Is a New Employee with a Rs. 7,500 Basic Salary Eligible for Provident Fund?

Eligibility for Provident Fund

Is an employee new to the company who has Rs. 7,500/- basic eligible for Provident Fund? What should be done if an employee has a basic salary of more than Rs. 6,500/-?

In the first sentence, "Rs." should be followed by a space, and the amount "7,500" should have a comma for better readability. Additionally, "PF" should be spelled out as "Provident Fund" for clarity.

In the second sentence, again, "Rs." should be followed by a space, and the amount "6,500" should have a comma. The question mark at the end should be followed by a space.

I have corrected the spelling, grammar, and formatting errors in the text. Let me know if you need further assistance!

Can anyone explain how to make a Provident Fund (PF) claim online for transfer? It is compulsory for the employee. If anyone knows anything, please tell me the procedure to do that.

Regards,
Atul

Reply to Xtend Technology:

1. The PF ceiling is Rs. 6,500 per month as of the current date. Employees drawing Basic + DA up to Rs. 6,500 will be covered under PF compulsorily.

2. Employees drawing more than Rs. 6,500 per month have the option for contribution. In this case, there are two scenarios:
- (i) If the employee was already covered under the EPF scheme and later their salary is increased, their membership cannot be stopped.
- (ii) If a new employee is recruited with Basic + DA exceeding Rs. 6,500 per month and they are not made an EPS member, then the decision is up to you. You can have them sign Form-11 to exempt them from the EPS Scheme.

Regards,
Jitender