Hi..can anyone help me ..I have joined a new company, there is no deductions in my salary towards PF contribution..when asked about that, the company explains that there is no need for PF for the people who get more than 10000 salary per month. Is this true? Is there any way I am eligible for PF? Thanks in advance.
From India, Dindigul
From India, Dindigul
I may enlighten you that employees drawing salary of 6500 or more are excluded employees. The employer is under no obligation to make them members of the contributory providednt fund. However, it is open to the employer to make employees drawing salary over 6500 per month and restrict the employers contribution on Rs.6500 and matching contribution can be made by the employee alos
From India, Chandigarh
3From India, Chandigarh
Hi..
I would like to put some more light on the Issues..
The ceiling for PF Contribution is Basic salary Rs. 6500/- per month, not the Gross one..
If your Basic exceeds the ceiling of rs. 6500/-, then its an option for you whether you can be a member or not..???
Hope now it will be cleared with you..
Regards,
Amit Seth.
From India, Ahmadabad
I would like to put some more light on the Issues..
The ceiling for PF Contribution is Basic salary Rs. 6500/- per month, not the Gross one..
If your Basic exceeds the ceiling of rs. 6500/-, then its an option for you whether you can be a member or not..???
Hope now it will be cleared with you..
Regards,
Amit Seth.
From India, Ahmadabad
The salary eligible for contribution of provident fund is basic salary plus the Dearness Allowance if admissible. If the total sum of the two is over rs. 6500
From India, Chandigarh
From India, Chandigarh
My understanding is that if all employees the firm earn more than 7500/8000 then there can be an option to opt out of PF.
Hi to all,
I would like to add some light on the discussion about PF.
PF is applicable to a person earning his/her basic salary below 6500 otherwise it depends on the employer and employee discussion while deciding CTC structure at the time of Interview/ Appointment.
The problem is, your salary is 10000 which is above the applicability. So now the PF is not applicable to you. If you want you can request to your employer for rearranging CTC structure which will include PF contribution.
Regards,
Yogesh
I would like to add some light on the discussion about PF.
PF is applicable to a person earning his/her basic salary below 6500 otherwise it depends on the employer and employee discussion while deciding CTC structure at the time of Interview/ Appointment.
The problem is, your salary is 10000 which is above the applicability. So now the PF is not applicable to you. If you want you can request to your employer for rearranging CTC structure which will include PF contribution.
Regards,
Yogesh
Hi, There is no prohibition under the act to contribute for PF upto the wage celing of Rs.6500/- inrrespective of the salary exceeds 6500 or more. gk
From India, Madras
From India, Madras
The statutory limit is Rs.6500/-p.m. The employees drawing a salary of Rs. 6500/- are to be made the members of the CPF as an obligation on the part of the employer. Beyond this salary upto any limit, as per the provisions of the act, it is voluntarily action. The contributions to CPF are made with a view to inculcate the habit of saving for the old age and providing for other specified exigencies. It is a much sought after way of saving and tax planning, as contributions to CPF are entitled for rebate under Section 80 c of the Income Tax Act, 1961. It is for this reason that more and more companies in the welfare of their employees are even voluntarily making them members of the CPF.
Deepak Thukral
From India, Chandigarh
Deepak Thukral
From India, Chandigarh
Hi,
Dear Friend any employee drawing basic salary more than Rs. 6500 per month can be excluded from the Pf Benefits from the company. It all depend on the employer wish , if employer want to provide this facility to employee as motivation factor in the bracket of employees care and compensation than it is very much possible i.e only employer can make it yes or no .
Thanks.
OMPARKASH
Dear Friend any employee drawing basic salary more than Rs. 6500 per month can be excluded from the Pf Benefits from the company. It all depend on the employer wish , if employer want to provide this facility to employee as motivation factor in the bracket of employees care and compensation than it is very much possible i.e only employer can make it yes or no .
Thanks.
OMPARKASH
As far as my knowledge is concern whether your Salary exceeds Rs.6500/- the P.F. is deducted only on the basis of BASIC + D.A.(DEARNESS ALLOW.), i.e. P.F. able salary, it is not mandtatory ,but obligatory as the P.F Act is made for Social Security of the employee to deduct , contribute employers share @ 12% on Rs.6500/- and remitt to P.F. Authority by challan.
regards,
Vipul
From India, Thana
regards,
Vipul
From India, Thana
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PF for foreign employees 1.10.08.pdf