Provident Fund Contribution

Dear Seniors
We have a standard practice to deduct 12% of entire basic salary as EPF from all of our employees and the same amount is matched by the company as Employer PF.
One of our employees, who is getting basic salary INR 100,000 per month and contributing INR 12,000 per month as EPF, now wishes to contribute PF on the maximum basic salary of INR 6, 500 (i.e. INR 780 ) as defined under the Act.
Request you to kindly advise me on following;
1) Is it possible to limit his contribution on 6500 now & when the person has been contributing on higher basic salary previously?
2) If yes, can we follow this practice for some of selected employees if they desire to do so?
Thanks
Santosh Mishra

Hi Santhosh,
There is limit of 6500/- because its certainly helpful to management other wise the cash outflow will increase. its management wish if they wants to pay more than that also they can. but you have to from the employer end also. you can practice and deduct 780 those who are getting more that also.

The law requires you to pay 12% of salary to pf subject to a maximum salary of 6500
If you are deducting on full amount, that is voluntary (both on employer and employee)
So, there should be no problem if some employees want you to deduct and deposit only the statutory maximum

Dear santosh ji,
Once company has contributed the 12% of basic salary i.e.100000/- can not be withdrawn the such benefit of employess. For more clarification contribution will be in account as given below:
A/c No.01 : 12000.00+11486.00=23220.00
A/c No.10 : 541.00
A/c No.02 :1100.00
A/c No.21 :500.00
A/c No.22 :10.00
Regards,
Shivnendra K

Dear santosh ji,
Once company has contributed the 12% of basic salary i.e.100000/- can not be withdrawn the such benefit of employess. For more clarification contribution will be in account as given below:
A/c No.01 : 12000.00+11486.00=23486.00
A/c No.10 : 541.00
A/c No.02 :1100.00
A/c No.21 :500.00
A/c No.22 :10.00
Regards,
Shivnendra K
Note: Eearlier sum may please be ignored.