Understanding PF Deductions: Is It Required for Salaries Above ₹15,000?

Dear All, Can anyone tell me about PF deduction? If the basic salary is above ₹15,000, is it necessary to do PF deduction or not? Is it exempted?

PF Deduction Guidelines

Deducting 12% on $15,000 is sufficient if the basic salary is ≥ $15,000.

If you have employees whose basic salary is < $15,000, you should follow the above-said guidelines.

If all or most of your employees have a basic salary > $15,000, there is an option to not opt for PF deduction. You can collect and keep a record of their consent, which can be produced during inspection.

It is strongly recommended to go with the first line.

Hi, "PF deduction if basic is above 15,000 then it is necessary to do PF deduction or not: If the employee is already a contributing member to PF, then PF should be deducted even though Basic is above 15,000/- but PF can be limited to Rs. 15,000/-. However, if the member is not already a contributing member to PF, then there is no need for PF deduction. But collect EPF Form 11 duly signed by the employee."