Can My Company Stop PF Contributions for Employees Earning Over Rs. 15,000?

Currently, PF is being deducted on a basic salary of Rs. 15,000, whereas earlier it was deducted on a basic salary of Rs. 6,500. My question is, for those employees whose PF deduction was Rs. 6,500 based on the previous basic salary, now that the same employees have a basic salary of Rs. 15,000, can you please confirm if my management wishes to stop PF contributions for those whose salary exceeds Rs. 15,000?

Is this possible? Please suggest.

Regards,
Prashant

Those who have already registered with PF have to continue to contribute to PF, even if their salary exceeds the ceiling limit.

Regards,
Abbas.P.S

Now, the ceiling limit of PF has been changed from Rs. 6,500/- to Rs. 15,000/-. Hence, employees whose salaries are less than or equal to Rs. 15,000/- will come under mandatory PF coverage. For those employees whose salary is above Rs. 15,000/-, they will not come under PF coverage, but they can opt for it voluntarily if the company allows.

Thanks,
Terance

The issue is very clear. Every employee and employer must contribute to the PF amount for employee social security. Now, if any employee has crossed over the ceiling of 15,000, that amount is calculated for 15,000 only, whereas before the ceiling was 6,500.

For example, if an employee has a 50,000 basic salary, the employee's contribution is 12% of the basic salary, which amounts to 6,000. Before the amendment, the ceiling was 6,500, but now it is 15,000.00. Any company or organization should follow this.

Thanks and regards,
MANOHAR
HR

PF Contribution Guidelines for Employees Joining After September 2014

It is voluntary to provide PF contributions for employees who have joined after September 2014 and have either never been members of the fund or have withdrawn their fund, hence discontinuing their membership. This applies to employees whose salary exceeds ₹15,000/month.

However, employees who were members employed with you and were covered earlier due to a ceiling of ₹6,500/month will continue to be members. Additionally, new members who have joined after September 2014 due to the increased ceiling of ₹15,000/month will also be part of the fund. Membership cannot be discontinued for existing members.

Regards,
Sagar Raut
[Phone Number Removed For Privacy Reasons]
[Email Removed For Privacy Reasons]

Mr. Abbas P.S. is correct. The management cannot deny coverage to employees who are already members. The PF contribution can be explained by Mr. Manohar.