his salary from 70% to 60% now? If yes, then can the Employees Provident Fund Department have any objection to this?
Please guide on what we can do in this matter.
Thank You
From India, Patiala
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3At present, we have fixed the basic salary at 60%, and in October 2022, we increased the salaries of the employees. However, in the case of one of our employees, we made a mistake and increased his basic salary by 70% instead of 60%. We also paid his EPF contribution as per the increased basic pay. So I want to know, can we reduce his salary from 70% to 60% now? If yes, then can the Employees Provident Fund Department have any objection to this?
Please guide on what we can do in this matter.
Thank You
From India, Patiala
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Without knowing what the amounts of your basic salaries constitute, we are unable to give a reply. If your 70% of salary, i.e., PF qualifying salary, is less than or equal to Rs 15,000, then you cannot reduce it to 60%. At the same time, if this 70% is already above Rs 15,000, you can reduce it to Rs 15,000 and start contributing PF on that basic, i.e., Rs 15,000. Please revert.
From India, Kannur
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From India, Kannur
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EPF ON LINE REGN. USER MANUAL.pdf