Employee and Employer Contribution Structure
Our employment contract outlines a structure that includes both employee and employer contributions at 12% of the actual Basic pay. We do not offer a Dearness Allowance (DA), but all our employees' basic pay exceeds 15,000 per month.
Employee Contribution Request
If an employee requests that his contribution be limited to 1,800 (12% of the ceiling of 15,000), can we accommodate this and initiate lower deductions, even when our policy and compensation structure as outlined in our Offer is 12% on Basic?
Furthermore, if we were to consider such a request, would we as employers be able to continue contributing at 12% of the actual basic salary, or are we statutorily required to limit this to the same level as the employee requested - that is, at 12% of Basic, limited to 15,000 per month, which amounts to Rs.1,800 per month?
Uniformity in EPF Contribution Structure
Can an employer adopt a varied structure of EPF for employee and employer contributions within the company, or should we adopt a practice or policy that is uniform across the board?
From India, Chennai
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Our employment contract outlines a structure that includes both employee and employer contributions at 12% of the actual Basic pay. We do not offer a Dearness Allowance (DA), but all our employees' basic pay exceeds 15,000 per month.
Employee Contribution Request
If an employee requests that his contribution be limited to 1,800 (12% of the ceiling of 15,000), can we accommodate this and initiate lower deductions, even when our policy and compensation structure as outlined in our Offer is 12% on Basic?
Furthermore, if we were to consider such a request, would we as employers be able to continue contributing at 12% of the actual basic salary, or are we statutorily required to limit this to the same level as the employee requested - that is, at 12% of Basic, limited to 15,000 per month, which amounts to Rs.1,800 per month?
Uniformity in EPF Contribution Structure
Can an employer adopt a varied structure of EPF for employee and employer contributions within the company, or should we adopt a practice or policy that is uniform across the board?
From India, Chennai
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As per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the EPF contribution rate for both employees and employers is set at 12% of the employee's basic pay. However, in the scenario where an employee requests to limit his contribution to 1,800 (12% of the ceiling of 15,000), the employer can accommodate this request. The employer can continue contributing at 12% of the actual basic salary, which is in line with statutory requirements. It is advisable to maintain uniformity in EPF contribution structures within the company to ensure fairness and compliance with regulations. If variations are made, they should be clearly communicated and documented to avoid any discrepancies or misunderstandings.
From India, Gurugram
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51From India, Gurugram
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Michael-s
Thanks. Shall wait for more views