Dear Experts,
In one of the organisation deducting higher contribution of EPF i.e actual salaries up to four months after that, the management has restricted the contribution actual ceiling limit of EPF i.e. Rs. 15000/- from both the Employee and Employer contributions . Is it permissible ??.
Please comment on this.

From India, Kakinada
Dear Mr Kumar, it is permitted.It appears from your post that for about 4 Months EPF Contribution was made on actual Basic+VDA Earned.Subsequently, EPF Contribution restricted to present Statutory Limit i.e Rs15,000/-
Please Peruse Circulars from EPFO to this effect

From India, New Delhi

Attached Files (Download Requires Membership)
File Type: pdf Employers have no obligation to Pay EPF Contribution above Statutory Limit.pdf (1.17 MB, 195 views)

Dear Dr. PBS Kumar,
There is a Judgment of The Hon'ble Supreme Court of India dated 9.9.2011 in the matter of Marathwada Gramin Bank Karmachari Sanghatana and Another V/s. Marathwada Gramin Bank and Others. The ruling in para 27 is as under: (Copy attached)
"The establishment is under an obligation to pay Provident Fund to its employees in accordance with the provisions of Statutory Scheme. The establishment cannot be compelled to pay the amount in excess of its statutory liability."
Therefore the management can restrict the PF contribution to the Statutory Ceiling Limit of INR 15000/-. Moreover it requires employer's consent to pay PF contribution over and above statutory limit.

From India, Thane

Attached Files (Download Requires Membership)
File Type: pdf SC_Judgement_PF_above_15000_is_not_mandatory_Marathwada_gramin_bank.pdf (3.30 MB, 87 views)

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