PF is calculated on the basis of actual basic? - CiteHR
Gm (hr)
Hr Manager
Hr Executive
+4 Others

Prime Sponsor - - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
The maximum limit of basic for calculation of pf is Rs.6500/-.But till today pf is calculated on the basis of actual basic (say Rs.7500/-).
Can i start calculating the pf deduction by assuming the basic as Rs.6500/-.
Pl. suggest
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
your assumption is not correct.for provident fund max limit basic is 6500 and if basic is more than this they are exempted employees.
it is a benificial legislation and once u have started calculating on 7000 ,now u can not reduce it.
j s malik
Have a nice day,
P.F. Max. Limit as per law 6500/- but on the basis of actual basic 7500/- of employee . u deduct p.f. on actual basic than u fiil up higher rate permission letter otherwise u deduct max. limit 6500/-
wirh warm regards,
Paresh M.Vyas
Advocate & Labour Laws Consultant(M)

During coverage of your establishment under PF & MP Act your employer might have submitted a letter to PF authorities intending to deduct PF on the salary more than Rs.6500/- and to pay administrative charges on such higher salaries. Then only you can deduct PF on higher salaries. Once you have started deduction on higher salaries, you can not reduce the same afterwards. Otherwise the employees drawing salary more than Rs.6500/- p.m. are excluded employee.
thanks & regds,
You cannot do this.As per the Act no PF earning salary can be reduced.However for New recruits you can limit the same to Rs.6500/- per month even though others are covered irrespective of the limits.
Dear All,
There is no harm that the service conditions can be changed / altered with specific notice served on competant authorities as well as the employees as per the statues. So even if you have been deducting pf for basic more than Rs.6500/-, you can serve notice of change of service conditions appropriately to the concerned parties and the comp.authority and start implementing the change after the stipulated time. PF Commissioner as well as the Labour Commissioner of the State or Centre as the case may be have to be notified.
Only maximum is stipulated in the PF&MP Act. Even for exempt employees, deduction for full basic can be made with a consent notice by the employer.
hi everbody pls know about syllabue and sample paper for HR Tranees of power grid corporation
Dear friend,

I have implemented the change of limiting the PF contribution on basic of Rs.6,500/-. Prior to my joining in the organisation, the employees were covered 12% of basic (actual). At the time of increments, I realised most of the employees look at take home salary rather than PF savings. I suggested to the management to make two categories of employees. Managerial and non-managerial. Managerial cadre with 12% of actual basic (to take care of Income Tax under 80 C) and non-managerial with PF limit of Rs.6500/- or actual whichever is less (to increase the take home without disturbing the agreed CTC package). In one of our bi-monthly staff meeting, I got the consent of the staff and I met the Regional PF Commissioner personally and took his approval for implementing this change. This scheme is running smoothly now. I have a better leverage at the time of salary negotiation/increments as well as employees are happy that their take home is attractive. Win-win situation.


Hello Mr. Rahul,
I have a query regarding VPF. If the employee wants to contribute more than Rs.780/-. Do the employer need to take any written document from Employee or do we need to submit any document to PF office. Now we are using e-sewa then also require submitting any documents?
I am unable to see the e-passbook of individual. Itís only for our organization this problem is there or for all other company members also unable to see there e-passbook?
Thanks & Regards,
Prime Sponsor - "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Coô