Madhu.T.K
Industrial Relations And Labour Laws
Gurumtcc
Hr Executive
Jayashree Salian
Asst. Manager - Hr & Admin
+2 Others

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Dear Seniors, From when we have to implement the PF deduction on other allowance from employee salary.
You can start paying PF on gross salary (less HRA) from now itself. There is no need to wait for any more notification from EPFO because this is only a clarification of what is said in the law. If you do not start paying it on actual salary, you will have to pay it with interest and damages. It is understood that lawyers have started canvassing the employers saying that this verdict applies only to the establishments involved in the case (!!!) and there is scope for a 7A enquiry and therefore no need to pay it now.This is a marketing tactic because once you are asked to show the records by the EPF officials they will only compute the contribution as per this guidelines of Supreme Court and at that time neither your consultant nor your advocate can defend saying that the court order does not apply to you. When the definition of Basic Pay itself is the whole emoluments that an employee gets while on work or on "leave" how can you say that salary means that basic salary that you have fixed. If that is the case, when you take leave you should be paid only rate as per basic pay but you are paid salary for that leave day considering the whole salary.
https://madhu-t-k.blogspot.com/2019/...ary-and_6.html

Thanks for quick reply , so that I can deduct the PF as per the judgement.
Dear Seniors, As per SC Judgment related to PF contribution, Kindly share Salary structure. Thanks Shrikant Singh
Dear All Please help to new salary structure finalization after increment and supreme court notification.
Dear all Kindly share new salary structure after new pf contribution.
Can we deduct employee contribution towards P F from back dated , i mean we wold like to go with the direction of supreme court verdict with effect from April -2019,now from April to June Salary and wages are already paid ,
under this circumstances can we deduct the differential employee contribution towards P F ? OR is there any rule or verdict that we can not recover the amount backdated
Regards
R K Dixit

So far there has been no direction from the EPFO in this regard. If you were not served a notice u/s 7A of the Act, you need not go to a previous period but you can start deducing and contributing the PF on gross from the coming month onwards. delaying further may invite complications in future. You can pay the old balance as contribution on omitted wages once the EPFO releases an official notification.
Thank you very much sir, i do agree with you and we are going to implement with this month itself only, and at the same time suppose we pay it wef -April -2019,under this situation i need clarification whether we can recover the deferential P F amount from employee or not
regards

Legally, we cannot recover the difference amount from the employees. But the EPFO will not have any objection nor do have any say in it if you recover it from the employees. In one case, I have had a discussion with the employees and made a settlement that whatever the employer pays in addition to their contribution already paid shall be recovered from the employees in installments along with their current month's contribution. Since that company is a new company started in the middle of 2018, the arrears will be less and when I advised that we should contribute the difference starting from the date of coverage, the management agreed to it and then I had a discussion with the employees and they agreed that over 13 months, their old amount can be recovered. However, the payment is still pending because some practicing advocates intervened and told them that it is not required and so long as an enquiry under section 7A is initiated by the EPFO, no need to pay it! Well, good. When such a suggestion comes from the advocates, it is natural, that the employers will hold it.

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