EPF

This query is : Resolved

Saroj Kumar Tiwari (Querist)
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03 June 2011 Dear Sir My client is working in company and his PF was deducted by employer. but now he has gotten promotion and his salary has increase more than 6500. his employer has decided PF will be not deducted. now the question is that whether my client should continue there pf a/c by depositing self payment or any other option is there.

Thanks & Regards
Saroj Tiwari

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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03 June 2011 Once the PF deduction is applied to an employee, it can not be withdrawn even if his basic salary exceeds 6500/-.

The employer has the option to deduct & deposit its contribution, only on 6500/-.

So suppose his basic salary has become 8000/-, employer is free to contribute only
6500 X 12% = 780/- per month.