Changing PF Deductions for New Joiners: Is Capping at Rs. 15,000 the Right Move?

Dear members,

As of now, we are deducting PF on basic whether it is Rs. 15,000 or Rs. 50,000. We want to bring a change in the structure for new joiners so that whenever the basic salary is greater than Rs. 15,000, we will deduct 12% based on Rs. 15,000 only. This practice is observed in the salary slips of many other organizations.

Please suggest any feedback or thoughts on this proposed change. Thank you.

Hi,

Yes, PF for amounts above 15,000/- is optional and not compulsory.