Re: Minimum Limit For PF? - CiteHR
Saswatabanerjee
Partner - Risk Management
Jeevarathnam
Sr. Manager Hr/admin
Sumitk.saxena
Service/manager-hr
AxitaMehta
Sr.hr Executive
GOD_LEO19
Jr. Hr Manager
Bharathrobin
Hr Consultant
Rameshchandrabose@yahoo.in
Compliance Manager
Bala1985
Hr Manager
Sofiya Setia
Hr @ Fortis Healthcare Ltd
+3 Others

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Hello All, I want to know is there anything like "Minimum Limit" on which PF is not cut? Also, ESI is cut on basic or gross salary? Thanks, Axita
Hi Axita There is no any minimum limit for ESI & PF. There is only Max Ceiling limit for both. PF is deducted on basic Sal & ESI is on Gross
Hi Rajaramesh
ESI
For ESI there is just a maximum limit of Gross Salary Rs 15000/-
If any employees Gross salary exceeds 15000/- then He/She is not entitled for ESI Contribution.
If Gross Salary is Lesser than 15000/- Then employee has to contribute 1.75% on the gross salary and ER has to contribute 4.75% on the Gross
EPF
For EPF only Basic& DA is considered and not gross pay
If Employees Basic+DA is Above 6500/- then He/She is exempted from PF based on certain criterias
If Basic+DA is less than 6500/- Then both EE & ER has to contribute 12% on Basic+DA more over as an admin Charges ER has to contribute 1.61% on Basic+DA
:)

@ Mr.. Jeevarathnam- Thank you & so kind of you to share the information, though I could not totally perceive the
"If Employees Basic+DA is Above 6500/- then He/She is exempted from PF based on certain criterias". What I am able to make out is that if anybody's Basic+DA is above 6500/-then if the e/ee is willing their PF is not cut?
Is this the case. Can you please, elaborate a bit on this.
Thanks,
Axita

Hi Axita
Those criterias are
1) If Basic+DA is below 6500/- PF is mandatory
2) If Basic+DA is above 6500/- due to increment or promotion PF is mandatory. In this case Contribution shall be limited for 780/- is 12% on 6500/- or shall be contributed 12% on full basic
3) If Basic+DA is above 6500/- due to change of job and in earlier company He/She having PH benifits PF is mandatory. In this case Contribution shall be limited for 780/- is 12% on 6500/- or shall be contributed 12% on full basic
In rest of the cases PF is not mandatory
:)

Ok! So in all PF is & legally must be, cut for all the employees. Also, 780 is the maximum amount that's contributed by employers but certainly for employee's it can vary as per their will to contribute to the P.F.
Thank you so much!!

One last query please! Is ESI applicable to trainees as well? Also, the maximum salary for which the ESI deducted varies from state to state or it's 15000 only for all the states. Who decides this limit? Is it mandatory to all or it can be e/ees choice to get the ESI deducted or not?
Both ESI & PF is applicable even for trainees except Apprentice. Both ESI & PF are central Acts. It remains common for entire India. Those Limits are decided by Ministry of Labour and respective boards.
Hi Axita Mehta
If P.F is to be deducted for all employees, then who is an excluded employee under Para 2(f) of the P.F Scheme 1952? and when he will figure?
Regarding your other query on ESI, trainees or apprentices appointed under the Apprentices Act 1961 are outside the purview of teh ESI Act. So far as the wage limit is concerned, kindly refer to Sec.2(9) read with Rule 50 of teh ESI Act and Rules which is self evident.
B.Saikumar
HR& Labour law advisor
Mumbai

Pls clarify for PF, previous year we come to know that for PF not only Basic+Da special allowance also included to it. rgds Shenba

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