Provident Fund contributions- limits - it company.. CiteHR

fabesd Started The Discussion:

Dear CitiHR, Our company is contributing to the PF fund only for employees who are drawing less than 6500/- The remaining employees are not taken in the scheme. Is it compulsary to include employees drawing more than 6500/- and contribute, or its is left to the discreation of the employer. Is there any rule in the PF act. Rgds Fabes

ANTONY_XAVIER -  Member Since: May 2005
Hi, I know a person who is drawing 13,000 p.m with out any deductions like PF. The company has approx 100 staff and it is an IT Company. Let me know what the Law says. Regards

Ashokchy -  Member Since: Dec 2004
Dear Fabes, As per the Act the employees who are drawing the Basic + DA equal or less then Rs.6500 ,The deduction for such employees towards PF is manadtory and if such person in due course of employment exceeds the limits even then he is eligible to get the PF contribution. If a person at the time of joining the organisation draws the Basic+DA more than the limit.This is total depends on Employers discretion and surly not mandatory. Regards Ashok Kumar 09818646314

fabesd -  Member Since: Jul 2005
Dear Ashok, Many thanks to you and everyone in the forum. The reply was really helpful. Regards Fabes 9820934550

mahavir_2410 -  Member Since: May 2008
we are employer and contributing same p f as we deducted even if salary is more than 6500. any amendmend available

leo_paru -  Member Since: May 2008
Dear As per rule limit is Basic 6500 per month. But for employee benefit company Cut PF (employee contribution + employer contribution) As it help in saving for long term and tax benefit. Maximum company do this for empolyee benefit. Thanks Parveen

subhashineehr -  Member Since: May 2008
Dear all, I work as a third party HR for a retail client.. Can somebody clarify me if PF is reduced on Basic+DA or only Basic salary...??? Further, what are the other options than providing OT to employees viz.. providing dinner, dinner allowances, conveyance etc...?? What all parts of a pay would attract ESI...??? Expecting your earliest response... Thanks & Regards Subhashinee

Madhu.T.K -  Member Since: Sep 2007
For EPF it is Basic + DA wages taken for contribution. For determining the eligibility for coverage OT is not taken as part of salary, but if a covered employee earns OT in a month, then ESI contribution to total amount of salary including OT has to be paid. Instead of OT, if you pay any other allowance, like conveyance allowance, you can avoid contribution. But to what extend? If you pay conveyance instead of OT, and when the Factories Inspector calls for details of overtime work done, you are bound to show the amount of OT given, otherwise it is violation of Factories Act. Therefore, always pay as per head only. Regards, Madhu.T.K

Ramya.K -  Member Since: May 2008
Hello Friends, Could anyone send me the participant list format. I need to prepare for my 2 day training program Regards Ramya Mail Id:

bashukinath -  Member Since: Aug 2011
Dear Sir i want to know the guidelines for PF deductions on or within or above 6500 salary slab. please send me the reply ASAP,


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