Hi, For employees earning Rs.6500 + as basic salary, it is voluntary. Otherwise mandatory. thanx, Sweety Singh
From India, Delhi
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4From India, Delhi
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I need clarification regarding PF. If I am earning Rs 7000 as basic pay, does it mean I will be covered under PF? Is it mandatory to deduct PF from my salary, or is it voluntary? If my basic pay is Rs 7000 and I am not under PF, does it mean I am violating any rules? Also, is it advisable for my employer to show this in my salary account?
Thank you.
From India, Pondicherry
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Thank you.
From India, Pondicherry
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Dear Mr Kumar PF is not compulsory, if basic is above Rs. 6.5 k. They are coming under exempted category. The company is liable to extend PF only up to Rs. 6.5 k. Regards A Natarajan
From India, Madras
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From India, Madras
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dear mehul, The standard deduction in pf remain the same 12% is there hike in salary or not. Regards, Ashish
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On-roll employees, contractual employees, employees from outsourcing agencies, or employees based on voucher payment. Please note that we have a very new setup.
Currently, we have a total of 24 employees, out of which 3 are Japanese, 3 are drivers and office boys, and 2 are retainers.
Hope this information helps you provide suggestions.
Regards,
Garima
From Japan
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Currently, we have a total of 24 employees, out of which 3 are Japanese, 3 are drivers and office boys, and 2 are retainers.
Hope this information helps you provide suggestions.
Regards,
Garima
From Japan
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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
As per the PF Act, irrespective of the number of employees in a company, an employee drawing a basic salary exceeding Rs 6,500/- is excluded from the provisions under section 2(f). Companies can voluntarily cover him or leave him the option at the time of joining. Once he becomes a member of PF and later his basic pay exceeds Rs 6,500/-, he will have to continue under PF cover. We follow this policy in our company as pay scales are worked on a CTC basis.
From India, Mumbai
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Is paying PF compulsory or is there a law which states that employees getting basic above 6.5k need not be given? Waiting.........
Thanks
As per the PF Act, irrespective of the number of employees in a company, an employee drawing a basic salary exceeding Rs 6,500/- is excluded from the provisions under section 2(f). Companies can voluntarily cover him or leave him the option at the time of joining. Once he becomes a member of PF and later his basic pay exceeds Rs 6,500/-, he will have to continue under PF cover. We follow this policy in our company as pay scales are worked on a CTC basis.
From India, Mumbai
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Hi Mehul,
12% remains the same. Suppose an employee wishes to contribute more than 12%, they have to inform the HR Department, but the percentage should not exceed 12%. I hope you understand. If you have any confusion, please feel free to reply.
Regards,
Kripa
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12% remains the same. Suppose an employee wishes to contribute more than 12%, they have to inform the HR Department, but the percentage should not exceed 12%. I hope you understand. If you have any confusion, please feel free to reply.
Regards,
Kripa
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12% remains the same. If an employee wishes to contribute more than 12%, they have to inform the HR Department, but that percentage should not exceed 12%. I hope you understand. If there is any confusion, please feel free to reply.
Hi, may I know how it will work? Will the extra 12% be on the basic salary or any other salary structure?
Regards,
Vijay
From India, Hyderabad
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Hi, may I know how it will work? Will the extra 12% be on the basic salary or any other salary structure?
Regards,
Vijay
From India, Hyderabad
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Hi,
If there are a total of 20 employees, with 15 employees having a basic salary higher than 6500/- and choosing not to opt for PF deduction, while 5 employees have a basic salary below 6500, is it necessary and mandatory to take PF numbers for these 5 employees or for the total number of employees, which is either 20 or 5?
Please advise.
Thanks,
Uttama
From India, Mumbai
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If there are a total of 20 employees, with 15 employees having a basic salary higher than 6500/- and choosing not to opt for PF deduction, while 5 employees have a basic salary below 6500, is it necessary and mandatory to take PF numbers for these 5 employees or for the total number of employees, which is either 20 or 5?
Please advise.
Thanks,
Uttama
From India, Mumbai
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Dear Mehul,
The standard rate of Cont. (12%) does not change with the hike in salary, whereas the sum of contribution will hike on the new rates. However, you can block the deductions only up to 6500/-, whatever the basic of an employee may be, but that has to be a part of the uniform policy of the organization.
On the other hand, an individual can pay his contribution at a higher rate than 12% on a special request to the HR department, but the employer contribution will stick to 12% only.
Thanks,
Rahul
From India, Delhi
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The standard rate of Cont. (12%) does not change with the hike in salary, whereas the sum of contribution will hike on the new rates. However, you can block the deductions only up to 6500/-, whatever the basic of an employee may be, but that has to be a part of the uniform policy of the organization.
On the other hand, an individual can pay his contribution at a higher rate than 12% on a special request to the HR department, but the employer contribution will stick to 12% only.
Thanks,
Rahul
From India, Delhi
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx