Is Provident Fund (PF) Applicable for Directors? Seeking Clarification from Peers

Hi, can anyone help me? Is PF applicable for directors or not?

Dear Bharthi,

Yes, PF is applicable to all those names on the muster roll, and the upper limit is Rs. 6,500.

Thank you.

Those whose basic salary is below Rs 6500, the PF is applicable to them. But when it goes above that, it is dependent on the employee to be a member of PF or not. They can submit an application for the cancellation of EPF membership.

Hi,

Is PF also applicable in educational institutions having 10-15 staff?

Regards,
JAGJEET

Dear Bharthi,

The director of the company is also an employee. Any employee of the company should be included in the membership of the EPF scheme.

Thank you.

Dear,

If the director of the company is an employee and receives a basic salary of less than 6500 at the time of joining, then he has to be a member of the PF. If his basic salary is more than 6500, then it is the management's choice to make him a member or not.

Thanks,
J. S. Malik

Dear Barathi,

PF will be applicable to all the salaried employees in any organization. I need clarification regarding whether the director is Indian or a foreigner, as this will determine the applicability.

In any case, any employee who is drawing a salary from the employer is eligible for PF deduction.

Ya! Bharati,

PF has to be deducted for employees in the organization subject to the condition that the Wage/Salary (Basic salary/Wage + D.A. + Retaining Allowance + Cash Value equivalent to food concession) should not exceed 6,500/- per month. If the Wage/Salary is higher than 6,500/-, the deduction depends on the agreement between the Employer and Employee. If they submit a joint N.O. Form (Para 26 (6)), contributions can be made as usual. Every employee serving the organization, whether employed as a Director or laborer, must have PF deductions, following the above conditions.

The PF deduction rate is usually between 10-12%, varying by industry.

Best regards,
P. Sathish Kumar

If your director is paid his remuneration as a salary, PF is to be deducted by enrolling him along with other employees. If the director's remuneration is paid as per the Companies Act provisions separately, then PF need not be deducted.