For Pf Deduction

Jagdish Rai
Dear All,
Greetings of the day!!!
I want to know that If we deduct Provident Fund of an employee more than range of 6500/-.
i.e on 6500 employee contribution is 12% 780/-
if we are deducting 810/- employee pf
Now can I decrease his contribution or every year it will be increase from 810/- PM.
Please guide me.
Thanks & Regards
Jagdish
tushar.swar
Dear Jagdish,
PF contribution can't be reduce any point of time,
secondly, employee wish to deduction his contribution more 12% then, you may allow to do so, but, in that case employer is not bound to deduction on higher % (more than 12%) they are allow to contribution at least 12%.
Regards,
Tushar Swar
R K SINGH KALHANS
Mr. Tushar
Option is open if we get declaration from the individual to do so.
R.KS.INGH
Jagdish Rai
Dear Mr Tushar ,
Thanks for kind reply
But I want to know something
once time in hotel industries Minmum wages increase its PF 12% was 810/-
but now min wages are 6500/-
this was for one or two months and we start our few employees 810/- PM.Now our consultant inform us although minimum wages are revise or not its mandatory to increase these employee PF amount from 810 after a year.Is it right or wrong.Please guide me.
Thanks & Regards
Jagdish
tushar.swar
Dear Jagdish,
Your consultant is absulately right, you may still countinue to deduct on 6500/- till the new amendment is not yet come as PF authority is increasing the PF celling from 6500/- to 10,000/-
Regards,
Tushar Swar
AG Desai
Please go through the following judgment to know more details about the PF contribution in case of Minimum wages.
regards
agdesai
MANU/SC/0446/1999
Equivalent Citation: AIR1999SC2459, JT1999(5)SC320, (1999)IILLJ705SC, 1999(4)
SCALE451, (1999)6SCC567, [1999]Supp1SCR22, 2000(1)SLJ273(SC)
IN THE SUPREME COURT OF INDIA
C.A. No. 4259 of 1999
Decided On: 04.08.1999
Appellants:Airfreight Ltd.
Vs.
Respondent: State of Karnataka & Ors.
Adoni Suguresh
Mr.Jagadish,
The dedction or contribution to Provident Fund is statutory. The exisiting salary limit what fixed is Rs.6,500/- on which contribution @ 12% from employee side and equivalent amount from employer. Additional contribution over and above 12 % of the employees is permitted but employers contribution is limited. But in any case you cannot deduct the less amount. You continue the deduction on existing rate till new amendment comes into force.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels)Rtd
Labour Law Consultant
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