EPF
gosc
(Querist) 03 February 2011
This query is : Resolved
Whether an employer can restrict the EPF recovery on salary Rs.6,500/- only even though the employee’s salary [Basic] exceeds Rs.6,500/- during their service, like the restrictions followed in Pension Fund [EPS], the pension fund amount which is to be calculated on Rs.6,500/- only. Or the employer can ignore the salary ceiling limits to PF contributions and recover the PF on actual basic salary earned/given per month. Employees are willing to contribute to EPF and to Pension Fund on actual basic salary.
Whether an employer can recover and contribute on actual basic salary [more than Rs.6,500/-] for both provident fund and to pension fund if employees give their willingness in writing to employer.
Is there any legal/act binding on employer side/part that they can restrict their contribution to the basic amount of Rs.6,500/-[for both EPF&EPS]
K.S.Srinivas
(Expert) 27 July 2011
The statutory ceiling limit for deduction of EPF is pay + DA should be less than or equal to Rs.6,500/-. In respect of employees whose pay + DA exceeds Rs.6,500/- such of those employees can join the epf scheme voluntarily.
Deductions can be made on pay+DA exceeding Rs.6,500/- subject to the condition that both the employees and employer should sign representation which is to be filed to the EPF commissioner for his consent.
However, to my knowledge pension contribution is only 8.33% on the ceiling limit i.e., Rs.6,500/-.
