Hi Seniors, Please suggest to me, If any employee gross salary 80000/- so his basic salary 40000/-. So can I deduct the EPF on 15000/- basic salary or 40000/- basic plz suggest.
From India

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EPF is optional for individuals drawing a salary of more than Rs.15,000 per month.
From India, Jaipur
PF is deducted at 12% of Wages subject to a maximum wage limit of ₹ 15,000
Therefore, you need to deduct PF on 15,000 only.

If the employee wishes to deduct 12% of the full basic and da, he has to give a request for voluntary deductions. The company need not pay additional amount beyond the statutory limit.

Let me also make it clear. PF is not exempt for those drawing salary beyond 15,000.
They are exempt only if they join your organisation at a salary of above 15,000 and does not have any PF account at the time of joining, and also they opt for being exempt.

From India, Mumbai
You can deduct PF either on the whole amount paid to the employee, ie, Rs 80000, or on the part of it described as basic pay, ie, Rs 40000 or on Rs 15000. If you deduct and contribute PF on 15000 in respect of an employee who is paid more than Rs 15000, the PF will not raise any question because PF cannot be demanded on an amount exceeding Rs 15000 though the employer can very well contribute PF on any amount without any limit. Therefore, decision to deduct and contribute PF in respect of an employee whose salary exceeds Rs 15000 is purely a managerial decision.
From India, Kannur

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