Is PF Deduction Mandatory for a Rs. 20,000 Salary Without an Offer Letter? Seeking Advice

Hi all, please let me know if PF deduction is compulsory if I am offered a salary of Rs. 20,000 per month. I didn't receive any offer letter and was asked to set up HR activities in my office. Please help. None of the current employees have any deductions; all are paid their monthly salary in cash.

Hello,

If your establishment is not exempted, then PF deduction is compulsory. No matter what your salary is, PF will be deducted and remitted to the PF Office by your establishment.

EPF Coverage and Contribution Guidelines

First, check whether your organization is covered under EPF. PF is calculated only on the Basic + DA and retaining allowances. If your Basic + DA is ₹15,000 or less, then yes, you are covered under EPF. If your Basic + DA is above ₹15,000, and you are already a member of EPF, you are still covered under EPF. If you are not a member of EPF earlier, then you are exempted. However, if you are willing to contribute, you may be covered as an optional case. In this case, both 12% of the employee (EE) and 12% of the employer (ER) should be contributed only to EPF, and no EPF.

Regards,
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