PF Limit On Salary Upto 6500/ N Which Section Or Rule Of Provident Fund Act. - CiteHR
Statutory Complaince/labour & Employment
Hr Head - Garment Factory - Bhiwandi
Nirav Gandhi
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PF limit on salary upto 6500/ n which section or rule of Provident Fund Act.
Please see the definition of Exculded Employee.
Proviso to Para 26A(2) clearly provide that the amount of contribution shall be restricted to Rs 6500/- only.
(2) Every member employed as an employee other than an excluded employee, in a factory or other establishment to which this Scheme applies shall contribute to the Fund, and the contribution shall be payable to the Fund in respect of him by the employer. Such contribution shall be in accordance with the rate specified in paragraph 29:
Provided that subject to the provisions contained in sub-paragraph (6) of paragraph 26 and in sub-paragraph (1) of paragraph 27, or sub-paragraph (1) of paragraph 27A, where the monthly pay of such a member exceeds 20[six thousand and five hundred rupees] the contribution payable by him, and in respect of him by the employer, shall be limited to the amounts payable on a monthly pay of 20[six thousand and five hundred rupees] including 21[dearness allowance, retaining allowance (if any) and cash value of food concession.]]

Find attached File of Act for PF Limit of Rs. 6500

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File Type: pdf PF Limit 6500 Act Note.pdf (381.7 KB, 5255 views)

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my company wrongly treated my gross salary as pf wages and deduct 12% from the gross ie 20000 and deduct 12% for 20000 is 2400, now can we change the pf wages to 6500 and pf 12% i.e. 780? is it possible? Please let me know.
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Dear Gopalkrishnan, ps mention ur salary stracture then we can decide ur excatly pf to b deduct from salary
Hello Sir,
As per EPF Act - 2012 EPF Salary limit is Rs. 6500/-.
For e.g. Basic + DA = 12% PF
If Basic is Rs. 3562 + DA is Rs. 2912 = Salary is Rs. 6474/- so the EPF amount is Rs. 777/- (12% of 6474/-)
But if Basic is Rs. 3699 + Da is Rs. 3024 = Salary is Rs. 6723
What will be the PF amount deducted from salary Rs. 780/- (12% of 6500/-) As per Rule or Rs. 807/- (12% of 6723)

Dear Bhakti,
The thumb rule for PF contribution is -
a) If employee basic +DA is less than 6500 - then employee has to mandatorily contribute 12% of basic +DA towards PF. Employer must contribute 12% of Basic +DA
b) If employee basic+da is more than Rs6500/- then - employee can choose to contribute either Rs.780/- or 12% of basic +da towards PF. Employer neednot contribute more than Rs.780/- (plus 1.61% of admin, edli) (There is a process to be followed for this, which I can describe in details if you wish)
Therefore as per your eg: -
- if Basic is Rs. 3699 + Da is Rs. 3024 = Salary is Rs. 6723 - depends on the employee - if the individual wants they can opt for limiting it to Rs.780/- ; alternately if the wish they can continue with full 12% i.e. Rs.807/-
Hope this helps.
Deena Jagasia

Can any one help us to arrive the contract labour wages pf liablity. if i engaged any contract labour and paying minimum wages. on what ground the pf and esi libility will arrive. for example i am paying daily wages of Rs.250/- for 26 days, what is the pf liability and esi libility?

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