Hello everyone, Recently, I heard that if an employee joins any organization with a salary of more than 15k, then they are exempt from PF contribution. Can you please confirm if this is a myth or true? Thanks
From India, Mumbai
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From India, Mumbai
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Hi, If the employee’s PF salary is more than 15k then employee can be exempted from PF provided the same employee is not a contributing member of PF during past employment.
From India, Madras
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1015From India, Madras
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Hello, I am a fresher just about to step into HR. As far as I have read about statutory compliances related to PF, it is true that employees whose salary is above 15,000 are not eligible. However, they cannot be completely exempted from contribution; they can contribute a straight 1,800. Additionally, there is also VPF (Voluntary Provident Fund) that allows employees to contribute more than the ceiling limit if they want.
Hope this helps.
From India, New Delhi
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Hope this helps.
From India, New Delhi
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Employee Benefits.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf