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.
From India , Bangalore
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1Presently, 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.
From India , Bangalore
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Hi, PF on the 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.
From India, Madras
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From India, Madras
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EPF Act.ppt