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 percentage of basic wages.
At present 12 per cent of basic wages is deducted as employees' contribution towards social security schemes run by the Employees' Provident Fund Organisation and an equal amount is contributed by employers.
"All officers in-charge of field offices are directed to get such establishments inspected where PF contributions has been deducted on 50 per cent or less of total wages," an office order said.
According to the order, the exercise of inspecting the firms deducting PF on 50 per cent 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.
EPFO pointed out, "instance have come to notice where total wages of employees' are splitted by employers to the extent that PF liability is reduced up to 50
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