subhra500
What is the minimum & maximum salary range for deduction of PF? What is the contribution period of PF when a new employee joins in the organization and his UAN no. needs to be created?
From India, Kolkata
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Saswatabanerjee
Partner - Risk Management
+1 Other

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S. KUMAR
6

Dear Subhra,

The monthly salary up to Rs15000 is maximum limit for PF. Employer -Employee may consider more the 15000 limit.The deduction of PF is on Basic+DA+Retaiing allowance.The employer cannot reduce the wages after once your pf deducted.

Skumar

From India, New Delhi
saswatabanerjee
2355

I am not sure of your query, next time please write it clearly.

However, based on what I understand you are asking :

There is no minimum salary for PF. PF is to be deducted even if the employee gets ₹ 1. However, you need to pay the minimum wages as per the state notification under minimum wages act.

Once PF is paid for an employee, it continues to be paid irrespective of how high his salary goes. However, once his salary crosses ₹ 15,000 you need to pay 12% of ₹ 15,000 and not on his full salary.

(Salary is Basic + All Allowances than HRA, Overtime and allowances paid specifically to defray actual cost of working at a particular place)

The only exception is where the employee joins a company with a starting salary of over ₹ 15,000 and does not have an existing PF account from previous employments, then he can be considered exempt and he can opt out of PF.

From India, Mumbai

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