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PF & ESI limit

neetu (CA) (45 Points)

31 May 2010

Please let me know the latest rule, maximum limit of salary for PF & ESI Deduction and which allowances are included in salalry limit,

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4 Replies

DINESH KUMAR (SERVICE) (53 Points)
Replied 01 June 2010

Dear Neetu,

Limit for PF is Rs. 6500/- pm and w.e.f. 01.05.2010 limit for ESI is Rs. 15000/- pm . No allowances are included in Rs. 6500/- limit for PF purposes , however all allowances are included in Rs. 15000/- limit for ESI purposes .

CA. Dinesh Kumar Aggarwal

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Mahendra (chief executive -finance) (21 Points)
Replied 01 June 2010

Shall the PF be deducted If anyone drawing salary more than 6500/-?

DINESH KUMAR (SERVICE) (53 Points)
Replied 01 June 2010

In case basic salary is exceeding Rs. 6500/- , PF is not applicable.

However in case of exisitng employees if basic salary crosses limit of Rs. 6500/- at any time ,PF Act will remain applicable and will be deducted only on Rs. 6500/- .