PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Partner - Risk Management
Use factoHR and automate your HR processes
Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.
Signature studioVideo editing it have to do colurs cuttings when editing time need idea more than brain whant to. Run
From undefined, undefined
rkn61I doubt whether you can do this exercise now. Once you started by making contributions on actual wages, you can not reduce/cap wages to Rs.15000/- for making contributions of PF.
In this connection, please refer to Sec-12 of Employees Provident Fund & Misc. Provisions Act,1952
which is read as follows:-
[12. Employer not to reduce wages, etc.—No employer in relation to 10[an establishment] to which
any 11[Scheme or the Insurance Scheme] applies shall, by reason only of his liability for the payment of
any contribution to 12[the Fund or the Insurance Fund] or any charges under this Act or the 11[Scheme or
the Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to whom the
11[Scheme or the Insurance Scheme] applies or the total quantum of benefits in the nature of old age
pension, gratuity 13[Provident Fund or Life Insurance] to which the employee is entitled under the terms
of his employment, express or implied.]
Before implementing the proposed action, please check with PF authorities.
From India, Aizawl
saswatabanerjeeYou can cap the PF contribution at any time as it is the specified statutory limit in the act.
The courts have already decided on this matter.
However, if you are looking at CTC, then the action may amount changing the terms of employment and you need concurrence of the employees. Also, they effectively earn less, so you need to be aware of the Industrial Relations aspect of it, specially on the matter of disgruntled employees
From India, Mumbai