Query on PF Deduction

This query is : Resolved

Ajoy Singh (Querist)
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29 November 2019 Dear Sir,

Please guide me on the following topic............................

PF deduction as per new judgement by Supreme Court.

Is it compulsory for a Pvt. Ltd. Company, to deduct PF on gross salary instead of (Basic + D.A) as per the recent verdict on " PF will be deducted on Gross Salary unto Rs 15,000/- " by the Supreme Court.
If PF is not deducted on gross salary , then what action will be taken by PF Dept. Because the PF Dept. has not issued any specific notification on PF Deduction on Gross Salary"

So Please guide Sir. It is very URGENT...

With Regards

Ajoy Singh

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

(Expert)
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29 November 2019 According to recent judgement, PF is to be recovered for allowance except House rent allowance subject to maximum of Rs.15,000/-.

The following are to be considered :
1. There is no issue for employees drawing gross salary more than Rs.15,000/- and PF is deducted upto Rs.15,000/-.
2. There is no issue for employees drawing gross salary less than Rs.15,000/- and PF is deducted for gross salary less HRA .
3. But due care to be taken for employees drawing gross salary more than Rs.15,000/- but PF is not deducted up to Rs.15000/- ( For example one employee gross salary Rs.30,000/- and his basic and DA is Rs.10,000, PF deducted is only for Rs.10,000/- ). In this case PF Deduction must be made at least for Rs.15000/-.
In short PF will attract whatever may be the name of allowance if it is uniformly paid to particular category of employees .

It should be strictly followed . The PF department will inspect records at any time and if they found default , they will issue to the directors.

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