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Hi friends,

Can anyone shed some light on the Rs. 6500/- PF deduction limit? Few companies only cut PF up to Rs. 6500/-, while others deduct even more beyond that. What is the exact rule? This is urgent.

Rajeev Dixit

From India, Bangalore
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Dear,

As per the law, whose basic and DA is up to 6500, PF has to be deducted. However, after that, it is the choice of the employer to deduct or not to deduct. If someone becomes a member of PF once, they will remain a member of PF.

Thank you,
J. S. Malik

From India, Delhi
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Dear Mr. Mallik,

Please don't mind, I have one more doubt here. As you said, after ₹6500, it's the choice of the employer. In that case, up to what amount can he cut? Suppose my basic + DA is ₹20,000 per month, can the employer cut the PF amount of 12% from it?

Regards,
Rajeev Dixit


From India, Bangalore
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Yes, they can do that. If the company want to continue PF beyond basic limit of Rs.6500/-, they can continue deducting. with regards, Mahesh
From India, Madras
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No It Is All Depends On Employee Consent. If You Are Not Ready To Cut Pf On Basic &da (20000) Then There Is No Law To Cut It From Your Salary. Sonu
From India, Delhi
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Hi,

Up to Rs 6,500, it is a must for the employer to deduct, and the employee has to contribute. But above Rs 6,500, it is upon the employer whether they want to deduct or not. However, if the basic salary + DA of the employee is above Rs 6,500 and the employer is willing to deduct, the employee can refuse to opt for PF. But once the PF is deducted, the employee cannot refuse.

Thank you,
Kumar

From India, New Delhi
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Hi all,

In my company, for an employee whose basic is Rs. 10,000/- (Gross is 20k), they deduct Rs. 1,200/- as the employee contribution. The employer contribution is Rs. 541 for employee pension and PF is Rs. 659. This is the practice followed in our company.

Regards,
Sai

From India, Pune
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Sai, Employer contribution inturn is divided into two sections. One is Provident Fund(3.67%) & Employee Pension Scheme(8.33%).
From India, New Delhi
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