Can I Start PF Deductions Now and Backdate Them to My Joining Date? Seeking Advice

Dear Seniors, I have been working in my current company for 3 years. When I joined, my PF was not being deducted from my salary because my basic pay exceeded ₹6,500/-. Now, I would like to have PF deductions initiated. Is this possible, and if so, will it be effective from the date of my joining?

Regards,
Anshu

According to the PF law, even for a basic salary exceeding ₹6,500, PF contributions should be deducted. However, many employers are not adhering to this requirement to avoid the employer contribution. Please inquire with your HR department about this matter.

Regards,
[Name Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]

As rightly said by Lakshmi Narayana, PF even above Rs. 6500 basic is essential to be deducted. Please ask your HR to implement the same immediately.

Regards,
Annie

Dear Annie,

I am in HR only. At the time of joining, I filled Form 1.1. There were many PF audits by PF officers, and no such issue was raised. To my knowledge, there are some companies following such practice.

Regards,
Anshu

Thank you for your response, but my query remains unresolved. Since the day I joined, my PF has not been deducted due to my basic salary being more than 6500/-. I now wish to have my PF deductions initiated. Is this possible?

Regards,
Anshu

Yes, PF can be deducted if you want, even if your basic salary is more than INR 6500. However, in some cases, if the basic salary is more than INR 6500, employers or HR calculate the PF assuming the base salary to be INR 6500 only. In your case, if the PF is being deducted, it would be effective from the date of the first deduction only. You should consult your HR for any further clarification.

Regards,
Prabhat
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]

Dear Anshu,

As you have explained that you want PF to be deducted from your salary even though you have been working for 3 years. If PF is being deducted from your salary, it will come into effect from the date, i.e., the particular month from which the deduction will start.

Regards,
Prabhat

Dear Anshu,

Please understand that the deduction of Provident Fund above the basic of ₹6,500/- is an optional choice for an employee. If you want to opt out of the PF, the company must take a declaration form from you stating that you are opting out of PF and will not be contributing.

First, check if you have filled out such a declaration form.

Options for Provident Fund Membership

You can also choose to become a member of PF. However, if you have already given a declaration, your membership will start only from the day you opt for deduction. In this case, you will need to provide some forms again, which your HR can guide you on.

Another option is to open a Public Provident Fund account in SBI and regularly deposit the amount of PF. This will earn good returns, and you will also have tax-free income at the end of the 15-year period.

New Employee Pension Scheme

Please note that the New Employee Pension Scheme requires a minimum of ten years of continuous membership with contributions to become eligible for a pension and other benefits.

I suggest reading the EPFO website to gain more information on the same.

All the best.

Regards,
Archana Bhatt

Dear Mr. Anshu,

Since your basic salary at the time of joining was Rs. 6500/-, you were classified as an Excluded Employee under the EPF Act, and contributions may not have been deducted.

If you now wish to have PF deductions made, this can be arranged by both you and your employer submitting Willingness Letters to the EPFO, requesting the deduction of PF contributions. These contributions can then be paid along with those of other PF members in your company.

Regards,
Padala Venkata Subba Rao
Welfare Officer
Sri Sarvaraya Sugars Limited
Coca-Cola Bottling Unit
Kesavara, East Godavari (AP)

My company doesn't deduct PF for the employees as the strength is under 20. Also, all of their Basic is above ₹6,500/-. Is it compliant if we do not deduct PF for any employee even after we increase the employee strength above 20 and basic > ₹6,500/-? Your views would be highly appreciated.

Regards,
Simi