PF Cieling Limit As Over 6500 Basic Salary...

Dear Rolly,
If I have understood you correctly, yes you can calculate pf on gross salary of Rs. 10,000(with employer - employee consent), but while putting the breakup your calcualtions would be:
PF : 12% on Rs. 10,000/-
Pension Fund: 8.33% of 6500/- will come to Rs. 541/-
EPF: will be Rs. 659/- i.e. difference between 12% and 8.33%.
Hope it clears.
Regards,
Sashmita

Dear Rolly,
You are bound to deduct upto Rs. 6500/- as per EPF Act. However if an employee is drawing more than Rs. 6,500/- then at the joint request of an employer and employee he can be covered under The EPF ACt.
If say person is drawing salary of Rs. 20,000 and you want to deduct at Rs. 10,000/- then the same is permissible provided both employer and employee agree for it.
P M Patel

In case any employee( not member of PF) basic salary is Rs. 10000 then pf should be deductible or not ? Is employer company bounded to deduct PF on this ?