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is PF deduction for 6500 is compulsory. becoz one company is not deducting PF of employee becoz all employee Basic is more then 6500.
From India, Mumbai
Hi,
It is manadatory. If the salaries of the employees is more than 6500, then PF deduction is to be calculated at 6500. However, if the employer is free to deduct the PF for higher amounts also.
Naresh Taneja

From India, Mumbai
Most companies believe in "Deep Pocket theory" when it comes to compliance. Like thieves they think they shall never get caught and are willing to take risks surya
From India, Delhi
Any Indian organisation which has 20 or more employees (not daily workers) are obliged to cover their employees under the EPF fund.
For international organisations based in India, it is not compulsory but if the employer wants to offer this social benefit to its employees it can apply for membership.
For organisations which have less than 20 employees, a voluntary membership can be obtained wherein the employees have to sign a declaration.

From India, Gurgaon
HI,
The PF deduction is mandatory for a person whose salary is equal to or more than 6500. The amt. deducted is fixed to 12% out from Basic Salary deducted both from the employee and the employer share.
But the deduction made out of employer is divided into 2 parts in which:
8.33% of the amt. will be going to the Pension fund-1995
3.67 towards the PF.
Those companies which do not imply the rule will be in trouble while there is any inspection conducted by the concerned authorities.

From India, Bangalore

Attached Files
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File Type: doc contribution_198.doc (25.5 KB, 462 views)

It is mandatory if the person is earning 6500 or less.
But if the person at the time of joining is earning more than 6500 then it is upto the company to pass the benefit of PF however if person joining on less but now earns more then deduction must be continued.

From India, Pune
i think both are correct,any way we have to face a risk during the inspection if we implement anything new without consulting lawyer,isnt it
the lawyers also suggesting that deduction for employer's contributions should be worked out for upto the salary Rs.6500/-
such suggestions are only in verbal words.

From India, Coimbatore
Dear All,
For salary ceiling limit 6500.00 there is provision as follows,
1. It is mandatory to cover and deduct the P.F. contribution @ 12% of basic wages if Basic wages is less or equal to 6500.00.
2. If Basic wages more than 6500.00 than the coverage shall be voluntary. but if an employee is already a member of P.F. than employer has to cover him even his/her basic wages more than 6500.00
Note: - (it is the reason why employer got filled Form 11 Declaration by a person taking up employment in an establishment where E.P. F. scheme is enforce, to know about the status his previous membership of E.P.F.)
Moreover, If a person joining on more than 6500.00 basic wages and previously he was not a member of E.P.F. than it is not obligatory to cover him under the E.P.f. schemes. such employees defined as "EXCLUDED EMPLOYEE" under the Act.
Hope it will clarify the doubts on the subject. For more can write further
Mohd. Arif Khan


Dear Mohd. Arif,
If any establishment/ industry/ office have employed 10 or more people, they should cover under PF scheme. The ceiling to deduct upto Rs. 6500/- but employer can deduct voluntarily if the basic beyond Rs. 6500/-.
If all employees basic+DA beyond Rs. 6500/-, that establishment may exempt from PF. Once any employee cover under ceiling limit, the PF is appliable to them.
Regards,
Bhushan

From India, Mumbai
Hello,
In my previous Job my P.F was deducted, however at the time of resigning the job I elected to withdraw the amount.
Now i have joined a new firm , a pvt. concern and i choose to not to elect for P.F deduction.
will this matter in any case??? My basic is 6500/- and i don't want to deduct P.F .. Is there any way i can get exempted...

From India, Bhopal

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