Date : 04-01-2018

CIRCULAR No.02/2018ToAll Members of the Association

EMPLOYERS HAVE NO OBLIGATION TO PAY PF CONTRIBUTION

OVER AND ABOVE THE STATUTORY LIMIT -

OPTION TO PAY MORE IS VOLUNTARY.

1. The Hon'ble Supreme Court in the case of Marathwada Gramin BankKarmachari Sanghatana Vs. Management of Marathwada Gramin Bank,AIR 2011 SC 3567, held that the Employers have no obligation to payProvident Fund higher than the prescribed limit under the EPF Act and theScheme.

2. The gist of the judgment and the instructions of the Provident FundOrganization was circulated by KEA Circular No.37/2014 dated 07.06.2014.

3. Now, the EPF Organization have once again instructed their fieldfunctionaries not to force employers to contribute over and above thestatutory wage ceiling in respect of their employees. However, option isavailable for the employees to contribute beyond statutory wage ceiling, ifthey so desire, subject to the condition enumerated under para-26(6) ofthe EPF Scheme.

4. A copy of the internal circular dated 03.01.2018 is enclosed for theinformation of the Members.

for KARNATAKA EMPLOYERS' ASSOCIATION

sd/-(B.C. PRABHAKAR)

PRESIDENT

KARNATAKA EMPLOYERS' ASSOCIATIONNO.74, 2nd FLOOR, SHANKARA ARCADE, VANIVILAS ROAD, BASAVANAGUDI

BENGALURU - 560 004Reg. No. TU 507 / 20-3-1962

Off : 26613091 / 26607167 42103360 / 26761877

Email : kea@kea.co.inWeb : www.kea.co.in