04 June 2014

PF Contribution capped at Rs.6,500

The Provident Fund Office has allowed companies to cap their monthly Provident Fund contribution to employees at Rs. 6,500. At present, companies contribute an amount equal to at least 12 per cent of an employee's basic salary towards his/her PF. 
Now, when an employer deducts and deposits Employees' PF contributions upon more than the prescribed salary, it can be reduced to Rs. 6,500 per month and in that event, section 12 of the Employees' Provident Funds & Mis­cellaneous Provisions Act providing bar for not reducing wages will not be attracted unless the terms of the employment specifically provide so.
The full text of the circular is enclosed.
Hope you find the update useful.
Note: The above update is just for reference.  User discretion and professional assistance is highly recommended before acting on the above.


No comments:

Post a Comment

What do you think about this? Please write your comment.

CA Exams rescheduled

Looking current situation CA Exam is rescheduled: CA inter and final exams will from 21st Nov . CA foundation will be from 8th Dec 2020.