Anil Kaushik
Chief Editor,businessmanager
Rahul Sethi
Narayana Murty
Senior Manager-hrd
India's 1st Strategic Strengths Coach, Corporate
Sr. Hr Executive
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Jasmine Naik
Officer (hr And Administration)
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Finance & Admin Manager
Govt Servant
+4 Others

hi to all,
please advise, Is Provident Fund Deduction is applicable for basic salary more than Rs.10000/- p.m.
if so, please inform whom are exempted for P.F. deduction or whatever it is.
please send u r replies to or you can contact me on mobile 98481 38928.
23rd December 2005 From India, Visakhapatnam
Hi Mr Murty, check the discussion "How to calculate PF" under Human Resource Manangement section. This would help you. Deepu
23rd December 2005 From India, Delhi
Dear murthy,
Wge limit under EPF act to cover an employee is Rs.6500/ per month.Any employee drawing wages more than above will be termed as excluded employee provided he is not already a member of PF.if he is already a member of PF then his PF deduction will be on 6500only.
anil kaushik
7th May 2006 From India, Delhi
Dear Friend,
According to the Act, The celling for the PF deduction is Rs.6500.00pm. If the Basic is more than Rs.6500.00 then it depends upon the policies of the company. If the company thinks fit than the company can pay employer share.
If the employee does not want to become a member of PF & Pension Fund., in that case employer must take unwillingness from the employee in writing
21st June 2006
Hi guys,
The wages ceiling of Rs.6500/ is statutory. Employees above the ceiling are not to be covered. But most of the Employers cover their Employees under the Principle of Equity.
I know some of the Employers, are not covering the persons who are in the category of above( the Basi+ DA) is Rs.6500/ and also if the Pay enhanced due to Pay Revision or Incremental effect, the employer recover only upto to the extent of Rs.6500/- only for their employees who are already as PF Subscribers on Rolls.
Hope this clarification clear your doubts upon the same.
With Warm regards,
Narayana Murty BV
Hyderabad Cell No: 9394712629
Tel: :D 040-23431552
6th October 2006 From India, Visakhapatnam
Dear All,
If you look at the PF act, it is clear that deduction of PF above monthly salary of Rs.6500/- ( Basic+DA) is exempted only if he is a newly recruited employee. More clearly, if a person's salary (Basic+DA)was increased from 6000 to 6700 the employee will not be exempted, but he has to pay @12% of 6500, the wage ceiling.
The act also explains that with mutual consent from both parties higher contributions can be paid.
In your question you mentioned only Rs.10000/ pm as salary.
1. if you mean the salary as basic+da for a newly joined employee it is exempted
2. if the basic+da is less than 6500 it is applicable
3. if that is an employee on the roll for past years and if the salary has been increased to 10000 it is again applicable up to the ceiling rate of 6500/-
14th May 2007 From India, Thiruvananthapuram
The 6500 limit is ESIC, if employee salary is less that 6500 then ESIC is applicable... but these days rarely in good orgns basic salaries are less than 6500... Regards mahesh luthia
5th June 2007 From India, Mumbai
There has been a revision in ESIC limits. The limit has been increased to Rs. 10000/- p.m. I understand this happened w.e.f. Oct 2006.
Also, I understand that the employer contribution toward PF need not exceed Rs. 780/- p.m. The employee's contribution will be 12% of basic, but the employee has the option of not paying PF which is more than 780/- p.m.
5th June 2007 From India, Mumbai
There is one more option available as per the PF Act, it is possible for both the employer and employee to pay higher contribution on mutual agreed conditions.
There is no such limit like maximum of Rs.780/- but as an employer you can give more contribution for the benefit of your employee.
7th June 2007 From India, Thiruvananthapuram
Why PF dept will pay interest on higher contribution. In Act, it is clearly mention that when basic & d.a. is above Rs.6500 at the time of joining then he may not become the member for PF. But employers contribution is limited to 12% on Basic & D.A. but employee can increase his share upto 20% but only after prior permission from PF Commissioner.
Without permission, pf dept will not pay interest on extra amount deducted as pf contribution i.e. over & above 12%
Sachin Yadav
7th June 2007
Dear Mr.Yadav, EPFO, Mumbai
For my information, kindly inform me, under which Section of EPF & MP Act, 1952 or Para of EPF Scheme 1952, it has been made mandatory to apply to Commissioner for contributing to VPF and where is the ceiling of 20% on VPF mentioned.
Also kindly inform me, is there any provision in the Scheme to refuse interest on PF accumulations of an employee if he is contributing over and above the mandatory limit.
Request your input as we have to make a corporate policy and supporting documentation.
9th June 2007 From India, Mumbai
Wage ceiling for PF is Rs. 6500/- (Basic)
Employee conntribution (12% on Basic) goes to PF Account No 1.
and Employer contribtuion (12 % on Basic)
Account no 10 (Pension Fund) 8.33 % up to Maximum limit of Rs. 540/- and rest (3.67%) goes to Account no 1.
Rs. 10000 Gross is wage ceiling for ESIC w.e.f 01.10.2006.
14th June 2007 From India
Dear All,I am working as HR executive in small Pvt. Ltd. company (employee strength 30), Please advice on the following:We reached 20 employee strength in June 08, and applied for PF No. by submitting challan and other docs. As per company policy, for those who have basic salary >6500, we are deducting 12% of 6500 instead of 12% basic.However, as per management decision, salary structure is being changed w.e.f. 1st July 08. Please advice me how to proceed with PF deductions for the month of July afterwards. How much should I deduct for PF for those employees whose basic salary is now more than 6500 but earlier it was less.Is it permissible as per the law? please reply as early as possible. your help will be highly appreciated.With regards,Jasmine Naik
7th July 2008 From India, Mumbai
Dear Jasmine,
Simply Have a consent from the employees who has got an increment and now their Basic+DA has crossed 6500/- saying that whether they want deductions at a higher rate or the Rs. 6500/- at the same time make them understand Employer will not be liable to pay more than Rs. 780/- (12 % of 6500). If they Agree to deduction @6500/- Matching Cont. will be a Paid by Employer and If They Tend to Get deducted ata higher rate Employer Will pay at limit, However looking at employee's welfare employer is also free to contribute at a higher rate maximum up to 24 % of Basic both in case of Employee and Employer.
7th July 2008 From India, Delhi
hi try to contibute more for the employee from the employer side we can satisfy and get our work done
7th July 2008 From India, Madras
PF deduction should be on BAsic + Da but let suppose gross salary is 50% basic 25 % hra and 25% con then deduction of PF on basic is correct.
Is any law for the same bcoz i am not able to find any goverment MO on same.:icon10:
Sanjay Purohit
Sr. HR.
9th May 2009 From India, Lucknow
hi Ryan, i know taht the limit of ESIC is 10,000 but the 10,000 need to be gross salary or salary after deducting P.F.??? Please help Jyoti.
16th May 2009
The employee is on probation for 6 months. Is it correct that he needs to pay PF only after he gets a confirmation? Kindly clear this Kavita Mumbai
13th March 2010 From India, Mumbai
Hi Kavita, It is not correct that cont towards PF can be only after confirmation. As per Act the PF cont need to pay since the day of joining. Regrds, Sanjay Gupta, Noida
13th March 2010 From India, Delhi
Dear Members,
we take a example of a new company, where the company had a roll of 50 people and all employees basic salries are more than 10000/- , whether the PF act applicable or not, what more compliance we have to do in this case.
19th December 2012 From India, Mumbai
hi to all, please advise, Is Provident Fund Deduction is applicable for basic salary more than Rs.10000/- p.m. please contact me on mobile 98481 38928.
12th March 2013 From India, Hyderabad
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