03 February 2009
Membership of PF is not compulsory for the employees who are appointed on salary (Basic+DA) above Rs.6,500/- pm. Such employee can be member only if his employer binds himself in writing to pay the dues under the Act in respect of him and the employee also agrees for deduction of his contribution from his pay.
But where, after becoming member of PF, employee's salary gets increased subsequently to over Rs. 6,500 pm, his membership of PF does not end- but continues, with the limitation that compulsory pf contributions get freezed on pay upto 6,500/-.
Contribution on the excess pay is optional for employee.