Is PF Deduction Mandatory for New Employees with a Basic Salary Above 6500?

Dear Friends,

Kindly help me in clearing my doubt about PF. In the case where an employee (new joiner) has a basic salary above 6500/-, is it mandatory to deduct his/her PF on the basic salary? Or can one be exempt from choosing PF deduction from their salary? If yes, under which section of the PF Act?

Reply, please.

Regards,
Sashmita

Dear Member,

According to the EPF Act, the ceiling limit is fixed up to ₹6,500. If the employer and employee are willing to opt under the EPF Scheme irrespective of the salary ceiling, the law does not bar such cases.

Murugavel B.
Chennai

But in order to get that exemption, a declaration is taken from the employee by the employer, and it has to be recorded.

Warm Regards,
Aarti

Thank you, Mr. Murugavel and Aarti,

Could you please inform me if there is a prescribed format for the declaration, or does it have to be included in Form 2 itself?

Regards,
Sashmita
:) :)

Hi Sashmita,

A declaration can be made on a plain piece of paper or as an application. There is no specific format required.

Warm regards,
Aarti

Hi Arthi,

Form 11 is there for exemption from coverage under PF. It has to be filled out by the employee, signed by the employer, and submitted to the PF office. Only then will it be considered legal. You can obtain Form 11 from the PF office free of cost.

Regards,
Ravi Kumar T
09964519065