PF Deduction Rules - Provident Fund
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PF Deduction Rules - Provident Fund

singhshalini1 Started The Discussion:

Dear All

In my company we are deducting Pf @ 12% of the basic salary. Now I have a new joinee who wants maximum Rs. 780 to be deducted as PF amount from his salary.

The person who is handling PF is not giving him this choice. But I am aware there is this kind of choice of getting maximum Rs. 780 to be deducted as PF amount as this kind of rule was in one of my last companies where I had worked.

Can anyone advice on this.

Regards
Shalini

Srikanth8123 - Member Since: Mar 2010
Dear Shalini

In PF there will no choice to deduct of a particular amount, its compulsory to deduct 12% from his basic or else there is 1 clause if his basic is crossing more than 6500/- than we can deduct the 12% up to 6500/- basic

regards

Srikanth

param75 - Member Since: May 2006
Hi shalini The new employee who is asking for the deducation is Rs. 780 is of 12% of Rs. 6500which is as per the EPF act 1952. Regards Param

vishu7754 - Member Since: Apr 2010
dear shalini as per the PF Act of 1952, it's mandatory to deduct amount as PF which is 12% of his salary {Basic+DA >=upto 6,500pm}. This means the employees, whose salary @ entry level is <= 6,500pm, only those are eligible for PF. In this case 12% of 6,500 comes 780. Conclusion: maximum amount of PF that can be deducted from eployees salary is 780. but there is exception to the rule for employees who are drawing salary{Basic+DA } more than 6,500pm

regards
vishal
labour law student
Quote:
Originally Posted by singhshalini1 View Post
Dear All

In my company we are deducting Pf @ 12% of the basic salary. Now I have a new joinee who wants maximum Rs. 780 to be deducted as PF amount from his salary.

The person who is handling PF is not giving him this choice. But I am aware there is this kind of choice of getting maximum Rs. 780 to be deducted as PF amount as this kind of rule was in one of my last companies where I had worked.

Can anyone advice on this.

Regards
Shalini

janardan_raccha - Member Since: Mar 2007
Hi to all,

Please let us clarify the following point, if an employee is joining and is getting salary more than 6500/-. Is their any exemption to not deduct PF contribution from his account.

Waiting for your reply & further procedure, like any form 11 need to submit.

october - Member Since: Apr 2009
Hello Mr Janardan, Yes a new employees will have the choice,not to deduct the Pf from his salary if his basic is more than 6500/- .

MANOKAVIN - Member Since: Jun 2007
Hai Shalini If his salary is 6500 you can deduct PF amount as 780. Otherwise, you can calculate 12% PF from his basic + da. manokavin

karkerapramod - Member Since: Feb 2010
In case the employee’s salary is Above 6,500/- as basic.Then is it compulsory or not to deduct PF from his/her salary.

karkerapramod - Member Since: Feb 2010
Okay new employee will have the choice. Got it.What about employer’s, If employee is willing to deduct PF even if his/her salary is above ,500/- than what.

karkerapramod - Member Since: Feb 2010
[QUOTE=MANOKAVIN;1145692]Hai Shalini

If his salary is 6500 you can deduct PF amount as 780. Otherwise, you can calculate 12% PF from his basic + da.

Dear Shalini

Thanks.In case the employee id willing to contribute PF even if his/her salary is above RS.6,500/- then what.



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