PF Deduction Rules - Pf Deductions

dear concern
sir i want to know that how govenment fix minimum wages and what are the basis?

Hi,
this restriction can be from employer's side , not from employee's side.

An employee's deduction has to be minimum of 12% of Basic salary ..i.e if the basic is 7000 then it has to be 12% of 7000 ( it cannot be 12% of 6500).
however, an employer has the ption to restrict his contributin to 12% of 6500 ( i.e may not contribute 12% of 7000).
Regards,
jeene

Hello to all,
There is 1 more rule which is called voluntary pf contribution. For this any employee whose salary is equal or more than 6500 can contribute maximum of 20% of his/her basic as pf.
In form no. 3A there is a option for voluntary pf contribution where u have to put the amount.
As per as employer part is concerned that employer has to pay 12% only if basic is = or <6500. for basic more than this limit company has exeptions.
Thanks
Sanju Singh

Dear All,
I've gone through all the discussion....As i would like to put up my conclusion....
If anyone getting salary(Basic+DA) more than 6500 & both(Employee & employer) are mutually agreed for deduction on total salary(Basic+DA) then it can be deducted...But only one thing is mandatory for employer only is to deposit Rs.541/- in pension fund(A/c 10) & rest will be deposited in EPF(A/c 1) & also the wages for account no.-10 is only including Rs.6500 for that employee..... Hope that everything will be cleared from my opinion........

hi all
my total salary is 16000 and basic salary is 11200. i had taken a leave in the month then my total basic salary is 10839
for this my pf will deduct on rs. 6500 @ 12% = rs. 780.00
my employer deduct this leave in rs. 6500 and made my pf rs 755.00
is it right please confirm.
regards
vikas gupta
9311334683

Hi! I am working as a HR in Construction Company. I am having one quiry. Do we have to Deduct PF from Labour's Payment.If yes then what about the rules for PF deduction? Kindly reply urgently.

Deduction of Provident fund from salary higher then 6500, is solely company's decision.If company agrees to deduct, it is possible to deduct pf.

[QUOTE=karkerapramod;1145810]Hai
If employee is willing to contribute PF, it is Employer's discretion to add his name in PF list. An employee will get more than 6500/- (Their salary is 7000, 10000 or 15000) you can add them in PF contribution and deduct PF for ceiling amount of Rs 6500.
Mano Kavin

If Basic Salary is above Rs.6500/- is it compulsory to deducted PF ?

Shalini,
The employee's demand is legally right. According to Para 30 of the EPF Scheme, 1950 and other provisions, an employee drawing wages (Basic+DA) exceeding Rs.6,500 is liable to PF contribution only to the extent of Rs.6,500 i.e. Rs.780.
Janardhan,
Regarding your query, for employees drawing basic wages exceeding Rs.6,500, can be regarded as excluded employees and are not liable for PF deduction IF HE WAS NOT THE MEMEBER OF THE FUND PREVIOUSLY. For statutory compliance, employer is advised to take a declaration from the concerned employee to that effect. For the employees who have PF membership, PF contribution is mandatory to the extent of Rs. 6500 even if the salary earned is over and above that figure.