Understanding PF Deductions: Can Employees with a Basic Salary Over Rs. 6,500 Have PF Deducted?

I am Dinesh. I want to know if employees with a basic salary of more than Rs. 6,500/- can have PF deducted or not. What is the statutory binding?

Yeah, Mr. Dinesh, PF can be deducted @ basic + VDA + food allowance * 12%.

But pension fund, under 8.33% of employer share, is deducted on only ₹6500 maximum, and the rest amount is included in 3.67%.

For example, if the salary is ₹10,000, then employee's share deducted @ 12% = ₹1200.

Employer's share in account no. 10 will be deducted @ ₹6500 * 8.33% = ₹541, and the balance amount, ₹1200 - ₹541 = ₹659, will be deposited in account no. 1.

Have a good day.

If the employee is receiving a basic salary of more than Rs. 6,500, the deduction under PF is voluntary. This means that if the employee does not want to contribute, they are free to do so. The same practice is followed in large corporations.

Regards,

EPF Membership and Salary Threshold

If he has already been a member of EPF, he is expected to continue the EPF even if his salary is more than Rs 6500. Certainly, for new employees whose salary (Basic + DA) at the time of joining itself is more than Rs 6500, it is optional.

Regards,
Madhu.T.K

Dear friends and dear moderators, do you know that EPF can be deposited up to 20% from the employee's side?