Provident Fund Queries

Human Resources » Compensation & Benefits

	Message From: alexboud	Total Posts: 18	Join Date: 14/02/2007
Rank: Executive	Post Date: 16/01/2012 01:34:52	Points: 90	Location: United States

I have a few queries on PF. Could the honorable members of the group please look into them?

1.What is the limit above which basic salary PF is not mandatory (is there such a limit)?

2.If a company has employees who draw a basic salary above this limit, can the company not register under PF?

3.If a company has registered under PF, can it cap (put an upper limit to) the PF, i.e. say that they will deduct / pay the PF only till such limit or any other limit the company may decide?

I’ll be grateful to receive advice.

	Message From: tara	Total Posts: 34	Join Date: 14/02/2007
Rank: Executive	Post Date: 16/01/2012 01:36:05	Points: 170	Location: United States

Hi Alex:

1. 6500

2. Irrespective of how many fall under / above this limit a company has to register with PF if the number of full-time employees is 20 or more.

3. Yes. The limit has to be atleast 6500 for people with basic > 6500 (for those employees who opt for PF), and basic salary for ones basic lower than 6500.

However, the contribution to PF cannot be reduced or membership of an employee withdrawn, once a member.

rgsd/tara