Hi,
In our organisation currently we have PF contribution from both employee and employer (12%+12% on Basic+DA) from the day the organisation has started, we do not have any capping of 6500.
Organisation is planning to go for capping of 6500 for both employee and employer wef July 12 ( planning to contribute only rs 780 from both the side). i would like to know the following:
1- can a company start capping of 6500 in the middle of the year.
2- if the capping is done in middle of the year is there is any formalities done wrt EPF office (any intimation to PF department)
3- is there any forms that needs to be filled by employee and employer and submitted to PF department.
Seniors kindly suggest in this regard.
Rgs
Sinchana
From India, Bangalore
2In our organisation currently we have PF contribution from both employee and employer (12%+12% on Basic+DA) from the day the organisation has started, we do not have any capping of 6500.
Organisation is planning to go for capping of 6500 for both employee and employer wef July 12 ( planning to contribute only rs 780 from both the side). i would like to know the following:
1- can a company start capping of 6500 in the middle of the year.
2- if the capping is done in middle of the year is there is any formalities done wrt EPF office (any intimation to PF department)
3- is there any forms that needs to be filled by employee and employer and submitted to PF department.
Seniors kindly suggest in this regard.
Rgs
Sinchana
From India, Bangalore
Hi Sinchana You shall give a written letter for the PF department along with Board Resolution (If LTD company). Also you can take a declaration from all the employees for change of PF contribution.
From India, Bangalore
From India, Bangalore
Dear
Yes, it can be done. There is no rule prescribed in the PF Act or Scheme as to how to implement the same.
However, it can be done. First of all, since you have to reduce the amount of PF Contribution which ultimately amount to change of service conditions of the employees. It would be advisable to pass a board resolution to this regard, put a notice intimating to the employees and also obtain a no objection of the individual employee or their union if there is any one operating in your establishment.
Then intimate to the PF Authorities about the same alongwith the copies of the papers as suggested herein above about the co’s decision and effective date of the same. It would be better if you send a copy of the same to the Labour Authorities also.
There may be some objection from the PF Authorities which you have to deal with as the situation warrant in future. However, it is permissible and no employer can be forced not to change the policy.
pkjain
From India, Delhi
Yes, it can be done. There is no rule prescribed in the PF Act or Scheme as to how to implement the same.
However, it can be done. First of all, since you have to reduce the amount of PF Contribution which ultimately amount to change of service conditions of the employees. It would be advisable to pass a board resolution to this regard, put a notice intimating to the employees and also obtain a no objection of the individual employee or their union if there is any one operating in your establishment.
Then intimate to the PF Authorities about the same alongwith the copies of the papers as suggested herein above about the co’s decision and effective date of the same. It would be better if you send a copy of the same to the Labour Authorities also.
There may be some objection from the PF Authorities which you have to deal with as the situation warrant in future. However, it is permissible and no employer can be forced not to change the policy.
pkjain
From India, Delhi
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