Hi,
In my company, PF contributions are paid to employees whose basic salary is less than Rs. 6500/-, which is the statutory rule. After the latest appraisal, the basic salary of some employees who fall under PF has increased beyond Rs. 6500/-. Can I discontinue their PF, and what is the process for this when submitting the PF returns?
From India, Kochi
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In my company, PF contributions are paid to employees whose basic salary is less than Rs. 6500/-, which is the statutory rule. After the latest appraisal, the basic salary of some employees who fall under PF has increased beyond Rs. 6500/-. Can I discontinue their PF, and what is the process for this when submitting the PF returns?
From India, Kochi
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Hi!
Employees who, while joining the organization, have a basic salary above Rs 6501/- have the option to either become or avoid becoming a member of the Provident Fund. However, employees whose basic salary upon joining the organization is less than Rs 6501/- but increases above Rs 6501/- after some time must compulsorily continue to be a member of the Provident Fund.
Asmita Bhalla
Atmik Consultancy Services
9867289880
From India, Mumbai
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2Employees who, while joining the organization, have a basic salary above Rs 6501/- have the option to either become or avoid becoming a member of the Provident Fund. However, employees whose basic salary upon joining the organization is less than Rs 6501/- but increases above Rs 6501/- after some time must compulsorily continue to be a member of the Provident Fund.
Asmita Bhalla
Atmik Consultancy Services
9867289880
From India, Mumbai
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Dear All,
I fully agree with Asmita Bhalla that employees whose basic salary while joining the organization is less than Rs 6501, but after yearly increments, their basic increases above Rs 6501, have to compulsorily continue to be a member of the Provident Fund. However, do not deduct PF on the full basic; deduct only on Rs. 6500. For example, if the increased basic is Rs. 7500, you can deduct PF only on Rs. 6500.
Akram Inamdar Sr. Manager-HR
From India, Patna
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I fully agree with Asmita Bhalla that employees whose basic salary while joining the organization is less than Rs 6501, but after yearly increments, their basic increases above Rs 6501, have to compulsorily continue to be a member of the Provident Fund. However, do not deduct PF on the full basic; deduct only on Rs. 6500. For example, if the increased basic is Rs. 7500, you can deduct PF only on Rs. 6500.
Akram Inamdar Sr. Manager-HR
From India, Patna
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Hi,
In simple terms, once the PF is started, it cannot be stopped unless the employee resigns from the organization and withdraws his PF.
Chandrakant Vishwakarma
9820592842
(Labour Law & IR Consultant)
From India, New+Delhi
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In simple terms, once the PF is started, it cannot be stopped unless the employee resigns from the organization and withdraws his PF.
Chandrakant Vishwakarma
9820592842
(Labour Law & IR Consultant)
From India, New+Delhi
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In that Case , deduction will on 6500 only and rest of deduction transfer to the EPF account.
From India, Calcutta
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From India, Calcutta
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Employers need to pay PF contributions up to Rs. 6,500. Any amount paid above this limit is not statutory; however, if an employer chooses to contribute more than Rs. 6,500, it is at their discretion. It is mandatory to pay PF contributions on the amount of Rs. 6,500. No employer can completely avoid contributing to their employees' PF if their basic salary exceeds Rs. 6,500.
Regards,
Srujana
From India, Hyderabad
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Regards,
Srujana
From India, Hyderabad
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Dear all, As you all are aware about the minimum wages has been increased So now the basic pay should be the equal to the minimum wages or the Total salary shouled be the equal to minimum wages ?
From India, Delhi
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From India, Delhi
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As per the PF rules, if employees are non-excluded employees of PF during the time of joining, they can't come under the "excluded employees" category even if their basic salary is higher than the prescribed limit. In this case, even if their basic salary is more than 6500, we have to consider 6500 for PF deduction. The company can select either of the options for the deduction of PF (1. 6500, or 2. whatever the basic salary).
From India, Kalyan
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From India, Kalyan
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Hello,
While joining the establishment, if an employee's salary (Basic + Dearness Allowance) exceeds Rs 6500, he or she has the option to join or not join the Employees' Provident Fund scheme. However, employees whose basic salary upon joining the organization is less than Rs 6500 but increases over time to exceed Rs 6500 must compulsorily continue to be a member of the Provident Fund.
Thanks and regards,
Shesh Nath Singh
9443328010
From India, Erode
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While joining the establishment, if an employee's salary (Basic + Dearness Allowance) exceeds Rs 6500, he or she has the option to join or not join the Employees' Provident Fund scheme. However, employees whose basic salary upon joining the organization is less than Rs 6500 but increases over time to exceed Rs 6500 must compulsorily continue to be a member of the Provident Fund.
Thanks and regards,
Shesh Nath Singh
9443328010
From India, Erode
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If employees joined below 6500 as (basic+DA) after he resigned and did not withdraw PF amount, he wants to transfer from the previous to the present organization. The present organization has an option of 6500/(basic+DA) limit, i.e., less than 6500 is covered, and above 6501 is not covered. Can the employee continue the PF contribution in the present company if his basic+DA is above 6501?
From India, Hyderabad
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From India, Hyderabad
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Dear Sir,
PF deductions start once they are applicable and continue indefinitely if the basic salary is more than Rs. 6500 or Rs. 100000. However, the employer is only liable to pay the employer contribution up to Rs. 6500.
Additionally, please note that if an employee rejoins the company after being a PF member during previous service, and now joins with a higher salary (basic salary more than Rs. 6500), they are entitled to the same account number as per statutory requirements.
Thanks and best regards.
From India, New Delhi
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PF deductions start once they are applicable and continue indefinitely if the basic salary is more than Rs. 6500 or Rs. 100000. However, the employer is only liable to pay the employer contribution up to Rs. 6500.
Additionally, please note that if an employee rejoins the company after being a PF member during previous service, and now joins with a higher salary (basic salary more than Rs. 6500), they are entitled to the same account number as per statutory requirements.
Thanks and best regards.
From India, New Delhi
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You have to deduct PF amount at 6500/-. If an employee's basic salary is above 6500 and they are not a PF member previously, then one has to submit the relevant documents to the labor commissioner. The labor commissioner is the authorized person to exempt the employee from PF.
From India, Pune
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From India, Pune
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You have to deduct PF amount at Rs. 6500. If an employee's basic salary is above Rs. 6500 from joining and they are not a PF member previously, then one has to submit the copy to the labor commissioner. The labor commissioner is the authorized person to exempt them from PF.
Nitin Pawar
Head HR & Admin
From India, Pune
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Nitin Pawar
Head HR & Admin
From India, Pune
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Once an employee has been covered under the provisions of the PF Act and subsequently his salary increases beyond Rs. 6500/-, he will continue to be a member. You cannot exclude him from coverage just because his salary has increased beyond the prescribed ceiling of Rs. 6500/-. Vasant Nair
From India, Mumbai
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From India, Mumbai
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
PF-Know Employees Provident Fund-CHART-L-4. doc