Hi All,
Can you please tell me if an employer is paying PF @ 12% on basic salary(with out ceiling to 6500) for 3 years and then after 3 years the employer wants to keep the ceiling @6500 for PF. is it possible to reduce the contribution.
Regards,
Arthy. S
From India, Chennai
Can you please tell me if an employer is paying PF @ 12% on basic salary(with out ceiling to 6500) for 3 years and then after 3 years the employer wants to keep the ceiling @6500 for PF. is it possible to reduce the contribution.
Regards,
Arthy. S
From India, Chennai
Dear Arthy.S, The answer will be no as per EPF Act Contribution once made cannot be reduced at any point. Warm Regards C.M.Mohla
From India, Delhi
14From India, Delhi
As per P.F Scheme, an employer is not obliged to contribute on more than Rs.6500/- and hence in my view he can bring his contribution to the wage level of Rs.6500/-. Probably he may have to inform the P.F as per the procedure which you can enquire with.
B.Saikumar
HR & Labour Law adviosr
Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law adviosr
Mumbai
From India, Mumbai
Dear Arthy.S,
Please find attached herewith a copy of Judgment dated 0502.2004 to answer to your query.
Accordingly you are entitled to discontinue from the remittance of the provident fund contribution in excess of the rate prescribed by law.
Even though you are entitled to do so as above, you are advised to take consent from all affected employees. Further, according to section 9A of ID Act, no employer, who purposes to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule, shall effect such change without giving notice.
I hope your query is answered correctly.
Thanks and regards.
Keshav Korgaonkar
From India, Mumbai
Please find attached herewith a copy of Judgment dated 0502.2004 to answer to your query.
Accordingly you are entitled to discontinue from the remittance of the provident fund contribution in excess of the rate prescribed by law.
Even though you are entitled to do so as above, you are advised to take consent from all affected employees. Further, according to section 9A of ID Act, no employer, who purposes to effect any change in the conditions of service applicable to any workman in respect of any matter specified in the Fourth Schedule, shall effect such change without giving notice.
I hope your query is answered correctly.
Thanks and regards.
Keshav Korgaonkar
From India, Mumbai
Dear Arthy.S, Please find the attachment herewith. Thanks and regards. Keshav Korgaonkar
From India, Mumbai
From India, Mumbai
Hi Friends,
As per the above question i would like to also know if a person was contributing 12% PF in a company say X Company and then he changes job to Y company,when he joins the Y company can we allow him Restricted PF or he needs to be deducted 12%,is there a choice were the employee can get.,.,,.
Thanks
MS
From India, Mumbai
As per the above question i would like to also know if a person was contributing 12% PF in a company say X Company and then he changes job to Y company,when he joins the Y company can we allow him Restricted PF or he needs to be deducted 12%,is there a choice were the employee can get.,.,,.
Thanks
MS
From India, Mumbai
Dear arthy
Mr. Kargaonker is absolutely right. Pf contribution can be restricted to the statutory limit prescribed under the law subsequently also. The judgment will help you to understand the matter completely.
In one company’s case I got it implemented initially the PF Authorities were not convinced to allow the employer request but subsequently in appeal it was allowed.
Pkjain
From India, Delhi
Mr. Kargaonker is absolutely right. Pf contribution can be restricted to the statutory limit prescribed under the law subsequently also. The judgment will help you to understand the matter completely.
In one company’s case I got it implemented initially the PF Authorities were not convinced to allow the employer request but subsequently in appeal it was allowed.
Pkjain
From India, Delhi
While the emplyer is well within his right by bringing his contribution to statutory level under P.F Act, Mr.keshav Korgaonkar has also rightly alerted to the possible risk of attrcating Sec.9-A of the Industrial Disputes Act. Though the empoyer is not reducing the wages but only is limiting his contribution to the statutory level, and may not attarct item(1) of the Fourth Schedule but he may attract item (2) of the Fourth Schedule. Therefore it is prudent as suggested by Mr.keshav to either issue a notice u/Sec.9-A or take consent of the employees concerned.
B.Saikumar
Labour Law advisor
Mumbai
From India, Mumbai
B.Saikumar
Labour Law advisor
Mumbai
From India, Mumbai
I just add to what I have said in the previous post with regard to Sec.9-A that sec.9-A is attrcated if the employee inrespect of whom the contribution has been reduced by the employer is a "workman" within the meaning of Sec. 29s) of the Industrial Disputes Act 1947, other wise Sec.9-A is not attracted.
B.Saikumar
Mumbai
From India, Mumbai
B.Saikumar
Mumbai
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf