Sr. Manager Hr/admin
Primus Techsystem
Karthikeyan E
Associate Personnel
Assistant Engineer, Indian Telephone Industries,
Ashutosh Thakre
Hr Professional
Administration & Hr
B. Sreenivasulu
Retd. Manager-admn. & Per.
+2 Others

Dear All,
After increasing the PF ceiling wages from Rs.6500/- to Rs.15000/- PF deduction raised from Rs.780/- to Rs.1800/-(If basic more than 15k). Is this increment burdening for employees? In our company all employees says its more.

From India, Bangalore
Madhushree, Presently it is burden no doubt. but the same amount is from employer. rate of interest is also good. ramakant
From India, Pune
But i heard that PF amount will get only after retirement age not before. If any money emergency comes??
From India, Bangalore
Hi Madhu
If the basic amount is above 15000/- then you can restrict the contribution to 15000/- and if it is less then you have to pay 12% on the wages. Already there was huge discussions regarding the burden but there is no any other option. It is also a savings for the employees for future
PF amount can be taken on the following conditions
Medical Emergencies
Purchase / construction of house
Self or kids marriage
Higher education purpose

From India, Bangalore
I shall quote the various provisions to avail non refundable loans from PF, provided a minimum employee contribution (with interest) of Rs. 1000 is lying with PF.

1. 68(B) -Towards house construction /purchase/ plot purchase etc. Minimum service required - 5 years. Amount admissible - 100% of both employee & employer contribution.

2. 68(H) - Towards 2 months or more lock out (due to other than strike). No minimum service. Amount admissible - 6 times of basic+DA or employee contribution, whichever is less.

3. 68(J) - Towards one month hospitalisation, major surgical operation, diseases like leprosy, TB, cancer, mental retardation etc. No minimum service, but for out of ESI coverage members. Amount admissible - 6 times of basic+DA or employee contribution, whichever is less.

4. 68(K) - a) Towards post metric education of children.

b) Towards own/brothers'/sister's/children's marriage. Maximum three times in service. Minimum service required - 7 years. Amount admissible - 50% of employee contribution.

5. 68(N) - Applicable for physically handicapped towards purchase of equipment to reduce handicapness.Amount admissible - 6 times of basic+DA or employee contribution or cost of the equipment, whichever is less.

6. 68(NN) - After attaining an age of 54 years and before one year from the date of superannuation, whichever is later. Amount admissible - 90% of both employee & employer contribution.


From India, Bangalore
Dear Madhushree,
First you need to start beleving that PF is not a burden. The amount comes handy when a person retires as he gets pension and also a lumsum amount. This is not possiable if all start beleving that PF is a burden.
Most of the people who think that way, are the hoppers or feshers. Freshers i can understand the need for more money in hand, but with hoppers, this is just an excuse.
It is s forced benefit, which has its value, when money stops pouring the way it currently pours.
Ashutosh Thakre

From India, Mumbai
Dear Seniors,
Greetings to all,
One of our employee is working in our company from past 2 years, Previously he had worked 4 years in another one company and that EPF amount is transferred to current EPF account. My question is, Is he eligible for loan from EPF for purchasing of flat (Loan eligibility is min 5years).

From India, Madras
Dear Karthik,
If the PF has been transfered, then he is eligible as it says that the 5years critia is for countinous 5 years, here it is 4+2 6 countinious years. It does not make a difference, if those 5 years are in the same company or different companies.
Ashutosh Thakre

From India, Mumbai
Dear Madhu,
PF is not a burden. It is a social security that every employer needs to provide. Both the employee and employer contribute the same amount towards PF.
Either you can restrict the Basic to Rs. 15000/- or irrespective of Basic 12% will be deducted from the Basic of the Employee.
Regarding withdrawal, it is already mentioned under what are the circumstances he/she can withdraw.
WArm regards,
Pranab chakraborty

From India, Mumbai
Never ever think PF is burden, it is boon for private sector employees and it allows you to get a pension at retirement times. As many of collegues put it across, it can be used part during funds crunch as explianed.
From India, Ernakulam

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