hi all, Is paying PF compulsory or is there a law which states that employees getting basic above 6.5k need not be given? Waiting......... Thanks
From India, Bangalore
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From India, Bangalore
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Dear Kumar, Any organisation havin 20 - 25 employees will have compulsory PF account. All the permamanent, company employees will be given an individual PF number. Isaac Patturaja
From India, Madras
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2From India, Madras
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The PF Act defines an employee as one whose Basic plus DA is 6500 or less per month. Hence, those who earn wages more than 6500 need not be covered legally. If an employee is covered once, they will continue to be covered, and you can restrict your contribution to 6500. This is the legal position.
Siva
From India, Chennai
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Siva
From India, Chennai
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PF is must for un exempted establishments under the act Upto 6500 contribution is mandatory above 6500 is voluntary
From India, Bangalore
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From India, Bangalore
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EPF is compulsory for those establishments employing not less than 20 employees. All employees whose salary (Basic + DA) at the time of joining is not more than Rs 6500 are covered. That means an employee once covered will continue to be covered irrespective of any hike in his salary.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Kumar,
Provident Fund is compulsory for all organizations employing more than 20 employees. All types of employees, irrespective of permanent, casual, etc., but drawing Rs. 6500 and less are covered. Once an employee is covered, they must continue as a member if there is any hike in their salary later on. If an employee drawing more than Rs. 6500 wishes not to be covered under PF, the management has to obtain a letter from the employee for the same.
P. RAMACHANDRAN
From India, Madras
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Provident Fund is compulsory for all organizations employing more than 20 employees. All types of employees, irrespective of permanent, casual, etc., but drawing Rs. 6500 and less are covered. Once an employee is covered, they must continue as a member if there is any hike in their salary later on. If an employee drawing more than Rs. 6500 wishes not to be covered under PF, the management has to obtain a letter from the employee for the same.
P. RAMACHANDRAN
From India, Madras
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Hi, I have a small question on this issue. Does the standard deduction of PF 12% remain the same or it changes due to hike in a salary or any other reason. Plz guide. Thanks Mehul Mehta
From India
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From India
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The standard rate of contribution/deduction remains the same, i.e., 12% irrespective of salary hike. An employee can contribute at a higher rate, i.e., more than 12%, and that is called 'voluntary contribution.' However, the employer need not contribute at a higher rate as the employee contributes voluntarily. The voluntary contribution is not related to salary. Even when the salary is less than $6500, one can opt for a higher contribution.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx