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ash4love
Hi,
My Basic salary is Rs. 6510.00 in my new company, alongwith other allowances and incentives. My current employer is refusing to provide me a PF account, stating that as per the rules it is not mandatory to create a PF account for a person whose basic salary is above Rs. 6500.00. Whereas my previous employer used to contribute for PF, where my basic was Rs. 6600.00. Please advise, is my current employer is correct.

From India, Calcutta
malikjs
167

dear
your question itself is confusing you are saying that your salary is 6510 including incentive and allowances than your basic will be less than 6500.
dear if your basic is more than 6500 than you can force employer for PF if your earlier employer was giving u any bebefit than u can not claim here.
tks
j s malik

From India, Delhi
sivadasanvasu
7

In case your basic salary is more than Rs.6500/-, then the refusal of your present employer is correct. Regards, Sivadasan
From India, Udaipur
mulay.sanjay1
3

Dear Ash,
First make understand your Salary Breakup. If it shows Basic Salary below 6500/- then your present employer can't refure for PF. But if Basic Salary is above 6500/- then it is not mendatory on him to give you PF. if company wants only than you can get.
As you are saying that earlier employer giving the PF though salary if above 6500/- in this case if you are old employee and if there is increments in your salary and it goes above 6500/- then employer can not refuse.
further doubts you can write

From India, Pune
Nitin4hr
Dear Friend,
Your employer can not refuse to provide you a PF account on the basis that your basic salary is more than Rs. 6500/- as it is clear that you are already a PF member thru the previous employer now you have a right to transfer your previous PF accumulations to the present one as to increase the length of pensionable service.
With regards,
Nitin.

From India, Pune
rkjain29
24

hi if your basic + D.A. is less than or equal to 6500/ Rs. per month than your employer can’t deny Ritesh Jain M.S.W. ISS, AGRA
From India, Calcutta
gaonkar
Hi Ash,
Please check if the employee on roll are more than 20 then only PF is involuntary or wise PF is voluntary. If the employees are less than 20 on roll then you will need to ask for voluntary PF wherein the amount will be deducted from your take home salary.
Regards,
Gaonkar

From India, Mumbai
sumitk.saxena
252

Dear friend,
If your basic+da is less than 6500/- then your employer can't deny it but rest components like HRA, Medical, Conveyence can't be treated as a part of basic salary.
sumit kumar saxena

From India, Ghaziabad
samvedan
315

Hello,

The factual and legal position is as under:
  1. Whether you are a new employee or an existing employee, if your salary (Basic+DA) is less than Rs. 6500/- p.m. then the employer has NO CHOICE but to cover you under the PF Scheme.
  2. If you are an existing employee (already covered under the PF Scheme) for above reasons and over the years either for reasons of annual increments or for period salary revisions, the day your salary (Basic+DA) crosses the threshold of Rs. 6500/- p.m. you remain covered BUT your PF contributuins will be stopped at Rs. 6500/- p.m. This is perfectly in order by law. Some employers permit PF coverage beyond Rs. 6500/- p.m. but that is their policy decision and the PF authorities will not object.
  3. If you are a new joinee with salary (Basic+DA) in excess of Rs. 6500/- p.m. then the employer is NOT compelled by law to cover you under the PF Scheme EXCEPT if the employer has a policy like stated above. In such a case the Employer has a couple of choices-either to cover you and arrest your PF contributions to a Salary (Basic+DA) at Rs. 6500/- p.m. OR to cover you for your entire salary (Basic+DA) and the choice can also be to NOT cover you at all!
  4. Whatever the situation the employer has to follow UNIFORM application of law and his policies.
I trust the matter is clear to you now! If you have further doubts please raise as that would benefit the entire community of CiteHR.

Regards
samvedan
January 22, 2009

From India, Pune
maheshb
Hi Sanjay,
Can u provide where PF organisation says that it is not mandatory for who drawing more then 6.5 k... any rules are articled you have which PF organization published? please provide me if you have....
Thanks
Mahesh

From India, Bangalore
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