Is PF Deduction Required for a 22000 Salary? Seeking Clarity from HR Peers

If a person receiving a salary of 22000, is it necessary for PF deduction? My HR is saying that you will not be in that category. Kindly let me know. Thanks.

If the employee has been a member of EPF at any time during his past service, then it is mandatory to remain a member of EPF; otherwise, it is optional.

If the employee is interested in saving, he can contribute both ER and EE, which is a total of 12% for each - ER at 12% and EE at 12%.

Dear Malini,

Since you are already a member of EPF, you cannot be deprived of EPF benefits. However, even if your PF chargeable salary exceeds the ceiling, i.e., 15000/-, your employer still has to consider the same or may restrict the EPF contributions to 15000/- (ceiling limit) depending on your employer's discretion.

Thanks & Regards,

V SHAKYA
HR & Labour Laws Advisor

To enhance your pension eligibility in terms of pension, either submit Form 11 generated from the UAN portal, or simply provide your UAN details in physical Form 11 to your employer along with the date of exit from your previous establishment.

You are exempt from PF if the following conditions are fulfilled:

1. You do not have any active (not withdrawn) PF at the time of joining the new company.
2. Your basic and DA (not entire salary) is higher than ₹15000 when you join the company.

If both of the above conditions are fulfilled, you can opt out of PF. However, you can still decide to continue with a PF account or create a new one. You cannot be deprived of this exemption because you are eligible for it.

Dear Valuable members,

I have two questions. My employee has informed me that he doesn't want to continue with the PF. What should I do? Please suggest. (His salary is below 15000/-). Also, how should I consider the basic salary per employee? For example, if the salary is 35000?

Thank you.

There is no choice provided to an employee. If the employee has a PF account, he continues to be covered.

Salary alone does not empower the employer (or even the employee) to decide about PF membership; the employee's previous employment status is important. Have you obtained a filled-up Form 11 from the employee? That will inform you whether you have to continue treating him as a PF member.