Hi,
Can someone please advise if we need to provide PF if the basic salary is above 6500/-? Our employee strength is 25. According to our consultant, once a person is covered under PF by any of his ex-employers, he has to be covered by his present company as well.
Please confirm. It's very urgent.
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4Can someone please advise if we need to provide PF if the basic salary is above 6500/-? Our employee strength is 25. According to our consultant, once a person is covered under PF by any of his ex-employers, he has to be covered by his present company as well.
Please confirm. It's very urgent.
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Hi Vidya,
Thank you very much for your prompt reply.
So, as per what I understand from your email, we need to be covered under PF regardless of our basic being above 6500/-. As our company is an MNC, I need to provide the required documents to support it. Can you please send me the PF act which testifies the above statement? I would be very grateful.
Thanks and regards,
Smita
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Thank you very much for your prompt reply.
So, as per what I understand from your email, we need to be covered under PF regardless of our basic being above 6500/-. As our company is an MNC, I need to provide the required documents to support it. Can you please send me the PF act which testifies the above statement? I would be very grateful.
Thanks and regards,
Smita
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Dear Smitha, Please find attached doc. I hope it would help u. regards Vipin
From India, New Delhi
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From India, New Delhi
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Dear [Name],
Legally, your consultant is correct. However, we refer to Form 11 provided by the employee, which states that the individual was not a member earlier. If the basic salary exceeds 6500, the employee is considered exempt from PF deductions. In such cases, it is necessary to obtain Form 11 from the employee.
Regards,
JS Malik
From India, Delhi
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Legally, your consultant is correct. However, we refer to Form 11 provided by the employee, which states that the individual was not a member earlier. If the basic salary exceeds 6500, the employee is considered exempt from PF deductions. In such cases, it is necessary to obtain Form 11 from the employee.
Regards,
JS Malik
From India, Delhi
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Dear Smitha,
Mr. Malik is absolutely right. You can take a declaration from those employees, stating that they were not a PF member earlier. This is the practical approach. However, if your management insists on complying with statutory regulations, then once again, Mr. Malik is correct - you will have to enroll them.
Wishes,
From,
Vijay Vashisth
09992334610
From India, Jaipur
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Mr. Malik is absolutely right. You can take a declaration from those employees, stating that they were not a PF member earlier. This is the practical approach. However, if your management insists on complying with statutory regulations, then once again, Mr. Malik is correct - you will have to enroll them.
Wishes,
From,
Vijay Vashisth
09992334610
From India, Jaipur
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Hi,
Can someone please advise if we need to provide PF if the basic salary is above 6500/-? Our employee strength is 25. According to our consultant, once a person is covered under PF by any of his ex-employers, he has to be covered by his present company as well. Please confirm. It's very urgent.
You can deduct PF if the wage is above 6500, but for that, you have to take consent from the employee in the format below:
To, The R.P.F. Commissioner
Dear Sir,
Sub: Granting special permission for deduction of P.F.
You are hereby requested to please grant me special permission for deduction of the Provident Fund from my PF wages above Rs. 6500/- per month w.e.f. _______ and my P.F. A/c. No.
After receiving the above consent, you have to forward the same with a proforma for submitting permission under para 26 (enclosed). However, from the employer's 12% share, you have to deposit FPF maximum 8.33% of 6500, i.e., Rs. 541/-, and the balance amount you have to add in 3.67%.
For example: PF wages are Rs. 7000/-
Employee's contribution is Rs. 840/-
Employer's contribution is Rs. 840/- (EPF 3.67% Rs. 299/- and FPF Rs. 541/-)
IM Gandhi
From India, Mumbai
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Can someone please advise if we need to provide PF if the basic salary is above 6500/-? Our employee strength is 25. According to our consultant, once a person is covered under PF by any of his ex-employers, he has to be covered by his present company as well. Please confirm. It's very urgent.
You can deduct PF if the wage is above 6500, but for that, you have to take consent from the employee in the format below:
To, The R.P.F. Commissioner
Dear Sir,
Sub: Granting special permission for deduction of P.F.
You are hereby requested to please grant me special permission for deduction of the Provident Fund from my PF wages above Rs. 6500/- per month w.e.f. _______ and my P.F. A/c. No.
After receiving the above consent, you have to forward the same with a proforma for submitting permission under para 26 (enclosed). However, from the employer's 12% share, you have to deposit FPF maximum 8.33% of 6500, i.e., Rs. 541/-, and the balance amount you have to add in 3.67%.
For example: PF wages are Rs. 7000/-
Employee's contribution is Rs. 840/-
Employer's contribution is Rs. 840/- (EPF 3.67% Rs. 299/- and FPF Rs. 541/-)
IM Gandhi
From India, Mumbai
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Please note that a person whose basic salary is less than Rs. 6500 is covered under the PF included clause. If the basic salary is more than Rs. 6500, the person is covered under the PF exempted clause. In this case, there is a choice to opt for PF, but it is not mandatory. If you choose not to opt for PF, you must fill out the excluded form.
From United Kingdom
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From United Kingdom
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Dear all,
Even employees covered under PF in a previous employer (basic wage < 6500) do not need to have PF deducted from their salary if the basic wage is > 6500 in the current company. If the current employer has any PF policy, we can pay based on 6500 if the basic wage is > 6500; otherwise, there is no need to deduct.
Suppose an employee continues in one company, and after some years, they earn more than 6500 basic wage. In that case, we must contribute the PF amount, at least based on 6500, i.e., Rs 780. If the employer wishes to provide based on the actual basic wage, we can contribute accordingly.
From India, Visakhapatnam
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Even employees covered under PF in a previous employer (basic wage < 6500) do not need to have PF deducted from their salary if the basic wage is > 6500 in the current company. If the current employer has any PF policy, we can pay based on 6500 if the basic wage is > 6500; otherwise, there is no need to deduct.
Suppose an employee continues in one company, and after some years, they earn more than 6500 basic wage. In that case, we must contribute the PF amount, at least based on 6500, i.e., Rs 780. If the employer wishes to provide based on the actual basic wage, we can contribute accordingly.
From India, Visakhapatnam
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