Hi, can anyone help me? I have joined a new company, but there are no deductions in my salary towards PF contribution. When I asked about that, the company explained that there is no need for PF for people who earn more than 10,000 per month. Is this true? Is there any way I can be eligible for PF? Thanks in advance.
From India, Dindigul
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From India, Dindigul
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Hi.. can anyone help me? I have joined a new company, and there are no deductions in my salary towards PF contribution. When asked about that, the company explains that there is no need for PF for people who earn more than Rs. 10,000 per month. Is this true? Is there any way I am eligible for PF? Thanks in advance.
I may enlighten you that employees drawing a salary of Rs. 6,500 or more are excluded employees. The employer is under no obligation to make them members of the contributory provident fund. However, it is open to the employer to make employees drawing a salary over Rs. 6,500 per month and restrict the employer's contribution to Rs. 6,500, and matching contributions can be made by the employee also.
From India, Chandigarh
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4I may enlighten you that employees drawing a salary of Rs. 6,500 or more are excluded employees. The employer is under no obligation to make them members of the contributory provident fund. However, it is open to the employer to make employees drawing a salary over Rs. 6,500 per month and restrict the employer's contribution to Rs. 6,500, and matching contributions can be made by the employee also.
From India, Chandigarh
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Hi,
I would like to shed some more light on the issues.
The ceiling for PF contribution is the basic salary of Rs. 6500 per month, not the gross one. If your basic salary exceeds the ceiling of Rs. 6500, then it is optional for you whether you want to be a member or not.
I hope it is clear to you now.
Regards,
Amit Seth
From India, Ahmadabad
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I would like to shed some more light on the issues.
The ceiling for PF contribution is the basic salary of Rs. 6500 per month, not the gross one. If your basic salary exceeds the ceiling of Rs. 6500, then it is optional for you whether you want to be a member or not.
I hope it is clear to you now.
Regards,
Amit Seth
From India, Ahmadabad
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The salary eligible for contribution of provident fund is basic salary plus the Dearness Allowance if admissible. If the total sum of the two is over rs. 6500
From India, Chandigarh
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From India, Chandigarh
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My understanding is that if all employees the firm earn more than 7500/8000 then there can be an option to opt out of PF.
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Hi all,
I would like to shed some light on the discussion about PF. PF is applicable to a person earning their basic salary below 6500; otherwise, it depends on the employer and employee discussion when deciding the CTC structure at the time of the interview/appointment.
The issue here is that your salary is 10000, which is above the applicability threshold. Therefore, PF is not applicable to you. If you wish, you can request your employer to rearrange the CTC structure to include PF contributions.
Regards,
Yogesh
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I would like to shed some light on the discussion about PF. PF is applicable to a person earning their basic salary below 6500; otherwise, it depends on the employer and employee discussion when deciding the CTC structure at the time of the interview/appointment.
The issue here is that your salary is 10000, which is above the applicability threshold. Therefore, PF is not applicable to you. If you wish, you can request your employer to rearrange the CTC structure to include PF contributions.
Regards,
Yogesh
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Hi, There is no prohibition under the act to contribute for PF upto the wage celing of Rs.6500/- inrrespective of the salary exceeds 6500 or more. gk
From India, Madras
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From India, Madras
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The statutory limit is Rs. 6500/- per month. The employees drawing a salary of Rs. 6500/- are to be made members of the CPF as an obligation on the part of the employer. Beyond this salary, up to any limit, as per the provisions of the act, it is a voluntary action. The contributions to CPF are made with a view to inculcate the habit of saving for old age and providing for other specified exigencies. It is a much sought-after way of saving and tax planning, as contributions to CPF are entitled to a rebate under Section 80C of the Income Tax Act, 1961. It is for this reason that more and more companies, in the welfare of their employees, are even voluntarily making them members of the CPF.
Deepak Thukral
From India, Chandigarh
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Deepak Thukral
From India, Chandigarh
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Hi,
Dear Friend, any employee drawing a basic salary of more than Rs. 6500 per month can be excluded from the PF benefits provided by the company. It all depends on the employer's wish. If the employer wants to provide this facility to employees as a motivational factor in the bracket of employee care and compensation, then it is very much possible. Only the employer can make the decision - yes or no.
Thanks,
OMPARKASH
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Dear Friend, any employee drawing a basic salary of more than Rs. 6500 per month can be excluded from the PF benefits provided by the company. It all depends on the employer's wish. If the employer wants to provide this facility to employees as a motivational factor in the bracket of employee care and compensation, then it is very much possible. Only the employer can make the decision - yes or no.
Thanks,
OMPARKASH
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As far as my knowledge is concerned, if your salary exceeds Rs. 6500/-, the P.F. is deducted only on the basis of BASIC + D.A. (DEARNESS ALLOW.), i.e. P.F. able salary. It is not mandatory, but obligatory as the P.F. Act is made for the Social Security of the employee to deduct and contribute employers' share @ 12% on Rs. 6500/- and remit it to P.F. Authority by challan.
Regards,
Vipul
From India, Thana
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Regards,
Vipul
From India, Thana
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx