The Employees’ Provident Fund Organisation (“EPFO”) through a circular dated 3rd January, 2018 has reiterated certain instructions related to employer’s contribution over and above the statutory wage ceiling.
In the present circular, EPFO has referred to the judgement of the Supreme Court in Marathawada Gramin Bank Karmchari Sangathan and Anr vs. Management of Marathawada Gramin Bank and Ors regarding employer’s share of contribution.
In view of the order of the Supreme Court, the EPFO directed all the Regional Provident Fund Commissioners-in-charge of regional/sub-regional offices to refrain from forcing employers to contribute over and above the statutory wage ceiling in respect of their employees. However, employees will have the option to contribute beyond statutory wage ceiling if they so desire subject to conditions given under Para 26(6) of the Employees’ Provident Fund Scheme.
The above-mentioned direction was previously issued by EPFO in a Circular dated 27.05.2014. EPFO has reiterated the same directions in the present circular.
Source: Employees’ Provident Fund Organisation
