PF Deductions for Consultancy Firms: Do All Employees Need Them or Just Those Earning Below Rs. 6500?

Dear members, we are a consultancy firm with more than 70 members. Is it necessary that all employees should have PF deductions, or only employees whose basic salary is less than Rs. 6500 should have PF deductions? Please help me in clearing this doubt.

I'm a labor law consultant and practitioner. It is not compulsory to provide PF benefits to employees whose basic salary is above ₹6,500 per month. However, it is at the discretion of the management whether to grant them the benefit or not. It is mandatory for employees earning below ₹6,500.

The entity has to deduct provident fund contributions for employees who are earning less than Rs. 6,500/- per month as wages/salary. It is correct that the provisions of the Provident Fund Act are not applicable to employees who are receiving more than Rs. 6,500/- per month as wages. If an entity wishes to apply provident fund provisions to employees earning more than Rs. 6,500/- per month as salary/wages, the entity can do so, but a pick-and-choose policy will not be applicable. The provisions of the Act are to be applied uniformly.

I would like to clarify here that under the EPF Act, the management is not entitled to provide benefits to everyone. The management has the power to discriminate among employees regarding whom they wish to offer benefits to.

Thanks,
Regards