Epf query
Jatin Biswakarma
(Querist) 29 May 2015
This query is : Resolved
Dear Experts...this is a real situation...please reply...company wants to reduce its future PF burden after considering increment in basic salary.
Company is paying PF on the Full Basic Salary, say on 26,000/-. There are other components in addition to this basic also. Can the company frame a policy to pay PF only upto the statutory limit i.e. on 15,000/- instead of entire basic of 26,000/- which every year increases after increment.
Please give reference of relevant section or precedents if possible. If yes, then what will be the procedure to be followed by the company?
Kumar Doab
(Expert) 29 May 2015
NO.
The PF authorities shall treat it unlawful and shall proceed to penalize.
The PF is part of social security and company should rather curtail burden of expenses from other heads e.g. perks to executives......
T. Kalaiselvan, Advocate
(Expert) 05 June 2015
The company's contribution cannot be reduced on its own discretion, the Pf rules are different and company will made liable for legal action for its arbitrariness in this regard.