Pf on basic pay above rs. 6500

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This query is : Resolved

CA. RAGHAV GARG (Querist)

25 March 2012 Is it compulsory to deduct PF from employees having salary of more then Rs. 6500/- pm at Rs. 6500/- or it is obligatory and depend upon choice of employee ?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

26 March 2012 Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable to:

* Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette. (List of Industries/Establishments)

* Employing 20 or more persons .

* Cinema Theatres employing 5 or more persons.

The Act does not apply to:

* The co-operative societies employing less than 50 persons and working without the aid of power. 16(1)(a)

The establishment to which this Act applies shall continue to be governed by this Act , even if the number of employees falls below 20 at a later date. [ 1(5)].

FOR ANY QUERY GO TO:
https://epfindia.nic.in/epfo_directory.htm

CA. RAGHAV GARG

CA. RAGHAV GARG (Querist)

26 March 2012 My Question is not regarding the applicability... I know PF act is applicable as there are more then 20 employees..

Then is it compulsory to deduct PF of employees having salary of more then Rs. 6500/- or is it upon will of employees???

CA. RAGHAV GARG

CA. RAGHAV GARG (Querist)

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

26 March 2012 1.If Any employees jumps to cross the limit of PF Ceiling his PF should be deducted up to cieling limit (6500) but definately to be deducted being he is already a member of PF and can't cease to be until leaves the organisation.

2. In case of a new member it depends whether he is declaring his past association with other companies on form no. 11 or not. IF was getting his PF deducted their it will be deducted in new company and if not it may not be deducted. PF inspectors hold the power to cross verify these form 11 in case of non contribution of employees. It is really not mendatory in case of a fresher who is getting basic more than 6500.

3. YEs definately there a lot of companies which are not deducting the PF of said employees.

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