Changing PF contribution

Dear Client,
At present, contributions to the Employees' Provident Fund (EPF) and Employees' Pension Scheme (EPS) are calculated based on a maximum wage ceiling of Rs. 15,000 per month. An employee contributes 12% of the Basic wages + Dearness allowance to EPF. The employer also pays 12% of pay, of which 8.33% is diverted to the Pension Fund and the rest 3.67% is diverted to EPF. The employer's contribution to EPS is capped at Rs. 1,250 per month. Section 12 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, prohibits employers from reducing wages or benefits of employees due to the employer's obligation to contribute to the Provident Fund or other related schemes. The employee can pay at a higher rate, and in such a case employer is not under any obligation to pay at such a higher rate. To contribute to higher wages, a joint request from the Employee and the employer is required as per Para 26(6) of the EPF Scheme. In such a case employer has to pay administrative charges on the higher wages (wages above 15000/-).