Day: 7 August 2014

August 2014,  EPFO has asked its over 120 field formations to inspect firms which are deducting PF on 50 %  or less of total wages. In a bid to deal with issue of splitting of wages by employers, field offices told to inspect establishments that may be structuring salaries in such a way as to cut PF liabilities The employers often split wages into different allowances to reduce their PF liability and also increase the take home pay of their workers. The provident fund is deducted as 12 % of basic wages. According to the order, the exercise of inspecting the firms deducting PF on 50 %  or less of total wages, must be completed by August 31. The EPFO headquarters have asked the field formations to submit a report in this regard by September 7. It observed in the order that "many employers...