Understanding PF Contributions: How Do They Apply When Basic Salary Exceeds Rs 6,500?

Could someone please address my query below? If, in any case, the employee's basic salary is more than Rs 6,500/-, does the employee contribution apply to the actual basic salary (which is higher than Rs 6,500/-)? Can the company contribute only up to Rs 6,500/-?

Regards,
Rajesh

Yes, the employer and employee can contribute to PF on ₹6,500/-. Please go through the attachment. I hope it will be helpful to you.

Regards,
Rajni.

Dear Rajni, Thank you for your response. In my case, we want to deduct on actual from the employee, and the employer can only contribute Rs 6,500/-. Is this possible?

Example Scenario:

Employee basic - Rs 8,000/-
Employee contribution - Rs 960/-
Employer contribution - Rs 780/-
Balance (Rs 180/-) - can we pay this in take-home salary?

Secondly, is there any possibility to suddenly bring the contribution into the ceiling amount of Rs 6,500/-? Both the employee and employer have been contributing on the entire actual amount (which is more than Rs 6,500) for the past 10 years.

Please note: If you have any related documents or court verdicts, please share them with me.

Regards,
Rajesh

I want to know why your organization wants to do such things. Instead of deducting from the actual amount, which is ₹8,000 with a PF amount of ₹960, deduct it from the amount ₹6,500 with a PF amount of ₹780, and let the employer contribute the same. The amount ₹180, which is the difference, will anyway get added to the take-home amount. Hope you understand what I mean. Please do reply.

Regards,
Rajni.