Confused About Provident Fund Deductions? Seeking Clarity on Employee Exclusions and Circulars

Respected All, I recently applied for a Housing Loan, and the financial institution raised a query regarding why Provident Fund (P.F.) was not deducted from my salary by the firm. They provided some documents or circular stating the exclusion of the P.F. facility.

Request for Provident Fund Circular

Can you provide a circular containing information that if the basic salary exceeds Rs. 6,500/-, it is a voluntary decision of the employee to enjoy the P.F. facility or not, or any circular stating P.F. liability?

You can refer to para (f) of the P.F. Scheme 1952, which defines an excluded employee as one whose pay exceeds Rs. 6,500/- per month. You can show a photocopy of the provision.

Regards,
B. Saikumar
Mumbai

Once covered under EPF, the employee shall remain covered even if their basic salary increases beyond ₹6,500. However, the contribution shall be deducted based on ₹6,500 only.

Regards,
Qadir Ahmad
B.L. Agro Oils Ltd.

Thank you for your reply. I changed my job 7 months ago, and in my previous office, I was covered under PF and withdrew the same. Now, in my current company, I have selected the option of non-deduction of PF. Could you please attach a copy of any circular so that I can show it to the bank?

I am awaiting your reply.

Thank you.

Regards