PF contribution

This query is : Resolved

Shruthi Karthik (Querist)
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31 July 2016 Dear All, As per the rules of the EPF., till August 2014, the maximum limit of PF subscription was Rs.780/- considering 12% of the pay Rs.6500/- . Now, the Govt. has raised the sealing of pay to Rs.15000/- wef, Sept., 2014 and the employees have to contribute 12% of their pay which comes to Rs.1800/-, for those who are drawing the pay of Rs.15000/- or more. The Management has also to contribute the equal amount of the subscription. Now, the Management has decided to limit the contribution to Rs.780/- only instead of Rs.1800/- and the balance difference amount of Rs.1020/- will be recovered from the salary of the employee in addition to the subscription amount. ie., Rs.1800 + 1020/- = Rs.2820/- will be recovered from the employee salary wef. 01-09-2014. However, the additional 1.5% Administrative charges which has to be paid to the PF Commissioner in addition to the subscription + management contribution will be borne by the Management. This decision of the Management is communicated to you for your kind information. With regards management the following is legal or illegal

Shruthi Karthik

Shruthi Karthik (Querist)
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31 July 2016 the following statements by management please