Is it legal to restrict PF to 12 % of Rs 6500 pm for ex-pats?

jayachandransr@gmail.com
Dear seniors, My company has ex-pats from AUS & NZ working in our company and currently, we are paying 12 % on their gross salary as PF . Is it legal to restrict PF to 12 % of Rs 6500 pm for ex-pats? If so could you please provide me the supporting documents?
korgaonkar k a
Dear [Login to view],
You can not restrict PF to 12% of Rs.6500 p.m. in respect of expats.
Contribution in respect of expats is calculated on basic wages, DA, Retaining Allw and on cash value of any food concession. This contribution is not restricted to Rs. 6500.00.
Right now you are paying the contribution @ 12% on Gross. You can not now split this gross in Basic, DA, Retaining Allw. and cash value of food concession etc. and reduce your liability. This will be amounting to reduction in PF wages which is not permitted under the Act.
dixonjose02
I agree wth Mr.Korgaonkar, the limit of 6,500/- is not applicable to expats, i.e. Internatioal Workers (IW), as per PF Act.
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