Pbskumar2006
General Manager-hr
Sonali Neve
Hr - Generalist - Mumbai
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Prasiddhnarayan
Labour / Corporate Laws
+7 Others

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Hi Everyone,
Please let us know 1 thing. If an employee basic crosses 6500, then is it mandatory to deduct PF from his Salary. Orelse, can we just deduct only PT & pay him the rest the amount as his 'Net Salary'.
In our company we deduct PF for all the employees but recently few new employees starting asking not to deduct PF from their Salary. So, can we do anything favour to employees.
Regards,
Vinay Kumar

For New employees if Basic + DA is more than 6500 then at mutual agreement by Employer & Employee PF can not be deducted.
But once a covered employee is there under PF provision he/she remains covered ireespective of Salary. But contribution can be limit at Rs. 6500

Dear Mr. Vinay ji,
Its mandatory. The PF authorities may incests to deduct for exempted employees minimum Rs 6500/- as a social security purpose.
Apart from its an IT saving of the employee.
Regards,
PBS KUMAR

Those who enrolled to EPF will not be exempted till the temination of service, even if their salary cross ceiling limit. Regarding fresh hands whose salary are above Rs. 6500, the registration with PF is optional. Contribution on beyond ceiling salary (Rs. 6500) is also optional.
Abbas.P.S

Subject - Re: Is it PF Manadatory to deduct from employees basic> 6500 Mr P.S Abbas is 100% write D.K PARASHAR
Dear Member
PF contribution is statutary. We, being Hr people should encourage for PF Contributions.
It helps a lot to the employees not now but on later days
further, tail end subjected to company policy
Regards
Ramesh Y

Dear Vinay,
Yes as per the rules, it is mandatory for person getting 6500/-
& offcourse there are other ways as well as suggested by seniors.
But in other cases, employees, who do not wish to deduct PF from their salary, we can ask them to sign FORM 11.
But yes, there are compulsary deductions for certain salary slabs.
As per the rules, there are certain salary slabs, I guess uptill 15k PF is compulsarily deducted, although you submit Form 11. (Kindly cross check this info as I am not sure about the salary slabs.)
Apart from that if employee is not intrested in deducting their PF from Salary can submit Form 11, to mention that they do not wish to deduct PF from their Salary.
I request senoirs to comment on this.
Regards,
Sonali

dear all
as correctly said, a freshly joining employee drawing the PF Wages ( basic+ DA+Retaining Allowance) more than 6,500/- per month could be exepmted from Provident Fund Coverage, benefits and deductions by submitting Form-11 to the EPFO subject to the proviso that he has not been a member of the provident fund at any point of his prior employment.
However, if the new joinee's basic wages exceed 6,500 per month, he would contribute 12 % of the existing PF wages but the employer shall be enforced upon to pay a contribution of equal amount only to the maximum limit of 6,500/- per month irrespective of PF Wages.
opnce a member falls into the scheme, there is only one provision for not getting deducted PF and that is............he should work only in such an establishment which is covered under the EPF and MP Act, 1952
thanks and regards
prasiddh, goa
9765664475

the ceiling is prposed to be revised. however, there is no concrete communication till the date
lets wait for the time to come. once this happens, employers from all over india will weep with floods of tears mourning their diminished profit margins and in such a situation there will be a VVVVVVVVVVVEEEEEEEERRRRRRRRRRRYYYYYYYYY loud noise enough for evey one to be aware of the hike in the ceiling
thanks and regards
prasiddh, goa
9765664475

Hi Vinay, It is not mandatory to deduct PF beyond Rs. 6,500/- , as of date. As a result, the employee in question can take home a higher net salary. regards,

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