Had one doubt. We recruited one new employee to our company. While having a salary discussion with him, he said he doesn't want PF. HR is asking for 25,000 take-home. We decided to give him a gross of 25k (including PF). However, he doesn't want PF but wants 25k in hand. Can we exclude him from PF? Please guide me.
From India, Trivandrum
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From India, Trivandrum
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Hi,
If your company is already covered under PF, then you cannot exclude him from PF. Still, if you want PF, don't bring him on rolls. Hire him on a short-term contract basis as a Retainer consultant wherein only 10% TDS has to be deducted. This is also a temporary measure only. Even for consultants, PF is mandatory.
From India, Madras
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1015If your company is already covered under PF, then you cannot exclude him from PF. Still, if you want PF, don't bring him on rolls. Hire him on a short-term contract basis as a Retainer consultant wherein only 10% TDS has to be deducted. This is also a temporary measure only. Even for consultants, PF is mandatory.
From India, Madras
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Nisha, this topic has been discussed so many times that I am tired of even seeing the heading. Please use the search option on the main page, and you will see all the discussions.
If the person already has a PF account, then you will have to include him in PF, and you both don't have a choice. If he does not have an existing PF account, since his starting salary with you is above 15,000 a month, you can treat him as an exempt employee and exclude him, but do the paperwork properly.
From India, Mumbai
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If the person already has a PF account, then you will have to include him in PF, and you both don't have a choice. If he does not have an existing PF account, since his starting salary with you is above 15,000 a month, you can treat him as an exempt employee and exclude him, but do the paperwork properly.
From India, Mumbai
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx