EPFO CEO tells companies they are legally obliged to make provident fund contribution on basic pay of up to Rs 15,000
The Union government is contemplating granting relief to companies by allowing them to delay or pay in installments their contribution to Employees’ Provident Fund (EPF) of their staff, apart from enabling more firms to make use of the EPF subsidy scheme.
At a meeting with the Confederation of Indian Industry (CII) on April 30, Employees’ Provident Fund Organisation (EPFO) chief executive officer Sunil Barthwal told employers that if they get into an agreement with their workers to revise the wage contract, they need deduct EPF contributions only on the basic pay of up to Rs 15,000, even if their basic pay is above this ceiling. While on one hand this will allow companies to lower their wage bills, employees can get higher salary in hand.
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Employers hailed the clarification from the EPFO brass for its potential to alleviate the cash crunch due they have been facing due to the national lockdown which had continued from March 25 till May 3. While the lockdowmn has now been extended to Mat 17, the Central government has considerably eased economic activities across the country, beginning May 4.
Source: Business Standard