PF Deduction Confusion: Can It Continue If My Basic Salary Is Over Rs. 6500?

Hi All,

I have one query related to PF deduction. If an employee's basic salary exceeds Rs. 6500, for example, Rs. 10000, my query is whether PF deduction will continue and if it is possible for the PF amount to be deducted even if I deny the deduction.

Regards,
Sanjay

Hi,

If the basic salary is above Rs. 6500/-, then the amount has to be deducted on Rs. 6500 only. PF is optional for those whose basic salary is more than Rs. 6500/-, but the employer can make the PF deductions mandatory for all employees.

The company is deducting PF contribution at the rate of 12% on Rs. 6500/-. Company and employees are not bound to contribute towards PF over and above the limit of Rs. 6500/-. If an employee is receiving wages above Rs. 6500 per month, the PF will only be deducted on Rs. 6500/-. Wages include Basic, Dearness Allowance, and Retaining Allowance (if any).

Regards

Can anybody let me know what will be the basics for $10,000 and $15,000, and also what will be the employer's and employees' share in the same? Please help me out with this as I am new to this.

Regards,
Vignesh

Hi, I have one query about PF deductions. One company is following Rs. 6500 as the basic for employees whose actual basic is equal to or more than this limit. The company is treating Rs. 6500 as the full month's basic salary for those employees. Depending on their working days, they are calculating the PF deductions based on Rs. 6500, even if their actual basic salary exceeds the limit of Rs. 6500 with lesser working days.

For example, if one employee's actual earning is Rs. 10,000 in 10 days (equivalent to Rs. 30,000 per month), the company is calculating 6500*10/30 = Rs. 2167 for PF deduction.

Kindly suggest if this calculation is correct.

I have a query regarding PF.

1. One employee is getting Rs. 6500 as a basic salary per month, and we can calculate 12% PF from his basic salary.
2. Another employee is getting Rs. 15000 as a basic salary per month. Should we consider PF for only Rs. 6500, or can we deduct any ceiling value for amounts above Rs. 6500?
3. When should we use Form 11?

Thanks & Regards,
Vinas Sekar

Dear Sir,

If a person is receiving a Gross Salary of Rs. 12,142, is it acceptable to deduct the PF amount from his basic salary, which amounts to 40% of the Gross Salary, equating to Rs. 4857?