If a new employee is appointed at a salary of 35,000/-. The breakup of which is as under: Basic: 14,000/- HRA: 7,000/- CCA: 10,000/- Other allowances: 4,000/- Is it compulsory to deduct his PF? Or can he be considered as an exempted employee.
From India, Mumbai
Acknowledge(0)
Amend(0)
24From India, Mumbai
Acknowledge(0)Amend(0)
Dear Anony,
Yes, it is mandatory to deduct PF in the aforesaid case. PF can be exempted only when an employee earns a basic of more than INR 15,000 at the time of joining and was not a member of EPFO ever before. However, I suggest everyone subscribe to PF. It's the only retirement and social security scheme available to us, the working class, and the returns are much higher than bank FDs.
Regards,
Rahul Chhabra
From India, Delhi
Acknowledge(0)Amend(0)
Yes, it is mandatory to deduct PF in the aforesaid case. PF can be exempted only when an employee earns a basic of more than INR 15,000 at the time of joining and was not a member of EPFO ever before. However, I suggest everyone subscribe to PF. It's the only retirement and social security scheme available to us, the working class, and the returns are much higher than bank FDs.
Regards,
Rahul Chhabra
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee Salary file - India 2016 AB.xls
PF Judgement - Bom HC - Temp employee.doc