Pf deduction in case of basic > rs..6500/-

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2014 hi,
if the basic salary of the employee is above Rs.6500/- then is it compulsory to deduct 12% of the basic or is it ok if we deduct only Rs.780/- p.m.(12% of 6500) ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

15 March 2014 It will be sufficient compliance with the Act if the PF is deducted on Rs. 6,500/- since the Act stipulates that the maximum salary shall be Rs. 6,500/-

The employer & the employee may agree to contribute on the total basic salary.