Query on pf applicability and calculations

Dear Forum

I wish to have your clarification on matters relating to PF. There are 2 cases. In both, the PF is with Government.

Case 1

There are 40 employees in the company. Some have basic salary less than 15,000/- per month; some have basic salary more than 15,000/- pm. Where it is less than 15,000 pm there is PF deduction of 12% on basic salary. If it is more, the employees are given option to join the PF scheme or not. If any body opts to join, there is PF deduction @ 12% on basic salary. If somebody is having 20,000 basic salary pm, there is PF deduction @ 12% on 20,000 ie 2,400/-. If somebody does not want to join, there is no PF deduction.

Case 2

There are 40 employees in the company. Some have basic salary less than 15,000/- per month; some have basic salary more than 15,000/- pm. Where it is less than 15,000 pm there is PF deduction of 12% on basic salary. If it is more, the employees are not given option to decide if they would like to join the PF scheme or not. If somebody is having 20,000 basic salary pm, there is PF deduction @ 12% on 15,000 ie 1,800/-.

Which company is correct as far as compliance of PF provisions are concerned. Is there any non compliance on any company's part.

Regards

Dipjyoti Majumdar