Understanding PF Deduction and Salary Threshold under EPF Act: Insights and Clarifications

Can anybody clarify the PF deduction slab? Is there a specific slab for PF deduction, or is it optional for every employee?

There is no slab, but an employee whose salary (basic + DA) at the time of his joining is not more than Rs 6500 is to contribute 12% of such salary to PF. A similar contribution by the employer will also be made for him. However, for an employee who joins an establishment with a higher salary than Rs 6500 is excluded from PF.

Regards, Madhu.T.K

Hi there,

There is no fixed slab for PF deduction of an employee. However, if any establishment or organization comes under the purview of the PF Act, and if the employee joins as a permanent employee, EPF will be deducted from their salary at 12% of the basic amount. The same amount will be contributed by the employer.

I have doubts regarding any exemption from EPF if an employee is receiving a salary of more than Rs. 6500.

Regards,
Tarun Kumar, Kolkata

If the salary is equal to or below Rs. 6500, there is no option to exclude the particular employee from PF, provided the employer is covered under the EPF Act 1952.

Also, even if the salary exceeds Rs. 6500, those who are already registered with EPF have no option to opt-out of PF.

Abbas.P.S