It has been widely observed that Companies put Rs. 6500/- basic salary as the upper limit for giving PF.
My question is can we put Rs. 10,000 OR any amount over 6500 but less than actual basic salary as the cieling for PF (for people whose salary is above 6500/-)?
Is it Legal?
rolly
From India, New Delhi
8My question is can we put Rs. 10,000 OR any amount over 6500 but less than actual basic salary as the cieling for PF (for people whose salary is above 6500/-)?
Is it Legal?
rolly
From India, New Delhi
Hi Rolly,
As per the provisions of Provident Fund and Miscelleneous Provisions Act, those employees who have been drawing a basic salary of upto Rs 6500/- have to be included under PF. However you can also include those employees whose basic salary is above 6500/- but if an employee is already a member of PF and his/her basic salary crosses the limit of Rs 6500/- due to increment, he will continue to be a member of the PF till the time he is on the payroll of the same company. As far as ceiling is concerned it is 6500/-. You cant raise it as per your wish. Either it should be 6500/- or the actual basic salary whatever it is.
Amit Goyal
From India, Delhi
As per the provisions of Provident Fund and Miscelleneous Provisions Act, those employees who have been drawing a basic salary of upto Rs 6500/- have to be included under PF. However you can also include those employees whose basic salary is above 6500/- but if an employee is already a member of PF and his/her basic salary crosses the limit of Rs 6500/- due to increment, he will continue to be a member of the PF till the time he is on the payroll of the same company. As far as ceiling is concerned it is 6500/-. You cant raise it as per your wish. Either it should be 6500/- or the actual basic salary whatever it is.
Amit Goyal
From India, Delhi
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
PF clarification on leave encashment.jpg