Provident Fund

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SHAAN (Querist)

15 June 2010 In PF act limit of rupees 6,500 is specified for deduction. If an employee has salary of rupees 10,000/- pm then whether PF is deductable on 6500/- or on 10,000/- or the employee has an option to ask his employer not to PF from his salary.

what about the employer's contribution in all above situation.

It will be more thankful if anybody reply will appropriate circular/notification/ case laws.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 June 2010 If the employee having salary more than Rs.6500/- he can ask employer can deduct only protion of Rs.6500 only but it based on employer policy also whether he will agree or not agree in his decision. if agree then both employer and employee contribution based on Rs.6500/- only

If a employee not an memeber in PF previously and having salary more than Rs.6500, he can ask employer not opting PF, If he is already a memeber of PF cannot be opt like that

SHAAN

SHAAN (Querist)

15 June 2010 Thanks Krishnan, thanks for your early response.

But I counldn't understand your second para, ie., you mean to say that If an employee is joining his first job then only he has the option to ask his employer not to deduct PF.

or

The employee is not a member of the PF in which the employer has an PF account.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 June 2010
A employee whether his first job or not, he is already got registered with PF and having PF registration he cannot opt the No PF deduction.

Simple ward existing PF memebrs cannot tell don`t want PF deduction even their salary More than Rs.6500/- but they can tell deduct PF only on Rs.6500

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