celling of E P F deduction

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This query is : Resolved

sita ram soni (Querist)

11 December 2009 we have 70 regular emploess and contributing 12% e p f as employeer share irrespective to celling of Rs 6500 . i.e is the salary of employees is 20000/- we contibute Rs 2400/-

But we have 300 employees deputed by contractor who have his own account no and the EPF of these contractors are being deposited in the account code of contractor . The employer share is being paid to contractor by Us . I want to know that CAN THE CONTRACTOR DEPOSIT E P F UP TO THE CELLING OF rS 6500/- ONLY EVEN THE EMPLOYEE OF CONTRACTOR WORKING IN OUR FACTORY GETTING SALARY ABOVE rS 6500/-.

iS IT mandatory to follow the same rate and celling for the contractors emplyee which we adopts for EPF for our emplyees on our roll.

In my opinion we should contribute for contractors employee only up to Rs 6500/- where as for our employess we contibutes for full wages i.e above Rs 6500/- also

Ram Avtar Singh

Ram Avtar Singh (Expert)

11 December 2009 deposit of EPF on salary above rs.6500is not bounded by any law. its depend on employer to deposit or not. same rule for contrctor. but you can not pay contrctor share you are paying to contractor and contrctor will pay EPF & ESI.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)

15 October 2010 maximum limit that a employer can deduct it from his employee is Rs. 780 calculated @ 12 on Rs 6500 /- however employee can paid more than that percentage but employer is not bond to do so , it is different if the employer likes to pay
regarding e s i you can deduct it from your @1.75 a,d you have to paid @ 4.75 % on net earning , is you are paying for contract worker also to the contractor so it is there duty to do all that things but for better practice you should cheek that either contractor are making there liability or not .

sita ram soni

sita ram soni (Querist)

31 March 2011 Sir

My query is : Is there any law or rule under EPF that a employeer have to adopet the same scheme/ benifits for all the employees working in his premises weather his own employees or employees deuted by contractor. Pl clear If we pay contibution above celling for our regular employees then are we bound to pay contibution ( As principal Employer)above celling to the employees of contractor OR we can pay them up to Rs 6500? where as we are paying beyond the celling for our regular employee

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