Law Practice
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Disha G.
Human Resource
Sandeep Todi
Strategy Leader
Assistant Engineer, Indian Telephone Industries,
Hr, Ir, Law, Disc. Matters
Agm - Hro, Compensation & Benefit Mgt,
Eswararao Ivaturi
Ex-manager (pers&adma)
+4 Others

Dear All,

I have one query, please let me give the solution.

We are very small organization and we are deducting the PF amount within the limit of 6500/- Rs.

Our Case is;;

In the last month, one of the employee met with an accident and she attended her duty from 1st sept. to 20th sept. 2013 then after 21st she met within an accident and remaining days she not attended her duty. And her salary of these 20 days is Rs. 8000 (Basic only). So, can we deduct the PF amount like 6500/- * 12% of what?

Her salary is deducted from the month of Sept. 2013. (10 Days)

i.e. calculation is like

1. If her 20 days salary is crossed the limit of 6500 then we can deduct the PF is 6500*12%

2. and if her 20 days salary is crossed the limit of 6500 and she not attended her duty remaining 10 days and if her salary is crossed 6500 then we consider accordingly her present days only and we can deduct pf respect to (6500/30)*20 days * 12% .... Is it ok

Please give me solution about this query… please.


Disha G.

Human Resource Department
11th October 2013 From India, Ahmedabad
Hi you can deduct pf on actual drawn basic for 20days and pay.there is no need to pay on Rs.6500/-. the calculation formula shown by you is correct.
11th October 2013 From India, Hyderabad
Dear Disha,
Even if the salary is in excess of Rs. 6500, ceiling salary will be treated as 6500 for whole month. Accordingly for 20 days attendance out of 30, the contribution will be 6500x20/30x12% = 520.
12th October 2013 From India, Bangalore
You must understand that PF is a fixed contribution and you can not decrease it. It has either to be paid on the basic salary or on 6500 ( keeping in mind , Cap aspect).
If i am not wrong, you are misunderstanding the concept of basic salary and gross salary. Plz clarify

12th October 2013 From India, Delhi
As per the details posted your employee is drawing more than Rs.6500/- She is not covered under EPF scheme1952 under section 2(f).
According to Section 2(f) EPF Scheme 1952 : excluded employee” mean—
(i) an employee who, having been a member of the Fund, withdrew the full amount of his accumulations in the Fund under clause (a) or (c) of sub-paragraph (1) of paragraph 69;
(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds [six thousand and five hundred rupees] per month;
Very recently the limit of Rs.6500/- is enhanced in an amendment to the said Act.
12th October 2013 From India, Bangalore
If you are contributing PF for the employees with basic above Rs 6500/- subject to statutory ceiling,then in this particular case the basic for 20 days will be deemed as 6500x20/30.
Varghese Mathew
13th October 2013 From India, Thiruvananthapuram
13th October 2013 From India, Bhubaneswar
PF is always deducted on the salary earned during the month. If the salary exceeds Rs.6500/- Statutorily you can restrict deduction upto Rs.6500/-. If you are already contributing/deduction PF on full salary (i.e in excess of Rs.6500) then the PF should be deducted on the actual sum paid.
13th October 2013 From India, Vellore
Well, I have seen all the discussions. But one thing is sure that, none is talking of the limit of 6,500. Please note that the limit of Rs. 6,500 is related just not to a mare figure but to month. In other words, salary of Rs. 6,500 per month is the limit.
In this case though salary is Rs. 8,000 p. m. and for full working days the limit of Rs. 6,500 pm can easily be applicable. But it is confusing when salary earned is less than the prescribed limit of Rs. 6,500 p. For 20 days of work, the under ceiling salary will be Rs. 4,333 and over ceiling salary will be 1000, thus making a total of Rs. 5,333. (Amt. in paisa ignored). In my opinion, the PF should be only on Rs. 4,333 i. e the under ceiling salary and not on entire salary of Rs. 5,333. This logic is necessary to be sorted out because for computer programs, such points put a good hurdle.
Adv. K. H. Kulkarni
14th October 2013 From India, Kolhapur
The contribution of Rs 520. is correct as posted by Mr ABBAS and Mr KULKARNI. Varghese Mathew 09961266966.
14th October 2013 From India, Thiruvananthapuram
Employeees whose salary
(Basic+DA) is Rs.6500/- or
below are eligible to cover
under EPF Act. Deduction of
PF is proportionate to the
actual no. of days an employee worked during the month.Ofcourse EL/PL to be taken into consideration
for this purpose. So if any
employee worked for 20 days
during the month, deduction
of employee\'s and employer\'s share should be worked out accordingly.
Eswararao Ivaturi.

14th October 2013 From United States, Cupertino
To Disha G. The contribution of Rs. 520/-is correct,as posted by ABBAS,KULKARNI,MATHEW JAYANT_ Corporate manager-H.R./I.R. 7875757963
14th October 2013 From India, Pune
Dear All Seniors..
Thanks a lot for your very useful and valuable support. I am really very appreciate your response.
Sir, I also want your help for Gratuity Withdrawal for our employees. We are deposit Gratuity amount into LIC and There are two Case..
1. One of the employee has completed his 4 years 5 months and 28 days in organization.. So my question is that Is he can able to withdraw the Gratuity?
2. One of the employee joined our organization before 10 months and he expired before 3 months ago. So my question is that Can we withdraw his Gratuity from LIC?
Please help me for these both cases and if possible the also send me the claim form which we have to submit in o LIC. for Gratuity withdrawal.
Thanks in advance.
Disha G.
15th October 2013 From India, Ahmedabad
Dear Disha G.

The arrangement of payment of Gratuity by subscribing to the LIC group Gratuity Scheme has many benefits to employees. One such benefit is that, ( I am bit hesitating in calling this as a benefit in this case ) in the event of a death of an employee while in Service, the successors get the entire amount of Gratuity as if the deceased has worked till his retirement. So as regards your case no. 2, please go for the claim of the entire amount by considering 10 months service he rendered with company prior to his death together with the future part of years till he would have been retired.

As regards the case 1, the period of service is just little short to 5 Years Mark. However, you have not mentioned the reason of his leaving service. Please note the reason of leaving is important factor for deciding Gratuity. . What I suggest that instead of over emphatic and too much clerical about the period of Service, i can safely say that the employee is entitled for gratuity. The benefit of a minor shortfall should go the employee.

Adv. K. H. Kulkarni
15th October 2013 From India, Kolhapur
Dear sir, Madam
I have one query, please let me give the solution.
i am in hr dept looking for pf and esic one year back issues mistake. active employee pf settled but till date i have paid the pf amount same number
Please give me solution about this query… please
18th October 2013 From India, Ahmedabad
Dear sir, Madam
I have one query, please let me give the solution
pf is settled around 5 years services but employee has been working till date what is the next step. resigned employee instead of active employee was pf settled but till date he has working same organisation same pf number
Please give me solution about this
18th October 2013 From India, Ahmedabad
Hellow, PF is deducted on Basic and DA. Employees who
joins the organisation and
draws Rs. 6500/- or below
are covered. After joining the organisation,eventhough
the limit is crossed, thePF
is deducted on Rs.6500/- only. This amount is calculated on actual working days during the month taking into account
any paid leave.
Eswararao Ivaturi.
Beyond this employee can

28th October 2013 From United States, Cupertino
You can go ahead and calculate PF on 20 days pro-rated Basic salary. That’s the norm for PF deduction, and it is never on the basis of Wages, rather it is on Wages earned.
4th November 2013 From India, Chennai
Dear all: I had an occasion to discuss the matter with RPFC and he was of the firm opinion that there cannot be any proportionate reduction in PF contribution in relation to the attendance of the employee. PF is payable on the wages earned and not on the rate of wages. So if the employee draws wages in excess of Rs. 6500/- even though there is reduction for the absence, then PF is payable for the amount of Rs. 6500/- but if the wages go below Rs. 6500/- it has to be on the full amount. Is there any guideline from the office of Chief PF Commissioner??. KK
5th November 2013 From India, Bhopal
If your opinion is accepted a person who works for all days of the month and who have not will get equal contribution.The RPFC would have said so to get more money to Fund. On my inquiry with Kerala PF official proportionate recovery is correct.
Varghese Mathew
5th November 2013 From India, Thiruvananthapuram
Dear Disha, PF should be calculated on Basic . If her basic is Rs. 8,000/- then PF will be 12 % of Rs. 8,000/- . Regards, Srinivas
5th November 2013 From India, Hyderabad
Dear Mathew sir, I know a case where a contractor had deposited contribution on the proportionate basis but ultimately had to pay up at the rate of Rs.780/-pm on the orders of RPFC. I had discussed the matter then with the RPFC and he was stessing as per Section 6 of the Act mandating for payment of PF contribution on the wages being payable to each of the employees covered under the Act and on the definition of para 2(f) of EPF Scheme stating that that an excluded employee is only those employee who draw wages exceeding Rs. 6500/- per month. Although I pointed out that in case the wages of an excluded employee drop below the Rs.6500/- limit, if the employer have to pay contribution for such instances then it will be an anomalousd situation. But he was insistent on his interpretation. There would surely be some official circular from PF organisation, the readers would be benefitted if it is made available. KK
6th November 2013 From India, Bhopal
Dear K.K.Nair,
Mr. Varghese Mathew is right in this regard. Salary is meant for one month attendance. Out of two employees with same salary but different in attendance, the earning amount will be different. Accordingly all statutory deductions related to salary will also be different. Otherwise those who have less attendance will be more beneficial atleast in terms of PF. If you have experienced a slippage from any of the RPFCs, It should not be taken as a record against the general ethics and precedences
7th November 2013 From India, Bangalore
Dear all: Let not the vagaries of PF officials decide the matter, and let us get the official version which would surely be there. KK
7th November 2013 From India, Bhopal
a have done the pay ment in may2018 but miss the ncp , how can now chngw the ncp
29th October 2018 From India, Raigarh
Dear All
++++++++++++++ Thanks for your inputs. Wish a happy and prosperous festival of lights, DIWALI +++++++++++++
5th November 2018 From India, New Delhi
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