Is There a New Limit for PF Deductions Beyond the Old Rs. 6,500 Ceiling?

Can anybody tell me about the compulsory deduction of PF amount which was earlier Rs. 6,500/-? Is there any change in this limit?

Thank you.

Please let me know if the basic is more than 6500/-, will P.F be deducted?

Can we deduct more than 12% from an employee (if the employee wishes to do so) and up to how much maximum percentage can we deduct?

Waiting for responses from seniors.

Regards,
Sree

Please let me know if the basic is more than 6500/-, will P.F. be deducted?

Can we deduct more than 12% from an employee (if the employee wishes to do so) and up to how much maximum percentage can we deduct?

Waiting for responses from seniors.

Regards,
Sree

Hi Niranjan,

PT is deducted from the total gross pay. This amount is also added if you sanction leave.

Sandhya K

Dear All,

There is no ceiling on salary for PF deduction. It is not mandatory by law to deduct the PF contribution on salaries/wages above Rs. 6500. The employee may deduct their own contribution voluntarily, but if the employer desires, they can restrict their share up to the salary/wages limit of Rs. 6500.

Regards,
Ajay Shukla
Labour Laws Consultant, Kanpur
Email: ajaywshukla@rediffmail.com
Phone: 09839066035

Hi,

You can deduct more than 12% from an employee if the employee wishes to do so; however, the employer will not contribute anything.

RK

Dear All,

There is no ceiling for salary for PF deduction. It is not mandatory by law to deduct the PF contribution on salaries/wages above Rs. 6500. The employee may deduct their contribution voluntarily, but if the employer wishes, they can restrict their share up to the salary/wage limit of Rs. 6500.

Regards,
Ajay Shukla
Labour Laws Consultant, Kanpur
Email: ajaywshukla@rediffmail.com
Phone: 09839066035

In addition, the employee's PF contribution can be a maximum of up to 20% of their basic salary (by providing a written declaration to their current employer), but the employer's contribution is mandatory up to 12% of the employee's basic salary.

Thanks & Regards,
AK Sharma

As per the Employees' Provident Fund Scheme, the coverage is for employees whose salary (basic + DA) or consolidated pay is up to Rs. 6,500/- per month. An employee can request voluntary contributions for which no contributory benefit from the employer is permitted. However, the organization can include/cover employees earning more than Rs. 6,500/- if they have a policy in place with an equal percentage of contribution.