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.

Posted 20th May 2010 From India, Pune
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


Posted 21st May 2010 From India, Eluru
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
Posted 21st May 2010 From India, Delhi
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

labour law student
Posted 21st May 2010 From India, Mumbai
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.
Posted 22nd May 2010 From India, Mumbai
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/- .
Posted 22nd May 2010 From India, Bhopal
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
Posted 22nd May 2010 From India, Coimbatore
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.
Posted 22nd May 2010 From India, Mumbai
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.
Posted 22nd May 2010 From India, Mumbai
[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.
Posted 22nd May 2010 From India, Mumbai
Thanks for your valuable comments, now my another query is if we are not deducting his PF amount, shall Employer's are elegible to pay 13.61% of contribution including with pension contribution of 8.33%.

Also let us know what will be the procedure to enable the exemption.
Posted 22nd May 2010 From India, Mumbai
dear concern sir i want to know that how govenment fix minimum wages and what are the basis?
Posted 24th May 2010 From India, Calcutta

this restriction can be from employer's side , not from employee's side.

An employee's deduction has to be minimum of 12% of Basic salary ..i.e if the basic is 7000 then it has to be 12% of 7000 ( it cannot be 12% of 6500).

however, an employer has the ption to restrict his contributin to 12% of 6500 ( i.e may not contribute 12% of 7000).

Posted 24th May 2010 From India, Bangalore
Hello to all,

There is 1 more rule which is called voluntary pf contribution. For this any employee whose salary is equal or more than 6500 can contribute maximum of 20% of his/her basic as pf.

In form no. 3A there is a option for voluntary pf contribution where u have to put the amount.

As per as employer part is concerned that employer has to pay 12% only if basic is = or <6500. for basic more than this limit company has exeptions.

Sanju Singh
Posted 25th May 2010 From India, Gurgaon
Dear All,

I've gone through all the discussion....As i would like to put up my conclusion....

If anyone getting salary(Basic+DA) more than 6500 & both(Employee & employer) are mutually agreed for deduction on total salary(Basic+DA) then it can be deducted...But only one thing is mandatory for employer only is to deposit Rs.541/- in pension fund(A/c 10) & rest will be deposited in EPF(A/c 1) & also the wages for account no.-10 is only including Rs.6500 for that employee..... Hope that everything will be cleared from my opinion........
Posted 26th May 2010 From India, New Delhi
hi all

my total salary is 16000 and basic salary is 11200. i had taken a leave in the month then my total basic salary is 10839
for this my pf will deduct on rs. 6500 @ 12% = rs. 780.00
my employer deduct this leave in rs. 6500 and made my pf rs 755.00
is it right please confirm.

vikas gupta
Posted 27th April 2011 From India, Lucknow
Hi! I am working as a HR in Construction Company. I am having one quiry. Do we have to Deduct PF from Labour’s Payment.If yes then what about the rules for PF deduction? Kindly reply urgently.
Posted 6th June 2011 From India, Nagpur
Dear all is it possible that PF can be deducted 4000 from Basic Rs 33333 @ 12% . S M Lamgora Manager Admin
Posted 7th June 2011 From India, New Delhi
Deduction of Provident fund from salary higher then 6500, is solely company’s decision.If company agrees to deduct, it is possible to deduct pf.
Posted 20th October 2012 From India, Mumbai
Dear Colleagues, Wish u all happy New Year what is the P.F. Deduction rate (%) in Guar Gum Industries?
Posted 1st January 2013 From India

If employee is willing to contribute PF, it is Employer's discretion to add his name in PF list. An employee will get more than 6500/- (Their salary is 7000, 10000 or 15000) you can add them in PF contribution and deduct PF for ceiling amount of Rs 6500.

Mano Kavin
Posted 7th January 2013 From India, Coimbatore
If Basic Salary is above Rs.6500/- is it compulsory to deducted PF ?
Posted 17th August 2013 From India, Delhi

The employee's demand is legally right. According to Para 30 of the EPF Scheme, 1950 and other provisions, an employee drawing wages (Basic+DA) exceeding Rs.6,500 is liable to PF contribution only to the extent of Rs.6,500 i.e. Rs.780.


Regarding your query, for employees drawing basic wages exceeding Rs.6,500, can be regarded as excluded employees and are not liable for PF deduction IF HE WAS NOT THE MEMEBER OF THE FUND PREVIOUSLY. For statutory compliance, employer is advised to take a declaration from the concerned employee to that effect. For the employees who have PF membership, PF contribution is mandatory to the extent of Rs. 6500 even if the salary earned is over and above that figure.
Posted 17th August 2013 From India, Pune
Dear In 12 perc of PF how much should be employer and employee contribution
Posted 6th September 2013 From India, Bangalore
Dear Seniors, if employee’s basic salary is 6000 then we can deduct the PF or not? plz help me out.
Posted 13th September 2014 From India, Indore
Is providing PF is mandatory for a company or its optional. Some companies are giving PF only for one year from the date of joining after that not giving.
Posted 3rd September 2015 From India, Bangalore
dear shalini,

Currently pf limit 15000 basic and its you can calculated 12% fro it..
but my basic is 17000.

so.pls give me answer to a deduct amount of Basic 15000 or 17000 ..

Jay patel
Assistant HR / ADM
Email. id .
Posted 17th February 2016 From India, Ahmedabad


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