Is It Necessary to Deduct PF for Employees Earning Below 6500, or Can Form 11 Provide an Exemption?

If the salary of an employee is below 6500, is it necessary to deduct PF, or can he/she be exempted by filling out Form 11?

No Scope for Exemption

No scope for exemption if the salary is below Rs. 6500/- per month.

Regards,
Varghese Mathew

Can you tell me if we have to take care of minimum wages as well? Is it unlawful for a small company if the salary is below the minimum wage?

You have to take care of minimum wages, and if the salary is below the minimum wage, it is unlawful. You cannot pay less than the minimum wage, no matter whether your firm is small or big. The rules are applicable to all industries; there are no exceptions. Hope you get your answer.

As an HR professional, you must understand that every industry/firm has to comply with the provisions of all relevant applicable laws. This includes the Shops & Establishment Act, Factories Act, Minimum Wages Act, relevant safety enactments, and welfare legislations like the EPF & MP Act, etc. Violation of the provisions of any such laws shall attract penalties as prescribed under the relevant laws. Therefore, study all relevant laws and ensure compliance with all provisions so that you will be at ease, and in turn, the management will benefit.

Persons drawing wages up to Rs. 6,500 are mandatorily covered under the EPF & MP Act. Even individuals who join for wages exceeding Rs. 6,500 per month must be covered under the Act if, at any point in their service, they had been a member under the Act but had not withdrawn the benefits as per Section 69 of the EPF Scheme 1952.

Thank you.
Regards