Dear Members,
Here, I have a doubt. Suppose an employee coming under the PF scheme is drawing a salary (Basic Pay + DA) of more than Rs. 12,000, and the employer is deducting PF contributions at 12% of Rs. 12,000. The employer is also contributing an equal amount to the employee's PF account. However, now the employer wishes to restrict the contributions only to the statutory limit of Rs. 6,500. Is this possible? Are there any issues with this change? Kindly clarify.
From India, Jaipur
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1Here, I have a doubt. Suppose an employee coming under the PF scheme is drawing a salary (Basic Pay + DA) of more than Rs. 12,000, and the employer is deducting PF contributions at 12% of Rs. 12,000. The employer is also contributing an equal amount to the employee's PF account. However, now the employer wishes to restrict the contributions only to the statutory limit of Rs. 6,500. Is this possible? Are there any issues with this change? Kindly clarify.
From India, Jaipur
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statuary limit is revised to 15000 w.e.f 01.09.2014 , prior to this the limit was 6500
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Yes. Company can restrict their contribution to max. limit of 15000*12%. In this case employee contribution should also be the same as employee; cannot be more.
From India, Chennai
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From India, Chennai
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Hi, PF contribution ceiling limit is 15000/- thus if employer can contribute as per the ceiling amount. But, employee has the choice if he want to deduct pf as per ceiling amount or more than that.
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Manoj Kamble,
This kind of contribution is termed as voluntary contributions, and the employer should be willing to pay higher admin charges. Both have to sign a joint declaration in such a case. The employee signs it as he allows the employer to deduct more contribution from his salary, and the employer signs it to indicate that he is willing to pay additional admin charges due to these non-statutory contributions. Please know the full requirements and then comment.
From India, Mumbai
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This kind of contribution is termed as voluntary contributions, and the employer should be willing to pay higher admin charges. Both have to sign a joint declaration in such a case. The employee signs it as he allows the employer to deduct more contribution from his salary, and the employer signs it to indicate that he is willing to pay additional admin charges due to these non-statutory contributions. Please know the full requirements and then comment.
From India, Mumbai
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SC Judgment-No obligation to excess contribution than Statutory Limit.docx
No contribution on salary exceeding statutory limit under EPS 8.11.2013.pdf