I\'m planning to start new consultancy services which provides cctv operators to MNC companies. I have to design pay slip for my employees. Please help me out on procedure to open PF account, Criteria to be met for PF contribution, If basic salary = 6500, Then is PF mandatory? If basic salary < 6500, Then is PF mandatory? If basic salary > 6500, Then is PF mandatory? Let me know, When PF is mandatory and when PF is optional?
Thanks in advance.
Regards,
Govardhan.

From India , Bangalore
In case of employees where Basic Pay and DA component exceeds 6500/- per mensem, it is optional. But, in view of the larger prospective retirement benefits and on the basis of the company being deducting and paying contribution, one should opt for this. However once one reaches a salary of more than 6500, 8.33% of maximum 6500/- of employer\'s contribution is paid to EPS and balance 3.67% to EPF. Similarly, 0.5% is paid towards EDLI.
Those who are getting the basic pay (Basic + DA) below than Rs.6500/- they has to cover with the PF. If once an employee covered with PF, after that if his Basic pay crosses Rs.6500/- his basic payment to be restricted to Rs.6500/- and the contributions to be paid on Rs.6500/- only without fail.

From India , Tirunelveli

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