One of our employees PF is being deducted on his actual basis i.e. 30000.00 (30000 x 12% = 3600), he is requesting to change the contribution and bound it upon 6500/- (6500 x12% = 780) so that he can get more take home salary.
Can it possible? Is there any rule or section in PF act?
From India, Kashipur
15Can it possible? Is there any rule or section in PF act?
From India, Kashipur
Dear Bhuvwan ji,
Bfore deducting the more than statutory limt of deductions first you have to intimate to your local Regional PF office, if not you are proceeding as it is if you again revert to actual PF i.e. @ Rs.6500/- also you seek the permission with explanation letter and obtain permission. This is because at the time of preparation of Annual Slips the proble will be arrasing.
Regards,
PBS KUMAR
From India, Kakinada
Bfore deducting the more than statutory limt of deductions first you have to intimate to your local Regional PF office, if not you are proceeding as it is if you again revert to actual PF i.e. @ Rs.6500/- also you seek the permission with explanation letter and obtain permission. This is because at the time of preparation of Annual Slips the proble will be arrasing.
Regards,
PBS KUMAR
From India, Kakinada
Dear Mr. Bhuwan,
It is not advisable to reduce PF contribution, Sec. 12 of EPF Act also supports that, Employer not to reduce wages, in terms of employment whether express or implied.
Regards,
Rahul Bagale
From Korea
It is not advisable to reduce PF contribution, Sec. 12 of EPF Act also supports that, Employer not to reduce wages, in terms of employment whether express or implied.
Regards,
Rahul Bagale
From Korea
Dear,
PF always contributed on basic salary and not gross.
If you can reduce his/her basic salary the pf amount can be reduced. Balance his salary you can pay as other/special allowance.
However inform him pf is not an loss the same is saving for our retirement.
If he is reducing his pf contribution employer contribution also reduced.
if he pays only 780/- as PF his employer also contribute 780/- instead of 3600/-.
From India, Mumbai
PF always contributed on basic salary and not gross.
If you can reduce his/her basic salary the pf amount can be reduced. Balance his salary you can pay as other/special allowance.
However inform him pf is not an loss the same is saving for our retirement.
If he is reducing his pf contribution employer contribution also reduced.
if he pays only 780/- as PF his employer also contribute 780/- instead of 3600/-.
From India, Mumbai
Hi Bhuvan,
Let me knw 1thng PF Employer Contribution is deducted frm ur employee or emplr pays their contribution. If they really pays their contribution then thats good. If not ask him to write a letter to PF office stating that he is not willing to go with 12% deduction from Basic. Request them to deduct on 6500(wage ceiling). If you produce this explanation letter in PF Office then they are going to accept it. So from next month onwards you can start deducting only 780.
Regards,
Vinay Kumar
From India, Hyderabad
Let me knw 1thng PF Employer Contribution is deducted frm ur employee or emplr pays their contribution. If they really pays their contribution then thats good. If not ask him to write a letter to PF office stating that he is not willing to go with 12% deduction from Basic. Request them to deduct on 6500(wage ceiling). If you produce this explanation letter in PF Office then they are going to accept it. So from next month onwards you can start deducting only 780.
Regards,
Vinay Kumar
From India, Hyderabad
I think deduction of pf at more than statutory rate requires permission of the employee. So in this case the employee is in effect withdrawing his permission. Which I think should be allowed (at least in principal). However the pf commissioner will look at this with suspicion. So you will need to document the same.
In addition, this will need to be consistent across the company. You can not say that form this person I will deduct at statutory rate and for others on gross salary.
From India, Mumbai
In addition, this will need to be consistent across the company. You can not say that form this person I will deduct at statutory rate and for others on gross salary.
From India, Mumbai
Dear Mr. Bhuwan,
If you have made any single remittance on 30000.00 then you can not reduce the same.
PF authorities will not allow for the same.
Please check other people contribution also it should not be dicriminatory with reference to other employees. " Article 14 " of Indian constitution
From India, Pune
If you have made any single remittance on 30000.00 then you can not reduce the same.
PF authorities will not allow for the same.
Please check other people contribution also it should not be dicriminatory with reference to other employees. " Article 14 " of Indian constitution
From India, Pune
Dear Bhuwan,
First of all EPF&MP Act 1952 has been allowed to contribute the amount @ 12% on the basic pay; which has ceiling of Rs.6500/-p.m.
Then the question of above salary shall arise. if any employee wish to contribute on all the salary on and above 6500/- then it is ok on his part; but the option is not mandatory for an employer.By this situation thereafter when an employee doesn't want to contribute more than 6500/- of salary willingly; then question will definitely not arise or no contravention of any rule of said act is taking place on both emp/emr side.
Only u have to wait for the end of accounting year i.e. upto FEBRUARY. You shall change the slab from the salary of MARCH itself.
Regards,
KIRAN KALE.
From India, Kolhapur
First of all EPF&MP Act 1952 has been allowed to contribute the amount @ 12% on the basic pay; which has ceiling of Rs.6500/-p.m.
Then the question of above salary shall arise. if any employee wish to contribute on all the salary on and above 6500/- then it is ok on his part; but the option is not mandatory for an employer.By this situation thereafter when an employee doesn't want to contribute more than 6500/- of salary willingly; then question will definitely not arise or no contravention of any rule of said act is taking place on both emp/emr side.
Only u have to wait for the end of accounting year i.e. upto FEBRUARY. You shall change the slab from the salary of MARCH itself.
Regards,
KIRAN KALE.
From India, Kolhapur
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