Respected Seniors,
I have a few questions on PF.
1. Is PF compulsory for all?
2. If anybody wants to opt out of PF, what are the criteria?
3. If an employee is presently covered by PF, does he have any option to come out of the coverage of PF if he desires to?
I am working in a healthcare BPO where the employees are mostly young and never want to have PF. It's a peculiar problem for which I don't have an answer. So far, I have gathered some information on it which I have provided below:
1. If an employee is covered by PF even once in any company, he must continue to be covered by PF irrespective of wherever he works.
2. If one's salary is more than Rs 6500/-, he can opt out of PF.
3. If an employee submits a written declaration that he is willing to be outside the coverage of PF, it has to be accepted by the employer.
Awaiting your advice, please.
Subhabrata Das Gupta
From India, Calcutta
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I have a few questions on PF.
1. Is PF compulsory for all?
2. If anybody wants to opt out of PF, what are the criteria?
3. If an employee is presently covered by PF, does he have any option to come out of the coverage of PF if he desires to?
I am working in a healthcare BPO where the employees are mostly young and never want to have PF. It's a peculiar problem for which I don't have an answer. So far, I have gathered some information on it which I have provided below:
1. If an employee is covered by PF even once in any company, he must continue to be covered by PF irrespective of wherever he works.
2. If one's salary is more than Rs 6500/-, he can opt out of PF.
3. If an employee submits a written declaration that he is willing to be outside the coverage of PF, it has to be accepted by the employer.
Awaiting your advice, please.
Subhabrata Das Gupta
From India, Calcutta
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Hello Subhabrata,
PF is compulsory for individuals with a gross salary equal to or below 6500. THERE IS NO CHOICE FOR THIS CATEGORY. If you fail to enroll in the PF scheme, you will receive a notice sooner or later from the local PF department, and then your company will be required to pay significant arrears for every employee, including those who have left, for all the periods served.
If an employee's salary exceeds 6500, PF enrollment becomes optional. If you have any other questions, feel free to let me know.
Riyaz
From India, Delhi
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38PF is compulsory for individuals with a gross salary equal to or below 6500. THERE IS NO CHOICE FOR THIS CATEGORY. If you fail to enroll in the PF scheme, you will receive a notice sooner or later from the local PF department, and then your company will be required to pay significant arrears for every employee, including those who have left, for all the periods served.
If an employee's salary exceeds 6500, PF enrollment becomes optional. If you have any other questions, feel free to let me know.
Riyaz
From India, Delhi
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Dear Subhabrata Das gupta, What ever Mr. Riyaz has said is absolutely true, there is no escape from the PF. It is statutaory and mandotary.
From India, Delhi
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From India, Delhi
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Provident Fund - Excluded Employee - Definition.pdf