Deduction In Salary - Pdf Download

Is P.F. Deduction is compulsory ?
Total Annual salary is more than 3.5 lacs.

Dear Sudhakar
PF deduction is compulsory , what may the amount and the PF is calculated on the Basic instead of annual salary it might be.
Regards
B.Anand Kumar

Dear Sudhakarneelu20000,
In this forum, there are several discussions in this subject up-till now. There are different views expressed by many members. Very few views are correct.
Even the above view is not correct and complete.
You can do research and find my views on exempted employees with in the meaning under para 2(f) of EPF Scheme. I do not wish to repeat it again.

When an employee's salary (Basic+DA) is more than Rs.6500/- per month and he is not already a member (in his previous assignments, if any) of the EPF, deduction of PF from employee and equal contribution from company is not mandatory. In such cases it purely depends on management policy.

Dear Pratapkarumanchi,
Can I request you to kindly give relevant provision / notification / circular / any other document to suffice your above response?

Dear Mr. Keshav Korgaonkar,
You can refer the Employee's Provident Fund Scheme, 1952, Sub-section (f) of Section 2, which narrates "Excluded Employee" as
i) an employee who, having been a member of the fund, with drew the full amount of his accumulations in the fund
ii) an employee whose pay at the time he is becoming a member of the fund exceeds 6500 per month and
iii) an apprentice.
In case an employer wants to keep an employee out of PF -he needs to ensure that he is not an existing member in PF and drawing more than 6,500-00 (Basic+DA) at the time joining. Hence, need to collect Form-11 from the employee if the employer wants to exclude on the above ground to ensure non membership in PF.
Need to remind you, once a member in PF will continue to be a member irrespective of quantum of salary.
Regards
Pratap

Dear Pratap,
I would like to add to your last sentence that "where the monthly pay of such member exceeds Rs 6500/-, the contribution payable by him and that of his employer shall be limited to amounts payable on monthly pay of Rs 6500/-including DA,retaining allowance(if any) and cash value of food concession".
BS Kalsi
Member since Aug 2011

Dear Pratap ji,
Thank you very much for responding me. I read once again all the posts in this thread including your both posts very carefully and would request you to kindly reconsider your following quote:

Dear Mr. Keshav
I have quoted this keeping in view the options available to an employer in case of an employee (not an existing member in PF in his past assignments) drawing salary (Basic+DA) exceeding Rs.6,500-00. The options available to the employer are:
a) Straight away can exclude the employee from PF or
b) Can contribute (limit) on only Rs.6500-00 irrespective of the higher salary (Basic+DA) or
c) Also can contribute on total basic+da (which may be any amount more than Rs.6500-00)
Hence, I said it depends on management policy.
Regards
PRATAP

Dear Pratap ji,
Thank you very much for your response. With due respect to you Sir, your seniority and knowledge, I beg to differ with you.
According to my knowledge, it is the option with an employee drawing salary more than Rs. 6500/- whether to join PF or not. This option is not with management. If management has such policy, it is not legal, in my veiws.