Pf exemption

geeta (Querist) 19 November 2011 This query is : Resolved
please suggest in which situation the provident fund contribution from employee and employer is exempt.

Pf is applicable to trainee employees also?

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Shailesh Kr. Shah (Expert) 20 November 2011
situation the provident fund contribution from employer is exempt.

Answer:
Act not to apply to certain establishments-
(1) This Act shall not apply –
(a) to any establishment registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State relating to co-operative societies employing less than fifty persons and working without the aid of power; or
(b) to any other establishment belonging to or under the control of the Central Government or a State
Government and whose employees are entitled to the benefit of contributory provident fund or old age
pension in accordance with any Scheme or rule framed by the Central Government or the State Government
governing such benefits; or
(c) to any other establishment set up under any Central, Provincial or State Act and whose
employees are entitled to the benefits of contributory provident fund or old age pension in accordance with
any scheme or rule framed under that Act governing such benefits;
(2) If the Central Government is of opinion that having regard to the financial position of any class of
establishments or other circumstances of the case, it is necessary or expedient to do so, it may, by
notification in the Official Gazette, and subject to such conditions, as may be specified in the notification,
exempt whether prospectively or retrospectively that class of establishments from the operation of this Act for
such period as may be specified in the notification.

also not applicable, if not fulfill conditions of section 1.

Shailesh Kr. Shah (Expert) 20 November 2011
situation the provident fund contribution from employee is exempt.

Answer: When salary/wages is more than rs.6500.

Pf is applicable to trainee employees also?

Answer: Yes, If he is engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961) or under the standing orders of the establishment;

Rajeev Kumar (Expert) 20 November 2011
I agree with expert

geeta (Querist) 21 November 2011
Thanks sir,

The salary of employee is more than 6500/- (it is gross or net (or basic + DA)?

Then employee and employer's contribution is not required?