Provident Fund Documentation?

Here are some of my doubts regarding Provident Fund:

• What documentation should a company need when they want to reduce the EPF contribution of existing employees by restructuring Salary Component details? For example:

- Restricting EPF upto Rs. 6500/- limit only, which was not earlier in company,
- Reducing Basic & DA wages and allowing them some Allowances for the balance salary entitlement. (By keeping in mind sec. 12 of the Act.)

• What documentation should a company need for a fresher employee drawing Basic & DA Salary more than Rs. 6500/- limit if company doesn't want to make them EPF membership? Assuming that employees agree for the same.

Thanks & Regards,
CA Shekhar.

dear shekhar
as you have already mentioned sec 12 of PF act and which clearly states that you can not reduces wages of any existing employee .it means PF contribution of individual can not be reduced.
dear you know the section and provisions also now how u can reduce it.
however for new employees ,you can take form 11 and need not to deduct PF if there basic+DA is more than 6500/
tks
j s malik

Dear Mr. Malik,
Thank U very much for ur valuable suggestions. But again:
1) For Existing Employee: Due to Company’s ignorance & innocence, salary structure had never been designed and now if they wish, they must be allowed to do so for the betterment. I think that these must be supported by appropriate documentation.
I want to know this appropriate documentation to proof the same, if possible.
Thanks
CA Shekhar.

dear
i feel now you can not reduce basic because ignorance of law is no excuse,however in due course when there is increment u donot put anything in basic.
.tks
js malik

Hi
Can I Know My Through My Epf No. My Actual Amount Credit In My Pf A/c Is There Any Site Then Suggest Me
Ramesh Jaiswal

Hi
I Want To Know The Method Of Preparing Pf A/c Statement If Any Body Know Then Let Me Know Pls
Ramesh

Hi Sekhar,
It is not possible, the person who is drawing less than 6500/- not elgible to pf, if he is getting more than that, he is elgible to pf.
With Regards,
Ramesh.V

Dear Ramesh
This is the calculation of PF
Employee: 12% (P.F)
Employer: 3.67% Provident Fund (A/c 1) + 8.33% Pension (A/c 10) + 1.10% Admin Charges on
PF (A/c 2) + 0.50% EDLI (A/c 21) + 0.01% Admin Charges on EDLI (A/c 22)
=>13.61% on basic
* Pension (8.33% or 541/- which ever less)
Regads
Bindu

Thank U very much Mr. Malik.
Your Opinion is really good & practical... no doubt.
But, there is huge burden in company due to this ignorance reason... Now, anyhow I want to make somthing in order properly in a lawfull manner.
So, will u plz suggest me to improve the situation, or anybody... u think to refer...
Thanks,
CA Shekhar.

And Freinds, 307 views and only 1-2 responded,
NOT fair. U all learned people are requested to post your views.
It may really be very usefull for someone.
Thanks.
CA Shekhar.