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pbskumar2006
590

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.
Regards,
Dr. PBS KUMAR

From India, Kakinada
Srinath Sai Ram
609

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, 296 views)

suresh2511
246

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.
Regards,
Suresh

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, 131 views)

rainbow123
6

The said 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, is clear about the said subject.
If few senior managers & Directors of company pay their contribution to EPF @ 12% on their EPF wages, now they don't want to pay contribution on their EPF wages & they have started paying contribution on Rs. 15,000/- (EPF ceiling) @ 12% = Rs. 1800/-
Can an Enforcement Officer of EPFO ask the employer to pay contribute as per earlier rate?
Whether the attached notification became applicable to this case?

From India, Mumbai
suresh2511
246

Shri P K Udgata, Additional Central Provident Fund Commissioner (Compliance), notified in his circular dated May 27, 2014, As a result, all Regional Provident Fund Commissioners-in-Charge of Regional Sub-Regional offices are directed not to compel companies to contribute in excess of the statutory wage ceiling for their employees. Employees may, however, contribute over their wage maximum if they so want, according to the restrictions outlined in Paragraph 26 (6) of the Employees' Provident Fund Scheme, 1952. According to this section, for provident fund contributions on higher pay, a joint choice of employee and employer must be filed and accepted by EPFO. As such, the PF Enforcement Officer cannot compel the employer to contribute on salaries that are higher than the PF ceiling.

Regards,

Suresh

From India, Thane
rainbow123
6

Thank you Mr. Suresh.
Yes I have checked with this circular as well SC Judgment, but have anyone experience this kind of situation after 2014?
Please share if anyone had experience the same.
Thanks once again to all valuable inputs.

From India, Mumbai
Kanaiya.darji23
Respected sir, Is any declaration required from employee to reduce the PF contribution from higher (Actual basic) to statutory limit? If yes then pls share the format. Regards, KD
From India, undefined
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