EPF
1 week ago
An employer was giving 12% epf to the employees but when the salaries of the employees increased above 15000, he paid 12% contribution of Actual salary Rather than ceiling it at 1800 as a clerical error and continued it for 3 years. But now he wants to rectify the mistake for the future and wants to reduce their contribution to 1800. CAN he do that?
Example : XYZ firm was contributing 12% of 14000 i.e. 1680
but when the salary increased to 20000 he was contributing 2400
But now he wants to reduce the contribution to 1800 with a ceiling of 15000 salary.
IS HE ALLOWED TO DO THAT?
He is only reducing the contribution not the salary.
Will section 12 be attracted.
Both employers and employees are required to contribute a fixed percentage of the employee's salary to the Employees' Provident Fund (EPF) account. The current contribution rate is 12% of the employee's basic salary plus dearness allowance (DA). EPF contribution is mandatory for employees with a basic salary plus DA of up to ₹15,000 per month. For those earning above this threshold, contribution is optional, subject to approval. If the salary exceeds the threshold, contributions are calculated based on it.
According to Section 12 of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, employers cannot reduce wages of covered employees. However, if the employment contract doesn't mention provident fund payments beyond the statutory ceiling, Section 12 doesn't apply. Employers can't be compelled to pay excess amounts indefinitely due to clerical errors in contributions. Therefore, in such cases, the employer isn't reducing wages but fulfilling statutory obligations. Consequently, Section 12 isn't applicable in this context.
A.Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)
(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]
Both the employee and employer are required to contribute a fixed percentage of the employee’s salary to the EPF account. The current contribution rate is 12% of the employee’s basic salary plus dearness allowance (DA). EPF contribution is mandatory for employees with a basic salary plus DA of up to ₹15,000 per month. For employees earning above this threshold limit, it is optional, subject to approval from the Assistant PF Commissioner. If the employee’s basic salary and DA exceed the threshold limit, the contribution is calculated based on the threshold limit. As per Section 12 of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 Employer is not permitted to reduce wages, directly or indirectly, of any employee to whom the scheme applies. If the employment contract terms did not mention anything about provident fund payment in excess of the statutory ceiling. In that case, the matter does not attract the application of Sec. 12 which applies only if an employee is being paid less than the statutory limits. An employer cannot be compelled to pay the amount in excess of its statutory limit/liability for all times to come just because of clerical error they started paying contributions to the provident fund account in excess of its statutory liability for some time. So, here, the employer is not reducing the salary or wages of the employees but discharging their statutory liabilities as prescribed under the Act and accordingly, the provisions of Sec. 12 of the Act are neither applicable nor can be invoked in the facts and circumstances of the case.
Less Full and final settlement
Already Served 10 Days Out Of 15 Days Notice Period, But Have Still Not Got LWD.
Regarding obc NCL reservation
Contractual Employer deducting PF
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