Circular of non exempted member EPs deduct on actual basic and DA instead of 15000 - CiteHR
KK!HR
Management Consultancy
Manojkamble
Sr. Hr Executive
Vidyadhar Bhat
Consultancy In Pf

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Can i give the option to deduct on actual basic And DA instead of capping 15000 ,
I dont have any circular
Pls provide

Hi
This is to inform you that, it is a part of supreme court judgement and not any circular.

The EPS'95, as amended in 2014, has set a time limit of six months from September 2014 for opting to continue the remission of EPS contribution on actual salary basis exceeding the wage limit. But the Supreme Court in RC Gupta's matter (RC Gupta & Others vs RPFC & Others decided on 4th October 2016 ) turned down the contention of EPFO that the option for enhancing the EPS contribution is unavailable under the original EPS'95 due to limitation of time. Now the matter is back in various High Courts and Supreme Court but this point of exercise of option after the amended EPS came into vogue is not under direct consideration.
The EPF contribution is to be paid as per employer and employee mutual understanding subject to minimum payable as per Act.
As per EPF act, employer can restrict contribution to Rs. 15000/- wages.
Employer can pay higher than 15000/- towards EPF but EPS will be restricted to wages Rs. 15000/- @ 8.33% only.
Member has option to deduct at higher rate maximum to Rs. 15000 contribution p.m. (i.e. 100 % , {12% statutory + 88% voluntary}) of EPF wages.
Thanks,
Vidyadahr Bhat

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