Recent Amendments Of PF

Dear Seniours
It was hard from the news that the calculation of PF now will be based upon the Gross salary. Can any one confirm the News?
Can any one provide me the circular and what shall be implication of the E-Return Tool for this amendment.
Thanks & Regards
Alin Ganguly

Dear Mr. Alin Ganguly,
Please refer to the discussins had earlier in this forum. You may not have to get worried as the ceiling limit has not yet changed or there is no any alteration ammended from the circular. Besides we need to wait until we get any info on this issue. Until then PF would remain with the same 6500/- limit.
CiteHR Links: https://www.citehr.com/442878-pf-con...llowances.html
https://www.citehr.com/442860-pay-mo...er-2012-a.html

There is nothing new as already it has been held by the Honble S C that any allowance paid uniform ally is subject to PF deduction. Otherwise also various High Courts have given different judgments on such issues and latest matter is still pending before the Hon,ble Sup.Court and the things will take the final shape after outcome of this case.

On the other hand, the employer is bound to deduct and deposit PF due as per statutory provisions only.The ceiling is still at Rs.6500 only. If an employee want to contribute on higher salary he can do so only with the consent of his employer but who is not bound to deposit his share on such increased amount.

Again, if the employer want to restrict the ceiling upto 6500, he can do so, if he is contributing on higher salary, he can reduce but only with the permission of RPFC .

However,CPFC has given a big relief to the employers by streamlining the working of officers concerened whereby enquries will be held only when found from documents on record, for a period of 7 years in normal cases, only after serving a notice, supplying basis for enquiry and only in respect of identifiable employees etc etc.

A.K.Chandok

RPFC (Retd.)

<link no longer exists - removed>

A.K.Chandok

RPFC (Retd.)

<link no longer exists - removed>

Hi Members,
I have a question on the cealing of 6500 Rs for PF.
Does this mean anybody with a basic salary of 6500 Rs does not have to contribute towards PF ?
Thanks.

pls clarify that an employee whose gross salary is above Rs.20,000/- is deduction of Pf mandatory or employee choice

Employee whose Basic + DA Salary is more than Rs.6500/- have the following options:
E.g : Basic + DA Salary : Rs. 10,000/-
1. Avail PF benefit upto Rs.6500/-
2. Avail PF benefit on whole of Basic + DA Salary i.e Rs. 10,000/-
3. Can opt for exemption from the PF scheme, while joining the organization.

PROVIDENT FUND CIRCULAR KEPT IN ABEYANCE : LABOUR MINISTER
"Union Labour and Employment Minister Mallikarjun Kharge on 13th December, 2012 said that the Circular November 30th, 2012 pertaining to Guidelines for Quasi-judicial proceedings under section 7A of the EPF&MP Act, 1952 issued by the EPFO on the inclusion of certain allowances etc. for calculating Provident Fund contribution is to be kept in abeyance. So the status quo will continue."
I have received the above extracts from Labour Law Reporter, Delhi.

Yes sir, it is correct that this has been reported in the recently recieved mail by me from LLR.
Chandok AK

Hi shri Chandok ji
Sir,
can you give me the judgement of hon' ble supreme court which has held that allowance which are paid uniformely comes under the defination of basic wages
thanks
regards

Hi members
A guide line has been published in news papers on 30th nov'12 by CPFC regarding quasi judicial under section7A to all his REFC. In the above said guide line CPFC advise to all REFC office if any allowance paid uniformly that will be cover under PF contribution.on the basis that allowance PF contribution will be calculating but this order is kept abeyance by the Union labour & Employment minister .
Regards