Maximum 12% Contribution is to be paid to the Provident Fund Authority

An appeal has been preferred before the Provident Fund Appellate Tribunal at New Delhi challenging the order passed by the EPF Authority under Section 7A of the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952.

The labour law advocate appearing on behalf of the Bank/ appellant argued that the EPF authority has arbitrarily assessed the dues on the entire salary and the appellant bank is not entitled to pay more than 12% contribution of the then salary limit of Rs.6,500/- (but the salary limit has been increased from Rs.6,500 to Rs.15,000/- w.e.f. 01.09.2014)*

The Hon’ble Tribunal held that an employee cannot be forced to make payment more than the statutory limit of 12% contribution of Rs.6,500/- but the employer can always deposit more than the statutory limit, if it is done voluntarily, as per the Kerala High Court. Hence, the EPF Appellate Tribunal allowed the appeal of the aggrieved bank and quashed the order passed u/s7A of the EPF & MP Act, 1952 by the EPF authority.

*You can download the Provident Fund Wage Ceiling Increase Notification dated 29th August, 2014 here.

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