Dear CiteHR Member,
I need your help to solve a problem. Please tell me if an employee joined with a salary of 5000/- per month (PF + ESI benefits started from his date of joining) and after one year he received a 2000/- increment, so now his salary is 7000/- per month. Could you please tell me if the employer decided to stop his PF contributions because he has crossed the limit of 6500/- (which is the high PF contribution limit)? Is this legally possible according to the Provident Fund Act? What action should the employee take?
Thanks,
Amit
From India, Delhi
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30I need your help to solve a problem. Please tell me if an employee joined with a salary of 5000/- per month (PF + ESI benefits started from his date of joining) and after one year he received a 2000/- increment, so now his salary is 7000/- per month. Could you please tell me if the employer decided to stop his PF contributions because he has crossed the limit of 6500/- (which is the high PF contribution limit)? Is this legally possible according to the Provident Fund Act? What action should the employee take?
Thanks,
Amit
From India, Delhi
Acknowledge(0)Amend(0)
Once a PF paid employer has to complete six months, you cannot stop it immediately. Secondly, 7000 is the basic salary, and then you have to submit PF by calculating 12% of 7000. After six months, you can withdraw his name by showing proof.
From India, Panipat
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From India, Panipat
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Employee Provident Fund and MP Act, 1952.pdf
Provident Fund Act.ppt