Dear Seniors, At present, we have fixed the basic salary at 60%, and in October 2022, we increased the salaries of the employees. However, in the case of one of our employees, we made a mistake and increased his basic salary by 70% instead of 60%. We also paid his EPF contribution as per the increased basic pay. So I want to know, can we reduce his salary from 70% to 60% now? If yes, then can the Employees Provident Fund Department have any objection to this? Please guide on what we can do in this matter.
Thank you.
From India, Patiala
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1Thank you.
From India, Patiala
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Without knowing the amounts that constitute your basic salaries, we are unable to provide a reply. If 70% of your salary, i.e., the PF qualifying salary, is less than or equal to Rs 15,000, then you cannot reduce it to 60%. However, if this 70% is already above Rs 15,000, you can reduce it to Rs 15,000 and start contributing PF on that basis, i.e., Rs 15,000. Please revert.
From India, Kannur
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From India, Kannur
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EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf