PF Contribution Rollback

prasadin21
HI Senior,
In Our Company we want to apply following things can it will be possible if not then why? :-
1) Can PF Contribution Rollback as per PF rule e.g
Suppose An employee Basic Salary -10000/- PM his PF Contribution is 1200/- but now management want PF contribution upto the ceiling limit 6500/- pm so PF Contribution 780/-
The basic idea of Management they want to increase take home salary
2) Some of the Employee want that they don't want above structure they want PF contribution on Actual basis
So can we follow both method in our organization ?
Thanks & Regards
Narendra Prasad
k_shenbagarajan
Dear Narendra,
It is based on the decision of the management whether to contribute actual Basic(basic+DA) salary or restrict to Rs.780 if the employee Basic(Basic+Da)salary is more than Rs. 6500.
The employee can do the voluntary contribution even upto 100% but employer have the option to pay Rs. 780/- or if they agree they can pay 12%.
As an organisation go with only 1 option because it will create human errors while doing the salary process in excel / spread sheet for calculation.
S C Garg
Sir,
Is there any legal bar that you cannot choose for few to contribute and for others not to contribute,
Regard
vicky_andalwade@yahoo.co.
Sir, i want to know from Shri. Shenbagarajan that is there is any provision or circular in case of PF Contribution rollback from employer. please substantiate your argument. Thanks
Gurpreet Aidhen
Dear Prasadin,
In a Company where PF contribution of both i.e. The Employee and the Employer is a part of CTC, The contribution of Employer can be on the whole 10000 as the company does not bear the cost.
But in an organization where the Employer PF contribution is not a part of CTC, The Company may contribute only upto 6500, even if the employee is contributing on 10000.
However this depends upon the Organization you are working with and the CTC breakup you have opted.
Regarding PF rollback, there is no such provision under the PF Act. Once an Employee/Employer has contributed a certain amount they cannot decrease it. Only addition is possible.
Regards,
Gurpreet Aidhen
korgaonkar k a
Dear Narendra ji & other members who responded,
You are requested to go thr' the link below to get more in detailed:
https://www.citehr.com/425140-want-c...-employee.html
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