Saswatabanerjee
Partner - Risk Management
Srinivas M Venkat
Senior Provident Fund Consultant
+3 Others

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Respected Sir
This is Pardeep. I am working with fmcg company from 2006. My company couldn't deducted any PF till date but today company told me that your PF deduction is compulsory start from October onwards so I want to Know that what is the maximum limit of PF deduction my present salary is Rs.57000 / - ( without any deduction ). Please let me know.
Regards
Pardeep
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Hi Pradip, Myself santosh working as a HR professional, PF is deducted on your basic salary which 12% each from your & your employer. Thnks
The statutory requirement is PF deduction at 12% of basic + DA. There is a statutory salary ceiling of ₹15,000 per month, meaning that the maximum deduction is ₹1800. Even if the actual salary levels are higher, the amount of,PF remain same.
The company can deduct more with approval of the employee
How can PF be compulsory on a fine morning on salary of Rs 57000/-pm? Varghese Mathew
You are not eligible for Provident Fund membership statutorily, as you are drawing salary of Rs. 57,000/- . You are defined as excluded employee. If you wish to contribute to the P.F.you can do to so. As this is a welcome gesture from your employer, to provide you welfare of your well being, you can opt for the same. And also you will be eligible for Income Tax exemption for the P.F.contributions. I advise to opt for the P.F.enrollment.
Please let the forum know the Salary Breakup i.e. Basic and or DA if any to give you an appropriate view, as mentioned by above forum members if your Basic+DA is more than Rs. 15,000/- p.m. you can be an excluded from PF membership if desire so.
One correction here
One does not automatically become an exempted employee
As such, everyone is covered under PF
But employees falling under the definition of exempt can opt for exemption by filing an application (form 11)
But I agree with you, it's a good idea to opt for PF.
It carries 8.5% tax free income, plus tax benefits and retirement fund, all of which are important

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