Is it mandatory to deduct PF on salary on monthly basis?

An interest amount based on the monthly operating balance is awarded and added to the fund at the end of the financial year. EPF deduction is mandatory for employees who draw a salary less than Rs 15,000, but others can opt-out of this scheme through a declaration made in Form 11 of EPFO.

Is it mandatory to deduct 10\% pf?

Clarity from EPFO Now, the EPFO has made it clear that it is not mandatory for either employers or employees to reduce the contributions to 10 per cent. “The reduced rate of contribution (10 per cent) is the minimum rate of contribution during the period of the package.

Can I stop my PF deduction?

20 – Whether an employer can stop paying Employees’ Provident Fund contribution in respect of a member who had attained the age of 55 or 60? Ans : No. The Employees’ Provident Fund Contribution should be paid till the date of his leaving the service, irrespective of the age of the member.

Is deducting PF over 15000 Mandatory?

Those earning basic wages more than 15000 per month, EPF contribution is not mandatory. Also, the employer can choose to limit its contribution towards EPF to 12 per cent of Rs 15,000 (Rs 1,800) under Section 26A of EPF act for those employees earning more than Rs 15,000 per month as basic wages.

Can I ask employer not to deduct PF?

An employee can opt out of the provident fund if the following criteria are met: If he/she is a first-time employee i.e., at the time of joining the first job. The employee has his or her Basic + DA (PF Wages) more than Rs. 15000/- per month.

Can I ask my employer to deduct less PF?

If an employee wants to opt out of PF, he can fill out Form 11 at the time of joining his first job. He will also have to present a letter addressing the employer stating that he wishes to opt out of the Provident Fund Scheme.

Why my employer contribution is less in PF?

The money contributed by an employer goes towards different schemes. Of the basic salary, about 3.67\% goes towards EPF or for investments, and 8.33\% goes towards Employee Pension Scheme (EPS). If your basic salary is ₹30,000, the employer’s contribution for EPS will be ₹1,250 a month.

Can employer deduct Provident Fund contribution from employee salary?

Rules laid down by the EPFO clearly state that the contribution made by the employer cannot be deducted from the member/employee’s salary component. Provident Fund contribution by employer and employee 2020: Provident fund is an important retirement planning and tax-saving facility for salaried individuals.

Is it compulsory for every employee to pay provident fund?

Now, it is not compulsory for every employee to pay Provident Fund. Employees having basic salary more than 15,000 have an option to opt out of PF at the time of joining the company. But once you opted for PF you cannot again opt out of it. If your basic salary is less than 15k a month, then you have no option other than getting your PF deducted.

Is it mandatory for employer to contribute 12\% of salary to EPF?

It is mandatory for the employer to contribute 12\% of employee’s salary plus dearness allowance to EPF account of the employee each month. Delay in payment attracts 12\% simple interest.

How much of basic salary+Dearness Allowance is contributed to employee provident fund?

As per EPF rules, 12 per cent of an employee’s Basic salary+Dearness Allowance is contributed to their Employee Provident Fund account. A matching sum is contributed to the provident fund by the employer.