Dear Colleague,
The provisions of Employees Provident Fund Act 1952 and the Scheme thereof is insisting contribution for 15K. Some employers contribute more than this as a voluntary measure. In the given situation, if you want to restrict to 15k now, you need to examine few important aspect and also adhere to the process:
1. Whether you are going to do this change for Workmen who are covered under Industrial Dispute Act 1947. Then you need to align the Trade Unions as you are impacting the existing terms / privilege that is practiced over a period. Further you need to adhere to the Notice of Change Procedure also in my view. Need to consult the Enforcement Officer and take individual undertaking and consent form each of such workers.
Conditions of Service for change of which Notice is to be given ....1. Wages, including the period and mode of payment;/2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workmen under any law for the time being in force; ............/8 Withdrawal of any customary concession or privilege or change in usage;.......
2. In case of Non- ID Act covered employees, while you bring this change, you are altering the agreed Contract of Employment / CTC structure. Hence take consent from employees and issue revised CTC structure and to be signed by both sides- Employee Concerned and Employer both as amendment to previous CTC Structure.
3. You may need to consult the EPFO Officers well in advance still as part of Liaison so that it will go smooth.
4. Further do a good Internal Communication with all concerned- Trade Union, HODs, Managers, Employees and then smoothly execute this change.
In some of my previous organizations, we tried this but due to lack of good internal communication it was perceived by employees differently and they all refused to co-operate and went as a failure.
The provisions of Employees Provident Fund Act 1952 and the Scheme thereof is insisting contribution for 15K. Some employers contribute more than this as a voluntary measure. In the given situation, if you want to restrict to 15k now, you need to examine few important aspect and also adhere to the process:
1. Whether you are going to do this change for Workmen who are covered under Industrial Dispute Act 1947. Then you need to align the Trade Unions as you are impacting the existing terms / privilege that is practiced over a period. Further you need to adhere to the Notice of Change Procedure also in my view. Need to consult the Enforcement Officer and take individual undertaking and consent form each of such workers.
Conditions of Service for change of which Notice is to be given ....1. Wages, including the period and mode of payment;/2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workmen under any law for the time being in force; ............/8 Withdrawal of any customary concession or privilege or change in usage;.......
2. In case of Non- ID Act covered employees, while you bring this change, you are altering the agreed Contract of Employment / CTC structure. Hence take consent from employees and issue revised CTC structure and to be signed by both sides- Employee Concerned and Employer both as amendment to previous CTC Structure.
3. You may need to consult the EPFO Officers well in advance still as part of Liaison so that it will go smooth.
4. Further do a good Internal Communication with all concerned- Trade Union, HODs, Managers, Employees and then smoothly execute this change.
In some of my previous organizations, we tried this but due to lack of good internal communication it was perceived by employees differently and they all refused to co-operate and went as a failure.