Navigating PF Contributions: What Forms to Use When Salary Exceeds 6500?

Hello Friends,

Please explain the following:

1. If an employee and employer are both willing to contribute to the PF on more than 6500, then in that scenario, which prescribed form should we fill out and send to the local office?

2. If an employee whose basic salary is more than 6500 is not interested in becoming a P.F. member, which type of form should be filled out?

Please provide a brief explanation as soon as possible. This is urgent.

Peeyush Nigam

Dear,

In my view, you should establish a system, whether you want to contribute on or above 6500. Have a uniform system for all. Do not make choices based on individuals. However, legally, you can choose whether to contribute or not above 6500.

Regards,
JS Malik

1- If an employee and employer are both ready to contribute to the PF on more than 6500, then in that condition, which prescribed form should we fill and send to the local office.

ANS: No separate form is required; however, the employer is required to deposit administrative charges on higher wages. This must be duly recorded in Annual Returns (3A/6A).

2- If an employee whose basic salary is more than 6500 is not interested in becoming a P.F. member, which type of form should be filled.

ANS: It is not legally binding on the employer/employee to grant membership to a non-member whose starting wages exceed Rs 6500/-

For point no. 2, the employee has to give a declaration in Form No. 11 for exemption under the EPF Act.

Rajendra Bhavsar

True, the employee has to give a declaration in Form No. 11 for exemption under the EPF Act. However, will the PF office provide any acknowledgment for the same.

If the salary is less than 6500, does an employee have an option not to contribute to PF? In that case, would only the employer contribute?

Dear Manukarnika,

PF deduction for employees drawing less than Rs 6500/- is statutorily binding. There is no element of choice.

If the salary is less than $6,500, then neither the employee nor the employer has the option to move out of the EPF Scheme 1952. It is mandatorily applicable.

Form No. 11 is to be kept with the employer and to be produced before the PF Enforcement Officer during his inspection for verification.

Regards,
Rajendra Bhavsar
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