Understanding EPF Eligibility: Do All Employees Need to Join If Salary Exceeds Rs. 6500?

Dear Sir,

I want to know what the parameters are for membership in the PF scheme. If a company is registered with EPFO, is it necessary to deposit the PF of all employees? If an employee is drawing a basic salary of more than Rs. 6500/-, is it necessary to join membership in PF?

Please give an answer to the above, for which I shall be highly thankful.

Regards,
Sudhir

1. If an organization has 10 or more employees, it has to be registered with EPFO.

2. PF is calculated as 12% of basic + DA up to the limit of 6500/- only. Any employee can voluntarily contribute an additional 18% of his basic + DA, but the employer is not liable to make contributions over the statutory limit of 12%.

Dear Sir,

If a company is registered under PF, then employees whose basic salary + DA is less than 6500 at the time of joining are required to be made a member of PF.

Regards,
J. S. Malik

Dear Mr. Malik,

We need to get registered with PF voluntarily. Can you please let me know the rule/section under which it is mentioned that at the time of registration, it is required to make members only those who are drawing BASIC+DA less than Rs. 6500/-? Can anyone who is drawing more than Rs. 6500/- be a member voluntarily?

Your immediate reply is highly appreciated.

Mohandas