Is It Mandatory for Companies with Over 20 Employees to Deposit PF if Salaries Exceed 6500?

Hi All,

If an organization has more than 20 employees and no one is drawing a salary less than 6500/- per month, is it fine if they do not deposit PF, OR should all of them deposit a minimum of 12% of 6500 rs, that's 780?

Regards,
Richa

Hi Richa,

As per the EPF Act, the limit is Basic + DA = 6500. If there is no interest from the employee, then leave it.

Kishor

Dear Richa,

As per the P.F. Act of 1952, there is a limit of basic + DA = 6500. This means that if the employee's basic + DA equals 6500 or more, then it depends on the employee's interest whether it is deducted or not. However, if the PF is not deducted, you have to obtain a consent letter from the employees.

Thanks,
Kalpesh Parmar