EPF & Pension Fund
gosc
(Querist) 02 February 2011
This query is : Resolved
Whether an employer can restrict the EPF recovery to Rs.6,500/- only even through 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 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 binging on employer part that they can restrict their contribution to the basic amount of Rs.6,500/-
K.S.Srinivas
(Expert) 04 August 2011
1. The employees whose pay + DA is less than or equal to Rs.6,500/- such employees are statutorily covered under the epf act.
2. Recoveries can be effected on actual pay + DA (even though exceeding Rs.6,500) in case the employees are willing to contribute. However prior permission is essentially required to be taken from the epf commissioner.
3. The pension contribution shall only be on Rs.6,500/-.
