Dear members, we are a consultancy firm with more than 70 members. Is it necessary that all employees should have PF deductions, or only employees whose basic salary is less than Rs. 6500 should have PF deductions? Please help me in clearing this doubt.
From India, Bhopal
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From India, Bhopal
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I'm a labor law consultant and practitioner. It is not compulsory to provide PF benefits to employees whose basic salary is above ₹6,500 per month. However, it is at the discretion of the management whether to grant them the benefit or not. It is mandatory for employees earning below ₹6,500.
From India, Mumbai
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2From India, Mumbai
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The entity has to deduct provident fund contributions for employees who are earning less than Rs. 6,500/- per month as wages/salary. It is correct that the provisions of the Provident Fund Act are not applicable to employees who are receiving more than Rs. 6,500/- per month as wages. If an entity wishes to apply provident fund provisions to employees earning more than Rs. 6,500/- per month as salary/wages, the entity can do so, but a pick-and-choose policy will not be applicable. The provisions of the Act are to be applied uniformly.
From India, Gurgaon
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From India, Gurgaon
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx