Dear Rohit,
According to Section 12 of the EPF Act, an employer cannot do so. But in case, if employer is currently deducting PF on higher than prescribed limit of Rs. 6500/- and depositing the same to PF Office, in that case, employer can reduce and limit it to Rs. 6500/-
But changing this criteria is not at all easy. You have to go through series of procedures for that.
Kindly go through Mr. Tsivasankara's answer.
Kindly go through the attached file..