Confused About PF Deductions on Third-Party Payroll? Let's Clarify the Slabs Together

Hello All,

Can anyone help me with the following case? My friend has joined on 3rd party payroll, and in his offer letter, the Annual Basic is shown as 420000/- with a PF deduction of just 5% on the basic.

When asked HR, they provided the following slab:
- If the basic is below 30K, then PF deduction would be 12%.
- If the basic is above 30K but below 40K, then PF deduction would be 7-10%.
- For basic above 40K, the PF deduction is 5%.

I kindly request clarification on this matter.

Thanks and Regards

That may be company policy. EPF enforces up to 15,000 rupees only. Above the 15,000 limit, the contributions are subject to employer and employee mutual understanding.

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