EPF contribution - reducing employees share while keeping the gross salary the same - acceptable?

The Employer is within its right to withdraw the facility of payment of additional PF contribution and can strict his contribution to the extent of statutory payments only any time without the consent of the concerned employees. There is judgment of the High court to that effect.
The said change does not require any prior notice or consent as per the provision of Section 9A of the industrial disputes Act, 1947.
Also, payment of PF on gross salary/wages does not tantamount to terms and condition.

Dear Friends,
I want to say exactly, what Mr. Darshan mentioned,
As per PF Act it is completely ok, but on safer side the written consent needs to be obtained from employees, Also we all knows that, now a days, Salary is based on CTC Concept. by implementing new changes , i.e. PF deduction on ceiling of Rs.6500/-, employer has to pay less contribution, which was earlier paid on Actual Basic, in such scenario, CTC will be reduced compare to earlier CTC of Employees.
In such circumstances, employer also needs to be fair enough by adjusting difference of amount so that Final CTC amount of employees will not be impacted.
regards,
Vipul Rana

Hi,
I am very good administrative manager .having 3 colleague my company is fully an properiatorship .
I want to know as admin of office what good think can be implemetated additional to daily administration .
also give best statutory compliance to staff as admin in charges .
Thanking yopu
Ms.Hetal M.

A change in contribution to PF attracts item 2&8 of schedule iv of ID Act,hence to be on safer side . better to comply sec 9A.
Varghese Mathew

Dear All,
Pls refer to the attached PF statement of an employee working as SG in my organisation.
There is a deviation (+/-) in monthly contribution by employee as well as employer.The basis salary of the emp. remain same through out this period. (Rs.4174/-).
Thanks & Regards,
Manish Shrimali
Ranchi, Jharkhand

Dear,
It is not possible for any organization to reduce the amount of EPF, for the new joinees you can implement the rule of keeping 65000 the maximum basic for PF deduction but for the existing employees the share cannot be reduced.
Regards,
Everyjobs Team
For latest jobs visit Every Jobs | Find All jobs
U can join us on:
http://www.facebook.com/everyjobs2013
https://twitter.com/everyjobs2013
Everyjobs | LinkedIn
Also send your resume to [Login to view]

Yeah, It is rightly said, once you started deducting PF on the entire amount for particular employee, you can not reduce the PF Contribution.
However you can start implementing this process for the new joinees as you can take basic salary is Rs.6500/- & can deduct Rs.780/- as PF even if their Basic Salary is above Rs.6500/-.

it z not true. deduction can be reduced by circulating notice among employee, employer & PF Office. The point is that employee should be agreed with the same.

Hi Rajan,
Employer reserved this right means He will only Rs. 780/- (Basic - 6500) ever employee will pay any amount.
But the employer will pay only Rs. 780/-.
Rgds,
Bhanu

Dear Friends,
Please help me arrange this salary slip correctly