Dear Experts,
In one of the organisation deducting higher contribution of EPF i.e actual salaries up to four months after that, the management has restricted the contribution actual ceiling limit of EPF i.e. Rs. 15000/- from both the Employee and Employer contributions . Is it permissible ??.
Please comment on this.
Regards,
Dr. PBS KUMAR
From India, Kakinada
590In one of the organisation deducting higher contribution of EPF i.e actual salaries up to four months after that, the management has restricted the contribution actual ceiling limit of EPF i.e. Rs. 15000/- from both the Employee and Employer contributions . Is it permissible ??.
Please comment on this.
Regards,
Dr. PBS KUMAR
From India, Kakinada
Dear Mr Kumar, it is permitted.It appears from your post that for about 4 Months EPF Contribution was made on actual Basic+VDA Earned.Subsequently, EPF Contribution restricted to present Statutory Limit i.e Rs15,000/-
Please Peruse Circulars from EPFO to this effect
From India, New Delhi
Please Peruse Circulars from EPFO to this effect
From India, New Delhi
Dear Dr. PBS Kumar,
There is a Judgment of The Hon'ble Supreme Court of India dated 9.9.2011 in the matter of Marathwada Gramin Bank Karmachari Sanghatana and Another V/s. Marathwada Gramin Bank and Others. The ruling in para 27 is as under: (Copy attached)
"The establishment is under an obligation to pay Provident Fund to its employees in accordance with the provisions of Statutory Scheme. The establishment cannot be compelled to pay the amount in excess of its statutory liability."
Therefore the management can restrict the PF contribution to the Statutory Ceiling Limit of INR 15000/-. Moreover it requires employer's consent to pay PF contribution over and above statutory limit.
Regards,
Suresh
From India, Thane
There is a Judgment of The Hon'ble Supreme Court of India dated 9.9.2011 in the matter of Marathwada Gramin Bank Karmachari Sanghatana and Another V/s. Marathwada Gramin Bank and Others. The ruling in para 27 is as under: (Copy attached)
"The establishment is under an obligation to pay Provident Fund to its employees in accordance with the provisions of Statutory Scheme. The establishment cannot be compelled to pay the amount in excess of its statutory liability."
Therefore the management can restrict the PF contribution to the Statutory Ceiling Limit of INR 15000/-. Moreover it requires employer's consent to pay PF contribution over and above statutory limit.
Regards,
Suresh
From India, Thane
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