Can Employers Legally Skip PF Contributions? Seeking Clarity on PF Act Rules

Good afternoon experts,

I am the Asst. HR Manager in Pune. Our employer is considering not paying the PF. Is this valid, or is there any clause in PF for such a declaration? Please suggest.

If your establishment is covered by the EPF and Miscellaneous Provisions Act, and if the salary of the employee is less than Rs 15,000 per month, the answer is a big NO.

Employee's salary for this purpose shall include all allowances except HRA.

In addition to Mr. Madhu's contribution, this is to inform you that you have the option of not paying PF for only those employees whose salary is above 15,000/-. Also, if you are deducting PF based on the actual basic salary, even if it exceeds 15,000/-, then you can restrict the company's contribution to only up to 12% of 15,000/-.