DEDUCT THE EPF CONTRIBUTION ON BASIC FROM GROSS SALARY

AS OF NOW MY COMPANY DEDUCT EPF CONTRIBUTION ON GROSS SALARY OF AN EMPLOYEE BUT WE ARE PLANNING TO DEDUCT THEIR CONTRIBUTION ON BASIC SALARY W.E.F MAY 2024. IF WE DEDUCT FROM THEIR BASIC WE NEED TO EDIT THEIR AMOUNT BASED ON BASIC IN EMPLOYERS PROFILE IN EPF SITE. WILL IT BE A ISSUE IN FUTURE? PLS SUGGEST ME THE PROCESS AND IS THERE ANY CONSEQUENCES FROM EPF IN FUTURE OR NOT.

In order to reduce or redefine the PF qualifying salary, there is no need to edit the data in EPF site. When you file next return, you can upload the sheet after deducting PF from basic salary only. BUT, reducing the PF qualifying salary is not permitted as per section 12 of the EPF & MP Act. However, this does not apply if you had been paying PF on actual gross salaries which were above Rs 15000 and now you want to make it on Rs 15000. To clarify further, if you have been contributing the PF on Rs 15000, and now would like to do it on basic alone which is less than Rs 15000, then it will be a problem in future. Therefore, never do it. But if your PF qualifying salary was above Rs 15000 and you make it on Rs 15000, then there is no issue, you can proceed.