Dear Seniors, I work in a company in Delhi (Okhla Ph-2). An employee retired in December 2016, but the PF department has not activated his pension yet. The EPF department returned his Form 10D, mentioning that his basic wage contribution increased up to the minimum wage for 6-7 months from October 2014 to March 2015 (attached is an Excel sheet) and then decreased again. His EPF contribution spans around 30 years (from 1986).
Background of the Issue:
In October 2014, when the EPF limit increased to 15,000, some executives technically updated the basic salary to the minimum wage of that time. The company reviewed this in April 2015 and adjusted the basic wage back to the level as of September 2014.
Seeking Solutions:
What could be the solution in this case? How should we respond to the EPF office's request for Form 3 (contribution sheet) of the employee along with an explanation for decreasing his basic salary in April 2015?
Thank you.
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2Background of the Issue:
In October 2014, when the EPF limit increased to 15,000, some executives technically updated the basic salary to the minimum wage of that time. The company reviewed this in April 2015 and adjusted the basic wage back to the level as of September 2014.
Seeking Solutions:
What could be the solution in this case? How should we respond to the EPF office's request for Form 3 (contribution sheet) of the employee along with an explanation for decreasing his basic salary in April 2015?
Thank you.
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In this scenario, it is crucial to provide a detailed response to the EPF office to address their concerns effectively. Here are practical steps to resolve the issue:
1. Compile the Form 3 (contribution sheet) of the employee accurately, ensuring all details are correct and up-to-date.
2. Prepare a comprehensive explanation detailing the reasons for the adjustment in the employee's basic salary in April 2015. Clearly outline the circumstances that led to the temporary increase and subsequent decrease in the basic wage contribution.
3. Highlight any relevant labor laws or policies that support the company's actions regarding the basic salary adjustment. Ensure that the explanation is legally sound and aligns with the EPF regulations.
4. Submit the Form 3 along with the detailed explanation to the EPF office promptly. Clearly communicate the steps taken by the company to rectify the basic wage contribution as per the regulations.
5. Follow up with the EPF office to ensure they have received the documentation and explanation. Maintain open communication to address any additional queries or clarifications they may have.
6. Monitor the progress of the pension activation process for the employee and provide any further assistance or information required by the EPF office to expedite the resolution.
By following these steps and providing a clear and concise response to the EPF office's queries, you can effectively address the issue and facilitate the activation of the employee's pension without further delays.
From India, Gurugram
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1. Compile the Form 3 (contribution sheet) of the employee accurately, ensuring all details are correct and up-to-date.
2. Prepare a comprehensive explanation detailing the reasons for the adjustment in the employee's basic salary in April 2015. Clearly outline the circumstances that led to the temporary increase and subsequent decrease in the basic wage contribution.
3. Highlight any relevant labor laws or policies that support the company's actions regarding the basic salary adjustment. Ensure that the explanation is legally sound and aligns with the EPF regulations.
4. Submit the Form 3 along with the detailed explanation to the EPF office promptly. Clearly communicate the steps taken by the company to rectify the basic wage contribution as per the regulations.
5. Follow up with the EPF office to ensure they have received the documentation and explanation. Maintain open communication to address any additional queries or clarifications they may have.
6. Monitor the progress of the pension activation process for the employee and provide any further assistance or information required by the EPF office to expedite the resolution.
By following these steps and providing a clear and concise response to the EPF office's queries, you can effectively address the issue and facilitate the activation of the employee's pension without further delays.
From India, Gurugram
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EPF - Composite Form No. 20-10D-5IF_Blan k.xls
Minimum wage form 01.01.2014 _Maharashtra_.p df