My dear friends,
i have one doubt. i am thinking employer side. one employee joined our org & and he crossed basic more than Rs.6500/- from stating now we are maintaining pf or not. if we are not maintaining pf, any problem.......
ple suggest me

hyd executive - hr

From India, Hyderabad
Hr Professional With 13 Years Of Exp.
Hr Professional
Manager- Hr
Hr Professional


Dear Mr. Nagendra,
Warm Greetings!
U have to meet the penality, if u doesnt deduct PF.
If u want to overcome the penality, according to Workmens compensation act, u can take madiclaim policy.
Warm regards,
john Jebaraj N

From India, Madras

Hi If basic crosses 6500 deducting PF is not mandatory. It is optional for the employer. Employer can pay upto Rs. 780/-.or 12% if they prefer to. Regards, AM
From India

Dear Nagendra, AM and friends,
As per a recent directive, the minimum basic salary slab for deduction of PF has been increased to Rs.10,000/- from the earlier Rs.6,500/-. As such, anybody who has a basic equal to or less than Rs.10,000/- has to be given the facility of PF coverage. Else, there will be penal charges as rightly pointed out by John.
In case you do not want to give coverage to your employees under the EPF trust, then either you must provide them with a better coverage than given by the EPF or your employee strength must not cross 20!!
Hope this clarifies your query.
Samba Siva.

From India, Hyderabad

Dear Mr. Nagendra, and friends,

I am very new to this site. Basically we are PF and ESI consultants for past 10 years, and some of our clients faced same situation as yours.

In this regard we had several meetings with regiona PF commissioners as well as with Central PF Commissioner, (CPFC) and they interpreted the law and we were advised as follows:

There are few things to be kept in mind in this situation:

1. If the employee is currently a member of PF, he cannot be detained with the PF benefits ie. he cannot be treated as excluded employee even if the basic salary crosses 6500/-

(on of my friends in this discussion (yajeetheh) has mentioned that the slab has been increased to 10000/-, but I would like to clerify that it is not for PF, but the limit has been increased for ESIC, for PF it is still 6500/-, but in addition I would like to tell that the resolution has already been presented in the parliament, but not yet notified by the house and hence currently the limit is still 6500/-, hopefully in coming parliament session, it may be increased to 10000/-)

2. Now, if he is already a member of the PF then there is an option with you that you can contribute maximum Rs. 780 p.m. (12% of 6500), but in this case this rule should be followed for other employees as well.

3. if presently any other employee of yours is getting more than 6500 and you are contributing equal amount (eg: his basic is 10000 and you are making PF contribution 1200 in his case) then you have to make equal contribution for this employee as well. you cannot treat different employees differently.

4. Now, there is one other option with you, suppose any other employee is getting basic 10000 and you are making contribution 1200 for him, then you can pass a board resolution, and make contribution Rs. 780 p.m. for each employee (passing resolution is applicable in case of limited company).

5. Ooops.. one more thing I forgot to mention, if you are not covered under PF Act, then there is no need to make any contribution towards EPF as he will be considered excluded employee.

Hope I am able to clarify your doubts.



From India, Delhi

Hi Kapil,
Thanks for the correction on PF slab being Rs.6,500/- and not Rs.10,000/- as earlier suggested by me. I stand corrected.
I feel even if the employee is a contributor to PF inspite of his drawing a basic over Rs.6,500/-, it is not mandatory on the part of the new company to continue his contributions to the PF account.
Warm Regards,
Samba Siva.

From India, Hyderabad

Hi, Mr. Kapil is absolutely right. This is as per the law nothing more than this. Abhishek
From India, Delhi
Santosh Iyer

Mr. Nagendra
It is mandatory to deduct PF even if he has crossed the limit of Rs. 6500/-, but in case the employee doesn't want to deduct his PF, he has give it in writing, which has to be submitted to the PF office.
Santosh Iyer

From India, Pune
I have joined workplace on 1st december and my salary is 8,000. I am in a dilema as to whether ask for PF or not because some case is going on against the co. in PF court.Plse advice.

From India, Pune

Dear Siva,
Can u plz send me or tell me the link from where we can download or see the notification that PF slab has been increased to 10,000/-
There is lot of confusion in this regard.

From India, New Delhi

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