Confused About PF Contribution Limits? Need Urgent Advice on Rs. 6500 Cap!

I am Santosh Naik, working in OPAL Pune as an HR Executive, and our factory is located in Uttarakhand Roorkee. Recently, we received the PF code from Uttarakhand, and Pune employees are eligible for PF. We have appointed a lawyer for all statutory work. He is saying that the maximum eligible amount for PF contribution is Rs. 6500. If the basic salary is more than Rs. 6500, you can deduct 12% PF on Rs. 6500 only. Is this correct? Please advise. It's urgent.

Yeah, Provident Fund (P.F.) contribution, as per statutory compliance, is necessary for both the employee and employer up to a basic salary of Rs. 6500 per month. If the basic salary exceeds Rs. 6500, the employee can choose to continue contributing to their P.F., but the employer is not obliged to deposit contributions above the Rs. 6500 slab.

There is no ceiling limit for voluntary contributions, but it is subject to the discretion of the RPFC.

Abbas.P.S

This is a general rule that the PF limitation is Rs. 6,500/-. However, there are many ways and rules to contribute under PF up to and above Rs. 6,500/-. I am familiar with the consequences and the subject as I have been handling statutory matters for the last 7 years, and your lawyer is also aware of this.

My suggestion to you is, "It is a good opportunity for you to stabilize your PF contribution from the beginning." Your lawyer is making a valid statement. Please follow his guidance and instructions because once you commit and contribute over Rs. 6,500, you cannot back off.

Now, you can save employer money by acting within the liabilities and by complying with the rules and regulations under the PF act. For any other queries, please contact: [Email Removed For Privacy Reasons].

Regards,
DK Sharma

If an employee is ready to make an extra contribution, will the government pay interest on the extra contribution?