Sir/s,
I am working in an agriculture based organisation.
I have a quary regarding provident fund.
My query is, is it possible for an employee to make his PF contribution on lesser basic+DA than his actual basic+DA ? As already he was contributing on his actual basic+ DA.
For example
His Basic+D.A= Rs 12,500/- per month
He was contribtuing on above Basic+DA @ 12%. his contribution was Rs 1,500/- per month.
Now after salary revision his Basic+DA is Rs 15,500. and contribution in PF will be Rs 1,860/-.
Hence his contribution in PF increased as salary increased but he won't like to contribute at higher salary.
Now he wants to contribute in his PF account on the basis of Rs 6,500/-(As per PF law regarding maximum(bounded) salary for calculation of employer contribution).
Can he do so? If yes than what procedure have to follow up by him?
Is there anyother option to switch off from EPF to PPF or any other PF Scheme?
Please help.
Thanks & regards
From India, Purnea
I am working in an agriculture based organisation.
I have a quary regarding provident fund.
My query is, is it possible for an employee to make his PF contribution on lesser basic+DA than his actual basic+DA ? As already he was contributing on his actual basic+ DA.
For example
His Basic+D.A= Rs 12,500/- per month
He was contribtuing on above Basic+DA @ 12%. his contribution was Rs 1,500/- per month.
Now after salary revision his Basic+DA is Rs 15,500. and contribution in PF will be Rs 1,860/-.
Hence his contribution in PF increased as salary increased but he won't like to contribute at higher salary.
Now he wants to contribute in his PF account on the basis of Rs 6,500/-(As per PF law regarding maximum(bounded) salary for calculation of employer contribution).
Can he do so? If yes than what procedure have to follow up by him?
Is there anyother option to switch off from EPF to PPF or any other PF Scheme?
Please help.
Thanks & regards
From India, Purnea
Hi,
If you are paying over the ceiling and suddenly you can not reduce the contribution as per latest amendment read section 12, if you need to contribute to VPF then its possible you can contribute upto 100% of your Basic in VPF
From India, Mumbai
427If you are paying over the ceiling and suddenly you can not reduce the contribution as per latest amendment read section 12, if you need to contribute to VPF then its possible you can contribute upto 100% of your Basic in VPF
From India, Mumbai
Dear Ravi 5554, Greetings of the day!!! Can you just send me the new PF amendment, is it mandatory to take a ceiling as 15000 RS. If yes from which date it is applicable
From India, Chennai
From India, Chennai
Hi, Govindraj Still PF ceiling limit is 6500/-, when new notification will come i will update you....
From India, Mumbai
From India, Mumbai
Dear Aditya Sir,
As we know, Rs 6500 is maximum limit for employer and employee. If a new employee gets higher salary than Rs 6500, he has option to opt for dedution on actual basic+DA or Rs 6500/-.
My Question was,
1) Is it possible for an employee to contribute on the basis of Rs 6500/- when he already contributed at a higher basic than Rs 6500.00 in past months.
Can an employee(who get salary more than 6500) revise his option for deduction of PF?
2) Can he transfer/switch over his EPF in any other PF Scheme like as PPF?
You wrote about Voluntry Provident Fund(VPF). Please give some details about this.
Please help me to come out from this situation.
Thanks & regards.
Dinesh Kumar
From India, Purnea
As we know, Rs 6500 is maximum limit for employer and employee. If a new employee gets higher salary than Rs 6500, he has option to opt for dedution on actual basic+DA or Rs 6500/-.
My Question was,
1) Is it possible for an employee to contribute on the basis of Rs 6500/- when he already contributed at a higher basic than Rs 6500.00 in past months.
Can an employee(who get salary more than 6500) revise his option for deduction of PF?
2) Can he transfer/switch over his EPF in any other PF Scheme like as PPF?
You wrote about Voluntry Provident Fund(VPF). Please give some details about this.
Please help me to come out from this situation.
Thanks & regards.
Dinesh Kumar
From India, Purnea
Mr Ravi
After 1976 there is no amendments to Section 12 of the EPF Act.I think the employee can limit the contribution on Rs 6500/- (now).The SC has allowed this to employers .So why can't it be extended to employees also.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
After 1976 there is no amendments to Section 12 of the EPF Act.I think the employee can limit the contribution on Rs 6500/- (now).The SC has allowed this to employers .So why can't it be extended to employees also.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
Hi,
Section 12 in The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
1[12. Employer not to reduce wages, etc.—No employer in relation to 2[an establishment] to which any 3[Scheme or the Insurance Scheme] applies shall, by reason only of his liability for the payment of any contribution to 4[the Fund or the Insurance Fund] or any charges under this Act or the 3[Scheme or the Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to whom the 3[Scheme or the Insurance Scheme] applies or the total quantum of benefits in the nature of old age pension, gratuity 5[, provident fund or life insurance] to which the employee is entitled under the terms of his employment, express or implied.]
From India, Mumbai
Section 12 in The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
1[12. Employer not to reduce wages, etc.—No employer in relation to 2[an establishment] to which any 3[Scheme or the Insurance Scheme] applies shall, by reason only of his liability for the payment of any contribution to 4[the Fund or the Insurance Fund] or any charges under this Act or the 3[Scheme or the Insurance Scheme], reduce, whether directly or indirectly, the wages of any employee to whom the 3[Scheme or the Insurance Scheme] applies or the total quantum of benefits in the nature of old age pension, gratuity 5[, provident fund or life insurance] to which the employee is entitled under the terms of his employment, express or implied.]
From India, Mumbai
Dear all,
First of all I would like to say thanks for your quotes.
But still I have some doubt.
Can an employee approach to the employer for contribution on lesser Basic+DA?
Should employer accept the proposal of employee who wants to restrict his Basic+DA for pf contribution upto Rs 6500/-?
As employer restricted his contribution upto Basic+DA of Rs 6500/-.
Please suggest. Is it possible to employer to accept it ?
Thanks & regards
From India, Purnea
First of all I would like to say thanks for your quotes.
But still I have some doubt.
Can an employee approach to the employer for contribution on lesser Basic+DA?
Should employer accept the proposal of employee who wants to restrict his Basic+DA for pf contribution upto Rs 6500/-?
As employer restricted his contribution upto Basic+DA of Rs 6500/-.
Please suggest. Is it possible to employer to accept it ?
Thanks & regards
From India, Purnea
Hi,
Employer can't restrict employees contribution but he can restrict his own contribution to 6500/-, for employees contribution reducing better concern pf office.
May it will clear you...........
From India, Mumbai
Employer can't restrict employees contribution but he can restrict his own contribution to 6500/-, for employees contribution reducing better concern pf office.
May it will clear you...........
From India, Mumbai
Dear Dinesh Kumar Ji,
I would comment on the second part of your query.
PPF is not substitute of EPF.
EPF can be maintained either by the EPFO or by a Trust created with the sanction by EPFO.
One can opt out of EPF provided one's wages are above Rs.6,500 per month.
He can then save in PPF. However, he will not be able to avail of pension and deposit linked insurance scheme if he prefers PPF to EPF.
EPF gives more interest than PPF.
The employee also loses employer's 12% contribution which is a major loss of opting out of EPF.
EPF is a social welfare scheme so it is in the interest of employees to become member of EPF
Voluntary EPF is contributing over and above 12% statutory subscription. An employee can contribute more than 12% of his wages and avail of benefits of
tax rebate under 80C.
From India, Pune
I would comment on the second part of your query.
PPF is not substitute of EPF.
EPF can be maintained either by the EPFO or by a Trust created with the sanction by EPFO.
One can opt out of EPF provided one's wages are above Rs.6,500 per month.
He can then save in PPF. However, he will not be able to avail of pension and deposit linked insurance scheme if he prefers PPF to EPF.
EPF gives more interest than PPF.
The employee also loses employer's 12% contribution which is a major loss of opting out of EPF.
EPF is a social welfare scheme so it is in the interest of employees to become member of EPF
Voluntary EPF is contributing over and above 12% statutory subscription. An employee can contribute more than 12% of his wages and avail of benefits of
tax rebate under 80C.
From India, Pune
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