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I head a 15 member team Management Consulting organisation in Chennai. we are enrolled with PF and been remitting the same regularly. In one of the recent audits, the PF inspector made a recommendation for collecting the PF on the full salary of the employees and not just on Basic salary alone. In addition to the same he also raised a demand to pay the PF on the differential salary for the last 3 years covering the employees who left the organisation over the last 3 years. Almost all the employees have withdrawn their PF amounts and closed the accounts. we have disputed the decision taken by the Inspector and been attending the hearing over the last few months in PF office.
we would like to know if any Lawyers with expertise on Labour Laws are available on Cite forum and if so, we would be interested in seeking their Legal Opinion for the same.
Early responses appreciated
Rama Venugopal

From India, Chennai
Please clarify what is the full salary. If you have been paying it out of basic salary which is Rs 6500 or above, then the EPF has demanded it wrongly because as per Supreme Court verdict in Maratwada Gramin Bank's case, the EPFO has no right to demand contributions on salary exceeding Rs 6500.
Now if the basic salary has been less than Rs 6500 and you have been contributing accordingly, then also the decision whether the other components of salary would qualify for PF contribution is still to be taken and the Apex court is still to come out with a final word on it. Therefore, the matter is kept in abeyance.

From India, Kannur
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