Saswatabanerjee
Partner - Risk Management
Prathapsvumba
Hr Executive
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Pranab.kumar
Administration & Hr
Rajeev_M
Service
+4 Others

Thread Started by #Rajeev_M

Hi...I have recently joined an organization and In that organization they have a policy of deducting employer PF on 15000 @12%. Since My basic salary is more than 15000 and I want PF employer contribution to be on 20000 @12% and similar amount as my contribution. Now my employer is ready to have my contribution as 12% of 20000 but not ready to have employer contribution on 20000. The reason given is that while registration of PF account, they choose option to deduct 12% on 15000 hence it can't be changed now.
One more point worth noting is that my CTC includes employer contribution as well and I'm ready to have reduced take home salary.
I want to understand is it true that employer can't change. If not how to get it modified.
Thanks
Regards
12th August 2015 From India, Bangalore
Opt for Voluntary PF (VPF), may be this is the best thing you can do and it will be credited directly to PF account only and not to pension scheme etc
12th August 2015 From India, Bangalore
Dear Mr. Rajeev
For a EPF member with a salary of more than Rs. 15000, the statutory contribution to PF is Rs. 1800. If employee and employer wish contribution may be on actual salary; which is not statutory but optional.
As Mr. Yugender Reddy Gavini posted, you may contribute voluntarily as you wish.
Abbas.P.S
12th August 2015 From India, Bangalore
Your employer is not bound to contribute on actual earnings, but limited to 15,000 only. However you may contribute on actuals if you wish.
Adding to the above query, I want to know whether you someone can revert to earlier contribution levels , even if their earnings cross 15,000 limit after they will have exercised the option of contributing on actual earnings. Somebody please clarify.
12th August 2015 From India, Kolkata
Employer’s contribution of 12% of salary above Rs 15000/-pm is not a statutory obligation but an option for employer.So your employer is right.
12th August 2015 From India, Thiruvananthapuram
Yes, either the employer or the employee can stop or reduce his voluntary contributions. The law requires that 12% of basic and da be paid to a maximum of ₹1800. Beyond that it's on the wish and fancy of each individual.

12th August 2015 From India, Mumbai
even if your salary is on CTC, the law does not allow reduction of gross salary to pay for PF. therefore the employer can not increase his contribution and bring your take home down. You can ask for the change in your next appraisal. Or simply increase voluntary contribution.

12th August 2015 From India, Mumbai
Dear Rajeev,
There is no obligation for the employer to give 12 % on 20000/- as the ceiling limit is 15000/- as per the act. Only for the employee contribution it may on actual basic (20,000 your case) or on ceiling limit-15000/-.
CTC includes employer contribution also, nothing wrong in it. Even you are ready to get reduced take home salary, there is no obligation for employer to contribute 12% on 20000/-.
Hope I clarified your doubt. Please let me know if you require any other clarification.
-Prathap
Senior Executive-HR
Narayana Health
8884291530
13th August 2015 From India, Madras
Dear Rajeev,
Warm greetings !!!
I am agree to Mr. Saswata Banerjee.
Opt for VDPF (Voluntary deduction of PF) on your part only. Employer contribution restricted to Rs. 1800/- only.
Please let me know if you need any further information in this regard.
Regards,
Pranab chakraborty
9404384433
13th August 2015 From India, Mumbai
Dear Saswata ji,
With due respect to you Sir, I have not understood above cited quote of you. I will be thankful if you elaborate the same.
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13th August 2015 From India, Mumbai
while employer is within his right to restrict his contribution on Rs. 15000/- only, what has been included as employer's contribution to PF in your CTC? If it is on Rs. 15,000/- as the employer is now deducting you do not lose on that count. Please check.
A S Bhat
18th August 2015 From India, Pune
Dear sir , My Salary 16500/- but my basic + da is less than 15000 is it mandatory for me to deduct the EPF ???? Regards Sukh Arora
2nd November 2016 From India, Amritsar
Dear Team,
My current salary structure is below so please advice it's corrected or not.
because i working in Payroll department and i need to correct all allowances.
Please advice to us.
BASIC HRA Conveyance Allowance LTA Special Allowance Business Development Allowance Personal Pay Performance Pay Vehicle Allowance Medical Relocation Allowance Monthly Gross
5715 3250 1500 1000 110 0 12650 7079 0 1500 0 32804
27th March 2019 From India, Gurgaon
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