Can company completely stop contributing where basic exceeded 6500?

Dear All

Thanks for sharing knowledge .I have a question on PF that what will happen when the employee exceeds his basic pay more than Rs 6500/- for e.g. Rs 8000. In this case is that mandatory for employee to contribute 12% of Rs 8000(basic) or is there is some option where he can stick up to Rs 6500 only.

Regards
Bhawana

hi karthick,
Was so usefull for the beginners and fellow who wants to learn or to know about the PF knowledge.Superb keep rocking.
Bharath.S.R

HI Venkat,
Under ESI - 1.75 from employee contribution, 4.75 from employer contribution =6.50 calculating from gross salary, PF will calculated from basic.FYI.
Thanks
Bharath.S.R

Dear Vandana
Mr Rathi is not correct on percentage of contribution
If the basic wages exceeds Rs 6500/- the employer is at liberty to keep limit up to Rs 6500/- for PF contribution. This is permissible under the law.
S N Bansode