EPF

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This query is : Resolved

GOS (Querist)

04 February 2011 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]

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

04 February 2011 Upto a basic 6500/- both EPF & Pension fund contribution is mandatory.

Above 6500/-, is purely voluntary. If an employer wants they can restrict their contribution to Rs. 6500/- only, while an employee, can contribute on higher basic salary by way of voluntary contribution.

Employer's obligation for contribution is only upto Rs. 6500/-.

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