Epf on 6500/- & >

This query is : Resolved

GOS (Querist)
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29 June 2012 Sir/Madam,
Please confirm whether an Organaisation can avoid EPF coverage to a person or to their newly appointed persons with a starting Basic salary Rs.6500/- and above, if so give the EPF rules details in this regard.
S.Ram / 29-6-2012

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 June 2012 n respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA , Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month.

But PF contribution must be uniform.

For details see below link--

http://www.epfindia.com/payments.htm

Ki$hor B

Ki$hor B (Expert)
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29 June 2012 If the employee has no account with the PF at the time of joining your company then contribution towards PF can be avoided.

This is as per the Act but usually companies follow uniform policy (as said by Sanjay bhai) & deduct PF from the salary of all employees.

Pls. note this reply is only wrt to the criteria you've mentioned in your Q.

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