PF contribution Mandatory - even if his salary is raised and he is out of PF bracket?

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

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.

Thank you for the advice. It resolved my query.

Once you are in PF, always in PF!

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