Hi,
The company has an option for PF. An employee can Opt-in and Opt-out from the PF, while he is joining the organization. As per this, we need to keep PF as 12% of the Basic (not limiting to 1800).
Is there any clause or notice regarding that we can reduce the PF amount or not.
Employee has a choice of not opting for PF only during the first job. If once enrolled for PF, employee can’t opt-out of PF.
Many corporations keep minimum PF at 1800 to decrease their liability, although 12% of basic is alway recommended.
With Code of Wages 2019, there is no clarity if companies can continue to keep minimum PF of 1800 or will there be compulsion of contributing at 12% of basic.
Yes, Rs 15000 is the ceiling of salary up to which the employer has to contribute compulsorily. Above that is optional only.
Thank you.