What Happens to PF Deductions When an Employee's Salary Exceeds the 15,000 Rs. Threshold?

PF Contribution After Salary Increase

If we are deducting PF from an employee because his basic salary is less than 15,000 Rs., and it is mandatory to have PF contribution, what happens after an appraisal when his CTC increases and his basic salary exceeds 15,000 to 16,500 Rs. (let's say)? Is it still mandatory to deduct his PF contribution from his salary because we were deducting it in the past when it was mandatory for him?

Rule for PF Enrollment and Salary Increase

Is there any rule that if a person is enrolled in PF while joining as per the salary and PF rules, it is mandatory that PF should be a part of his salary even if his salary is raised and he is out of the PF bracket?

Hi there,

PF to be deducted at 12% of Basic / Basic + DA. If the basic is increased and exceeds Rs. 15000, PF is to be deducted on 15000 only (15000*12% = 1800).

Thanks, Akash

Once a person is enrolled in PF, it is mandatory to deduct his PF at 12%, even if he has crossed the limit of Rs. 15,000. However, you can have a ceiling of Rs. 15,000 while calculating PF.

Once you are in PF, always in PF!

Does this rule have any reference to sections, clauses, rules, or notifications?