Pf deduction from salary
PBS KUMAR
(Querist) 12 January 2012
This query is : Resolved
Dear Experts,
Recently our management has changed policy of benifits to the employees in that event the Employer's contribution has increased even if the Employee's contribution is lower than the cealing limit i.e.Rs.6500/-
Ex. If one employee contribution is Rs.5000/-(Basic)on that 12% PF deducting
he will get Rs.600/-PF
AND
Employer will pay @ Rs. 6500/- from his contribution @ 12% he will depositing employees accounts Rs.780/-.
So in this case Employer's contribution is more and the Employee's contribution as usual.
Is it permissible or any obligations from PF authorities. Please clarify.
Regards,
PBS KUMAR
Sudhir Kumar, Advocate
(Expert) 12 January 2012
What is your uery? Whether you r employer wants to contribute more than mandatory so what is illegal.
Raj Kumar Makkad
(Expert) 12 January 2012
There has not been any revision in PF rules to this aspect. This seems voluntary contribution on the part of employer otherwise in the given case, it was having a liability of Rs. 500/- and not Rs. 780/-.
Anyway, you should salute such management who is providing maximum benefit even beyond its legal liability to its employees.
Can I know the name of such company?
Raj Kumar Makkad
(Expert) 12 January 2012
I am asking because this is exception in whole country and such exceptions should be in the knowledge of we professionals so that some other managements may also be taught similar lesson.
