• Para 29 (3) contribution under Employee Provident Fund Scheme

The basic and Dearness Allowance of an employee is above the PF ceiling but the Company contribution is limited up to the statutory limit. The employee remain absent for few days on leave without pay during a month. Even if he was absent during the month but the basic and dearness allowance for the month comes to suppose Rs 25000/-. Now the question arises will the PF contribution will be on Rs 15000/- or whether the statutory limit on which the PF is contributed will be prorated for being absent without pay.
The correct method as I understand in terms the provision of Para 29(3) of the Employee Provident Fund Scheme his gross basic wage and dearness allowance earned during the whole month has to be taken into consideration. Hence, the contribution has to on Rs 15000/-. If this is the correct proposition of law is there any citation available in the field to this effect. What I am looking forward to is a citation/ ruling of a court.
Asked 5 years ago in Labour

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9 Answers

You do not need precedence, citation of rulings of Apex and High Courts if provisions of law is sound and clear favouring your facts of the case.

Precedence and rulings of Apex Court are based on sound clear provisions of law.

You do not need it.You contest your case and win it . Your case would become precedence for others in future quote of the case.

Precedence is required and sought before Appellate Courts ,High Court and Supreme Court of India by an aggrieved person on the question of legality of statutes and interpretation of the provisions of law whether ambiguity is latent or patent. The Appellate Court High or Supreme Court clarify the ambiguity which becomes precedence in the matter.

What ambiguity do you have interpreting the law in your matter?

If answer is no  then why do you need Citation of precedence of High and Supreme Court of India in your matter ?

Para 29(3) of contribution under employee provident fund scheme is clear and sound in your matter.

Do you still require to get clarified the para 29(3) by Appellate Court High or Supreme Court and justify that you have  been aggrieved by the action of anyone who is responsible for deductions, credit and payment to entitled employees?

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

PF is compulsory if basic including DA is not more than 15k, above that it is optional.

Employer can restrict PF deduction up to 15k, however high the basic and DA.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

 The Supreme Court ruling is silent on this matter and there is no clarity.  For such employees, Provident Fund contribution will need to be calculated on basic salary and fixed monthly allowances subject to limit of Rs 6,500 / 15,000 per month.


Can you give logic and legal aspect for your word terrible.

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

Contribution of Pf paid by employer & employee is 12% (basic pay + dearness allowance + retaining allowance) Equal contribution is paid by the employer & employee. The establishment which employees less than 20 person shall be restricted to contribute 10% for both employee & employer contribution.

It is voluntary for the employees who drawn a salary less than 15000 per month to became the member of EPF.The employee who drawn a salary more than 15000per month at the time of joining is not required to make pf contribution. If they want to become the member of EPF, then they become with the consent of the Employer & Assistant PF Commissioner.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

 If member is earning more than 15 K, max 15K PF will be deducted i.e. Rs 1800/-

K. Laxmibai vs Provident Fund Commissioner And ... on 29 June, 2005

Equivalent citations: 2005 (4) ALD 765, 2005 (4) ALT 541

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Where the pay of the member exceeds Rs. 15000/- per month, the
contribution payable to EPF contribution account shall be on the ‘Pay’ as
defined under Para 29 of the EPF Scheme, 1952 without any limit. However, the
contribution to be diverted under Para 3 of the Employees Pension Scheme,
1995 shall be limited to the pay of Rs.15000/- only. This is the law which doesn't need judgement

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

1. Both employees and the employer contribute to PF at the 'rate of 12%' of the basic wages and dearness allowance (if any) per month.

2. You can search for citations on sites specifically made for citation search like Indiankanoon.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

- The monthly pay shall be the pay as specified under Para 29 of the EPF Scheme, 1952, which covers:

A. Basic wages which includes all emoluments paid or payable in cash while on duty or on leave / holiday except Dearness allowance, House rent allowance, overtime allowance, bonus, commission or any other similar allowance payable in respect of employment and any presents made by the employer.

B. Dearness allowance - all cash payments by whatever name called paid to an employee on account of a rise in the cost of living)

C. Retaining allowance

D. Cash value of any food concession

- Further , where the pay exceeds Rs. 6500/- per month, the contribution payable to EPF contribution account shall be on the ‘Pay’ as defined under Para 29 of the EPF Scheme, without any limit.

- However, the contribution to be diverted under Para 3 of the Employees Pension Scheme, 1995 shall be limited to the pay of Rs.6500/- only.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

You are correct. The law is this.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

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