Latest EPFO Circular - Filing of Review Petition against judgement of Hon’ble Supreme Court of India in SIP No. 1205/2009

EPFO Circular - EMPLOYEES PROVIDENT FUND ORGANISATION

MINISTRY OF LABOUR AND EMPLOYMENT, GOVERNMENT OF INDIA, DELHI

Ref. No. LC(637)2009/Vol.I/203- Dated: 27.05.2014

Subject: Filing of Review Petition against judgement of Hon’ble Supreme Court of India in SIP No. 1205/2009 in the matter of Marathwada Gramin Bank Employees Union Vs. Management of Marathwada Gramin Bank – regarding.



Reference: This office letter No. LC-2(637)2009/MH/12780 dated 08.10.2013



Please refer to the above Cited letter wherein views on the issue of filing Review Petition/implementation of the order dated 09.09.2011 of the Hon’ble Supreme Court of India in SLP No. 1205/2009 in the matter of Marathwada Gramin Bank Karamchari Sangathan & Ors. Vs. Management of Marathwada Gramin Bank, were called for.



2. The views expressed by the Zonal Addl. Central Provident Fund Commissioners as to whether review petition need to be filed or not has been examined at Head Office. Having analysing the pros and cons of the issue, Competent Authority felt that there is no point in going for review against the said judgement of Hon’ble Supreme Court of India.



3. All the Regional Provident Fund Commissioners-In-charge of Regional /Sub-Regional Offices are, therefore, directed not to force employers to contribute over and above the statutory wage ceiling in respect of their employees. However, option is available for the employees to contribute beyond the statutory wage ceiling if they so desire subject to the conditions enumerated under para 26(6) of the Employees’ Provident Funds Scheme, 1952.

Yours faithfully,

(P.K.UDGATA)

Addl. Central Provident Fund Commissioner (Compliance)

Tei.: 011-26172672



By implementing this Circular now EPFO cannot force the Employers to contribute over and above the statutory wage ceiling in respect of their employees.



Pls see https://www.citehr.com/285737-legal-...?status=closed

Sir,

A copy of the circular would have been handy for reference.

Warm regards,
Sourav Mukherjee

Hello, I have a question. My employer deducts 12% of my basic for PF. Does this new amendment imply that now I can ask my employer to deduct it at a ceiling of 6500 and not my total basic? Actually, my basic is very high, and hence the deduction comes out to be high. In order to have cash flow, I would like to reduce the deduction. Any idea?

Thanks,
Vineeta

If you reduce your contribution as per the ceiling, your savings will also reduce. If you contribute 12% of your whole basic, your employer also contributes 12%. For example, if your basic is Rs. 20,000, then your PF contribution will be:
[IMG]https://drive.google.com/file/d/0B9C0LjvhiDKweXEzNWRqM0Y0Mnc/edit?usp=sharing[/IMG]

For basic 20,000, please refer to the attached PF calculations in reference to the above post.

Dear member,

You should discuss with your HR professional regarding reducing your PF contribution to the ceiling of 6500. It is not difficult to implement this change. If you require any assistance, feel free to reach out to the enforcement office of EPFO.

Thanks,
N.K Yadav

Hi Vineeta,

Your employer is deducting 12% of your PF, which is good, and an equal amount will be credited to your PF account, becoming a part of your savings for the future. If you insist on PF deductions as per the ceiling, you will lose out. Some well-organized sectors do not follow the wage ceiling and generously contribute an equivalent amount to the PF of their employees. I do not agree that you should ask your employer to deduct your PF as per the wage ceiling. I also agree with Mr. Suhas Kambe.

Adoni Suguresh Sr. Executive (Pers, Admin & Ind. Rels) Rtd Labour Law Consultant