Dear Seniors
As per my Manager HR, PF of those is deducted who have their basic salary less than 6500. Is that right? Further if any empolyee wants PF to be deducted having basic above 6500 have to submit few documents and their will not be any deduction from employer part in that case. Is that right? Moreover if after appraisal basic salary goes above 6500 than the will not be covered under PF or what? Kindly reply soon.
From India, Indore
As per my Manager HR, PF of those is deducted who have their basic salary less than 6500. Is that right? Further if any empolyee wants PF to be deducted having basic above 6500 have to submit few documents and their will not be any deduction from employer part in that case. Is that right? Moreover if after appraisal basic salary goes above 6500 than the will not be covered under PF or what? Kindly reply soon.
From India, Indore
hai this Muthu, There is no restriction like that, u can deduct all employees at the rate of 12%
From India, Madras
1From India, Madras
Dear, Even if after apraisal, salary (basic) of certain employee inceases beyong 6500 then also it is compulsory to deduct PF. We cant discontinue in between.............
From India, Hyderabad
From India, Hyderabad
Hi Alfiya
Q1) As per your HR Manager its right. If any employees basic is below 6500/- then PF is mandatory.
Q2) If the basic is above 6500/- then it is optional. It is the understanding between employee & employer.
If basic is above 6500/- and PF is been deducted then the same contribution of 12% has to be contributed from the employer too. It will be loss for employer. More over employer has to pay 1.61% as Admin charges once again it is loss for the employer.
Q3) Once if the employee has PF benefit at the time of basic is below 6500/- due to promotion or increment if basic exeeds 6500/- then PF should be continued. You cannot stop the PF benefit for the hike in pay.
Hope now you are clear.
If any doubts can contact me
Cheerz
From India, Bangalore
Q1) As per your HR Manager its right. If any employees basic is below 6500/- then PF is mandatory.
Q2) If the basic is above 6500/- then it is optional. It is the understanding between employee & employer.
If basic is above 6500/- and PF is been deducted then the same contribution of 12% has to be contributed from the employer too. It will be loss for employer. More over employer has to pay 1.61% as Admin charges once again it is loss for the employer.
Q3) Once if the employee has PF benefit at the time of basic is below 6500/- due to promotion or increment if basic exeeds 6500/- then PF should be continued. You cannot stop the PF benefit for the hike in pay.
Hope now you are clear.
If any doubts can contact me
Cheerz
From India, Bangalore
Your HR Manager told to you is correct , If employees basic is below 6500/- then PF is mandatory itherwise is choice.
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Atul Somani
From India, Pune
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Atul Somani
From India, Pune
Dear Mr.Jeevarathnam,
While new employee joining your have to get Form 11 (Self declaration by employee). If the employee is an existing member in EPFscheme irrespective of his salary his membership to be continued. Upto Rs.6500 is mandatory and above is the optional. If the member is not a member in EPF and his Basic salary is more than Rs.6500 while joining he may be an exempted employee. EPF is optional for both.
Regards,
Anbu Loganathan,
Manager - HR
From India, Madras
While new employee joining your have to get Form 11 (Self declaration by employee). If the employee is an existing member in EPFscheme irrespective of his salary his membership to be continued. Upto Rs.6500 is mandatory and above is the optional. If the member is not a member in EPF and his Basic salary is more than Rs.6500 while joining he may be an exempted employee. EPF is optional for both.
Regards,
Anbu Loganathan,
Manager - HR
From India, Madras
Hi All I have a doubt, that whether the employer’s and employee side PF is deducted from the employee’s salary itself...
From India, Kochi
From India, Kochi
Absolutely not, Only Employees contribution that 12% will be deducted Emploeyrs side contribution will be born by organization. It will not be deducted from Employees salary
From India, Hyderabad
From India, Hyderabad
Above Rs6500/- basic salary it is need not to pay pf. However if an employee possess pf then employer should have to continue the contribution even the basic salary greater than Rs6500/-.
From India, Ernakulam
From India, Ernakulam
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls