EPF wage - As per the EPF act can we change the contribution of current employees?

Dear Experts,

Presently, we are paying EPF contributions based on the ceiling limit (Rs 15,000), but our employees are requesting that deductions be made on the full Basic + DA. According to the EPF Act, are we allowed to change the contribution for current employees?

Thank you.

Hi,

PF on ceiling limit is mandatory. However, PF deduction on actual Basic+DA is optional. Employers and employees, upon mutual consent, may opt for PF deduction on Basic+DA. This change can be implemented at the beginning of any month and can be coordinated with the appraisal month.