Pf_query

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Hai..

There is nothing wrong in deducting pf on Rs.6500/- as it is not mandatory to deduct. so he can contribute any amount voluntarily for those employers whose salary exceeds 6500/- as welfare measure.

Hello

I think that as per section 6 of THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952,

Contributions and matters which may be provided for in Schemes. – The contribution which shall be paid by the employer to the Fund shall be ten percent. Of the basic wages, dearness allowance and retaining allowance.

This 10% is replaced to 12%.

So he should contribute 12% of 60000 instead of 6500 if he is covered by EPFO.

There is a provision in EPF & Misc Act to not deduct PF when Basic salary amounting Exceeding Rs 6500/-p.m.  For such employer shd take a form duly signed by employee. Deduction by employer is corect in my opinion.