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Dear all,
A company who is paying 12% of the basic where the basic is 60% of CTC till date. Now the employer wants to reduce the limit to Rs. 780/- only. Kindly clarify whether it can be applied and accepted by epf orgn.

Sure, an employer can reduce his share of contribution to 12% of Rs 6500 and by doing that the PF authorities can not question saying that benefits already being received by the employees can not be curtailed. It was also decided by Supreme Court in a recent case in Marathwada Gramin Bank Karmachari Sanghatana Vs Management of Maratwada Gramin Bank (SC 2011 LLR 1130)that when an employer is deducting and depositing EPF upon more than Rs 6500, he can reduce it to Rs 6500 later on and in that event section 12 of the EPF Act providing bar on reducing wages will not attract. For maore details please follow the link.
Madhu.T.K: Employer can reduce PF contribution at a later stage also
Regards,
Madhu.T.K

Dear All,
Please find a judgment of Supreme Court in case in Marathwada Gramin Bank Karmachari Sanghatana Vs Management of Maratwada Gramin Bank (SC 2011 LLR 1130), for your reference.