Is My Company Allowed to Exclude Provident Fund from My Salary Package?

Hi all,

I have recently joined a company, and the salary they are providing me does not include provident fund. The information conveyed to me is that there is a provision for this as my basic salary is 9000. Is the company allowed to do so?

Thanks & regards,
Abhi

Yes, it's true. Actually, if your basic is more than 6500 INR, then it's up to the company to give PF to you or not.

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Thank you, guys. So, what do you say? Is it good to have a basic salary less than 6500 or is it better to have a higher basic salary?

I believe the legislation has changed. Employers have to contribute PF if employees are earning Rs10,000 or less per month.

Dear Friend,

Please check with your local PF authority for the correct details. I have received information that if the BASIC SALARY is more than Rs. 7,500, then the employer provides an option for the employee to OPT OUT of the PF.

Please verify the same.

Only in case it's your first employment, opting out of PF exists for a salary of 8500 or more; otherwise, it's a must to deduct PF regardless of the salary. It's your right and future saving...DEMAND IT!

The limit is 6500.00 (Basic + DA). It becomes voluntary for an employee to make deductions above that. However, it is compulsory for the employer to deduct up to 6500.00. Beyond this amount, it becomes voluntary for an employer to make deductions above 6500.00. The statutory limit is 6500.00.

Abhijeet