25 April 2009
IN case of payment EDLI charge,the requirement under EMPloyees' Deposit Linked Insurance Scheme is as follows:
"No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001)."
In case of an organisation, however, this EDLI charge was calculated on total wages till March 2009 instead of restricting EDLI charge to the wage ceiling amount of Rs.6500. The matter was discussed with EPFO organisation and they stated that it can be adjusted in future payments.
My query is
(1)Under which circular of Employees Provident Fund Organisation (EPFO), adjustment of this payment is allowed.
(2) What is the provision in this regard in relevant EPFO rule/act position
(3) Whether this recovery from future payment, can be made from total amount payable to EPFO or recovery of this excess EDLI payment is to be restricted against future EDLI payment only.