Hello,
Can anyone clarify whether PF needs to be deducted for an employee whose salary got increased from Rs 5000 to 7500? PF was deducted from his salary when his salary was Rs 5000. Now his PF is not deducted. Is this correct? What is the remedial measure?
From India, Cochin
Acknowledge(0)
Amend(0)
Can anyone clarify whether PF needs to be deducted for an employee whose salary got increased from Rs 5000 to 7500? PF was deducted from his salary when his salary was Rs 5000. Now his PF is not deducted. Is this correct? What is the remedial measure?
From India, Cochin
Acknowledge(0)Amend(0)
PF is to deducting 12% from ermployee’s basic salary. if the basci salary crossing more than 6500/-, the mgt fix the 780/-.
From India, Hyderabad
Acknowledge(0)Amend(0)
170From India, Hyderabad
Acknowledge(0)Amend(0)
An employee who is once covered by PF should continue to be covered irrespective of any hike in his salary. Therefore, your act of not deducting PF when his salary was increased to Rs 7000 is wrong. Of course, you can restrict the contribution to 12% of Rs 6500 and need not contribute 12% of Rs 7000, but continued coverage is mandatory.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Once a covered employee will continue with the PF deduction irrespective of a hike in the salary. Yes, the deduction could be made on the ceiling amount of Rs. 6500/-, i.e., Rs. 780/-. However, it should not vary from person to person. All employees' deductions should be at Rs. 6500/-. A hike in salary will not affect PF deduction once it is covered. Non-deduction is illegal and will be recovered by PF officials with interest and damages.
Pramod
From India, Mumbai
Acknowledge(0)Amend(0)
Pramod
From India, Mumbai
Acknowledge(0)Amend(0)
Once an employee is a member of PF in an organization, despite a hike in salary (above Rs. 6500/- basic), the employee will continue to remain under the PF Act. As explained by Mr. Pramod Pandey and Mr. Madhu, non-deduction of PF is illegal. The PF authorities shall treat this as non-compliance.
From India, Calcutta
Acknowledge(0)Amend(0)
From India, Calcutta
Acknowledge(0)Amend(0)
Dear Honorable Member,
Most of the members have rightly advised you. The Employees' Provident Fund Scheme, 1952 stipulates that where the monthly pay of any member of PF exceeds Rs. 6500 per month, the contribution payable by him and in respect of the employer shall be limited to the amounts payable on a monthly pay of Rs. 6500 including dearness allowances, retaining allowance (if any), and cash value of food concession.
BS Kalsi
New Member
From India, Mumbai
Acknowledge(0)Amend(0)
Most of the members have rightly advised you. The Employees' Provident Fund Scheme, 1952 stipulates that where the monthly pay of any member of PF exceeds Rs. 6500 per month, the contribution payable by him and in respect of the employer shall be limited to the amounts payable on a monthly pay of Rs. 6500 including dearness allowances, retaining allowance (if any), and cash value of food concession.
BS Kalsi
New Member
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Honorable Member,
It's mandatory to deduct the PF from salary. The limit is 6500/- per month, including Special allowance. You can deduct 780/- on a 6500/- salary. If the salary increases from 6500/-, then it depends on the employer if the employer wants to deduct excess PF on the increased salary; he can deduct. However, you can't stop the deduction of PF. Legally, this is wrong.
From India
Acknowledge(0)Amend(0)
It's mandatory to deduct the PF from salary. The limit is 6500/- per month, including Special allowance. You can deduct 780/- on a 6500/- salary. If the salary increases from 6500/-, then it depends on the employer if the employer wants to deduct excess PF on the increased salary; he can deduct. However, you can't stop the deduction of PF. Legally, this is wrong.
From India
Acknowledge(0)Amend(0)
Dear Member,
As per the PF Act, the deduction is not mandatory if an employee's salary exceeds 6500/-. The employer is not liable to deduct or submit PF to the organization greater than 6500/-
Santosh Choudhary
From India, Bhopal
Acknowledge(0)Amend(0)
As per the PF Act, the deduction is not mandatory if an employee's salary exceeds 6500/-. The employer is not liable to deduct or submit PF to the organization greater than 6500/-
Santosh Choudhary
From India, Bhopal
Acknowledge(0)Amend(0)
Dear All,
It is mandatory to deduct his PF even if his salary is increased more than 6500 since he has been a member of EPF. We can exempt an employee only when his basic salary at the time of joining is more than 6500. But if his salary at the time of joining is less than 6500, he becomes a member, and after it increases more than 6500, he still continues to be a member, and we cannot exempt him.
Some other information about PF is attached.
From India, Mumbai
Acknowledge(0)Amend(0)
It is mandatory to deduct his PF even if his salary is increased more than 6500 since he has been a member of EPF. We can exempt an employee only when his basic salary at the time of joining is more than 6500. But if his salary at the time of joining is less than 6500, he becomes a member, and after it increases more than 6500, he still continues to be a member, and we cannot exempt him.
Some other information about PF is attached.
From India, Mumbai
Acknowledge(0)Amend(0)
Hari om Friend, Yes no doubt It is compulsory to deduct his PF even if his salary is incresed more than 6500.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
There is no specific format for such a request as you have to provide the details of the matter or circumstances for consideration by the RPFC. However, there is no provision under the Act to grant any relief in all such cases of financial crises, except to consider the same at the time of levy of damages or at the time of granting installment facility after the assessment of dues, etc. Please ensure that you have deposited the employee's share regularly.
ChandokAK
RPFC (Retd.)
From India, Chandigarh
Acknowledge(0)Amend(0)
ChandokAK
RPFC (Retd.)
From India, Chandigarh
Acknowledge(0)Amend(0)
It can't be overruled if an employee has been registered for EPF until he/she finishes the job at the same company. The limit can be fixed up to 12% of 6500 (salary maximum limit for EPF). Please draft a policy with your management if your organization really wants to deduct/provide 12% EPF of the total salary.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Provident Fund - Excluded Employee - Definition.pdf
SALARY with out PF Deduction.xls