Is There a Rule Against Withdrawing PF for Those Earning a Basic Rs. 6500? Let's Discuss!

Dear All,

I want to know if there is any prohibition for PF withdrawal or not. If a person has a basic amount of Rs. 6500/-, please inform me if there is any such provision and specify the relevant section and Act.

Thanks & Regards,

Neeru

Hi,

The employer is bound to have registration under the Employees' Provident Fund and Miscellaneous Provisions Act when the employee strength is above 20, irrespective of basic pay constraints, etc. The employee is bound to deduct and contribute towards the EPF scheme when the basic pay of an employee is Rs. 6,500 a month or less.

To register, you need to fill two forms, namely a proforma for the registration with the PF department and another form for the registration of BN (Business No.).

With best regards,

Umesh
welcomeumesh@yahoo.com

Hi Neeru,

There are some basic rules regarding PF deduction.

1. If Basic+DA is less than or equal to 6500, then the employee contributes 12% of Basic+DA, and the employer also contributes 12% of Basic+DA. In addition, the employer has to pay 1.61% as administrative charges towards PF.

2. If an employee had a Basic salary less than 6500 and their salary has been revised to be greater than 6500, they would continue to be a member of PF (if they were your employee during this period).

3. However, a new joiner, i.e., a fresher who has not been a member of PF earlier and is drawing a Basic salary greater than 6500, would be an exempted employee.

4. For an employee who was a member of PF in their earlier organization and has joined yours with a salary greater than 6500, there are two possibilities:
a. They can be exempted by submitting a signed Form-11.
b. Otherwise, they should continue to be a member. It is a better decision considering justice and equity.

Hope your doubts have been cleared.

For further queries, feel free to contact vikas.dubey@6ten.co.in.

Regards,
Vikas

Dear All,

I want to know if there is any provision for PF deduction or not.

If the person has a Basic amount of Rs. 6500, kindly let me know if there is any such provision, and if yes, please specify the section and Act related to this provision.

Thanks & Regards,
Neeru

Thank you for your response, Vikas. I would like to inquire if there is any law or specific section related to this matter.

Regards,
Neeru

Right now, I cannot tell you the exact section number. You can go through the act. It is a small one and wouldn't take more than 2-3 hours. Check epfindia.nic.in.

Goodbye,
Vikas

Hi Umesh,

Actually, I want to know the section for this provision. That the employee has the option to take PF or not under which law.

Regards,
Neeru