Can PF allow us to do deduction of PF as per PF deduction limit i.e. Rs. 15000/- for only one employee?

tushar-sharda
Dear All, I have need one suggestion from you. In our company one employee requested us to deduct PF as per PF deduction limit i.e. 15000/- instead of his Basic salary i.e. Rs. 45000/- (currently we deducted his PF on Rs. 45000/- i.e. Rs.45000*12% = Rs. 5400/-) Please reply. Can PF allow us to do deduction of PF as per PF deduction limit i.e. Rs. 15000/- for only one employee.
Rahul Chhabra
Dear Anony,
PF deduction can be either on the ceiling limit i.e 15000 pm or 12% of basic in case the basic is higher than the ceiling limit. Yes, you can go ahead and do the contribution at the rate of 12% of his basic salary.
Those companies who restrict the PF contribution to ceiling limit do so as to save on the admin charges on PF.
Regards
Rahul
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