Provident Fund

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27 May 2008 An employee is drawing a salary of Rs.6,500/- p.m. and he doesn't want to contribute in the Provident Fund. So therefore is it allowed? If Yes, then what will be the employer's contribution in this case?

CA Anuj Garg

CA Anuj Garg (Expert)
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27 May 2008 Dear as per law if salary of an employee is below the specified limit,Employer has to to deduct PF on it whether employee want it or not coz its employer's responsibility.

and if employer dnt deduct PF he is not required to pay anythng from his pocket ie employer's contribution

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27 May 2008 thanx a lot for the reply sir. . . bt sir what is the limit of salary as per law? and CONSEQUENCES of non-deduction of provident fund?

SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)
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29 May 2008 Any organisation having less than 10 employee are not covered under PF Act. But when a organisation is covered under the act then he has to deduct pF contribution as per act irrespective of salary amount.

Regards,
Sandeep Aggarwal

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29 May 2008