Dear friend,
I have implemented the change of limiting the PF contribution on basic of Rs.6,500/-. Prior to my joining in the organisation, the employees were covered 12% of basic (actual). At the time of increments, I realised most of the employees look at take home salary rather than PF savings. I suggested to the management to make two categories of employees. Managerial and non-managerial. Managerial cadre with 12% of actual basic (to take care of Income Tax under 80 C) and non-managerial with PF limit of Rs.6500/- or actual whichever is less (to increase the take home without disturbing the agreed CTC package). In one of our bi-monthly staff meeting, I got the consent of the staff and I met the Regional PF Commissioner personally and took his approval for implementing this change. This scheme is running smoothly now. I have a better leverage at the time of salary negotiation/increments as well as employees are happy that their take home is attractive. Win-win situation.
Regards
Bhavan