Employer wish to restrict the PF contributions only to the statutory limit of Rs.6,500/- Is it possible?

Dear Members,
Here I have a doubt. Suppose an employee coming under PF scheme is drawing salary (Basic Pay+DA) more than 12,000/- and the employer is deducting PF contribution @ 12% of Rs.12,000/- Employer is also contributing equal amount to his PF Account. But now the employer wish to restrict the contributions only to the statutory limit of Rs.6,500/- Is it possible, is there any problem. Kindly clarify.

statuary limit is revised to 15000 w.e.f 01.09.2014 , prior to this the limit was 6500

Thanks for reply please tell me in relation to new limit.

Yes.
Company can restrict their contribution to max. limit of 15000*12%.
In this case employee contribution should also be the same as employee; cannot be more.

Hi,
PF contribution ceiling limit is 15000/- thus if employer can contribute as per the ceiling amount. But, employee has the choice if he want to deduct pf as per ceiling amount or more than that.

Manoj Kamble,
This kind of contribution is termed as voluntary contributions & employer should be willing to pay higher admin charges. Both have to sign joint declaration in such case. Employee signs it as he allows employer to deduct more contribution from his salary & employer signs it to indicate that he is willing to pay additional admin charges due to this non-statutory contributions. Please know full requirements & then comment.

Bad Boy's Always Rule in Corporate.