En employer is establishing a new factory and most of the employees will be transferred from the existing functional Unit where employees' PF contribution is being paid on actuals which is more than Rs. 15000/-. In the new Unit, he wants to cap PF contribution on Rs. 15000/- which is permissible based on the Marathwara Gramin bank judgment. Is there any prescribed formality concerning PF Act? Please suggest.
In the meantime, they have also given an offer to some outsiders and these prospect employees have put the condition that they should be allowed to contribute, PF on the actual basic with equal contribution from the Employer. Is it possible & advisable to have two different PF contribution systems? Please also suggest formalities & possibilities strictly with respect to compliance with the Act. Para 26(6) of the Scheme puts no burden on the employer to contribute but in this case the employer has also to contribute on the actuals.
In the meantime, they have also given an offer to some outsiders and these prospect employees have put the condition that they should be allowed to contribute, PF on the actual basic with equal contribution from the Employer. Is it possible & advisable to have two different PF contribution systems? Please also suggest formalities & possibilities strictly with respect to compliance with the Act. Para 26(6) of the Scheme puts no burden on the employer to contribute but in this case the employer has also to contribute on the actuals.