Employee Earning Below ₹15,000: Is PF Contribution Still Required?

1 employee salary drawn Rs. 15,000 per month, then PF contribution is not mandatory. If an employee's salary is below Rs. 15,000 in any month, what about PF?

If RAM's salary in the month of June is $15,000 and in the month of July is $12,000, then I need assistance with PF.

Hi Team, please share the PF calculation as per the minimum wage with salary revision arrears.

Example Calculation

1) If the basic salary is more than Rs. 15,000/-, PF would be calculated at 12%.

2) If the basic salary is less than Rs. 15,000/-, the following conditions are applicable:

* There are two locations:
1) Hyderabad's minimum wage is Rs. 9,300/-
2) Chennai's minimum wage is Rs. 13,624/-

If the sum of the basic salary and special allowance is less than the minimum wage, we need to calculate based on the minimum wage amount. For example, if an employee is located in Chennai with a sum of basic salary and special allowance at Rs. 11,000/-, we would consider the PF wage as Rs. 13,624/-. If the sum of the basic salary and special allowance is more than the minimum wage, we would consider the gross amount. For instance, if the basic salary + special allowance is Rs. 14,000/-, the PF wage would be Rs. 14,000/-. If the sum of the basic salary and special allowance exceeds Rs. 15,000/-, we need to consider the PF wage as Rs. 15,000/-.

Regards, Umapathi