Understanding PF Contributions: What Happens When Salary Exceeds the Rs. 6,500 Limit?

Hello,

As per the PF Act, the maximum basic salary entitlement for PF is Rs. 6,500. My question is, if an employee's salary exceeds this limit after receiving an increment, are they still entitled to make Employee PF Contributions? If yes, is the contribution fixed at Rs. 780, or can the company exclude such employees from contributing?

Thank you very much for the valuable answer. I recently visited the EPF India site but could not find any information related to the increased basic limits for PF contribution in Maharashtra State. Kindly send me the circular if it is available with you.

Till date, the ceiling salary limit of EPF is Rs. 6500. There is no such amendment to hike the limit to Rs. 10,000.

The members once enrolled in PF will continue until the end of service. The statutory obligation is a contribution up to the ceiling salary. However, both employees and employers can contribute at higher salaries if they wish.

Abbas.P.S

Hi Murali, May I know from when the amendments regarding the PF limit (Rs. 6,500/- to Rs. 10,000/-) come into effect?

Thank you.

Please, can you tell me if an employee wants to enhance their PF contribution above 12%, what is the procedure for that? Should HR inform the PF office?

Regards,
GOPI