Hi,
Our organization allows employees to choose whether they would like to make a PF contribution or not. In cases where an employee does not wish to opt for PF, we require a declaration. Can anyone guide me on whether there is a specific PF form for making such a declaration?
Need assistance.
Regards,
Ruchi
From India, Mumbai
Acknowledge(0)
Amend(0)
12Our organization allows employees to choose whether they would like to make a PF contribution or not. In cases where an employee does not wish to opt for PF, we require a declaration. Can anyone guide me on whether there is a specific PF form for making such a declaration?
Need assistance.
Regards,
Ruchi
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
Thank you for your reply. I understand, but as per the PF Act, if the employee's salary is above 6500, then the company has the option not to deduct PF for those employees. Please correct me if I am wrong.
P.S: Also, we have fewer than 5 employees drawing a basic of less than 6500.
From India, Mumbai
Acknowledge(1)Amend(0)
Thank you for your reply. I understand, but as per the PF Act, if the employee's salary is above 6500, then the company has the option not to deduct PF for those employees. Please correct me if I am wrong.
P.S: Also, we have fewer than 5 employees drawing a basic of less than 6500.
From India, Mumbai
Acknowledge(1)Amend(0)
Dear Ruchir,
An employee whose wages/salary or pay exceeds Rs. 6500/- per month will be an excluded employee and is not covered by the Act. If so, why is a declaration needed at all? In fact, it is the opposite. If an employee who is not eligible for P.F. contribution under the Act can, in fact, opt for contribution by making an application for the same.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
An employee whose wages/salary or pay exceeds Rs. 6500/- per month will be an excluded employee and is not covered by the Act. If so, why is a declaration needed at all? In fact, it is the opposite. If an employee who is not eligible for P.F. contribution under the Act can, in fact, opt for contribution by making an application for the same.
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
Let me correct it as an employee whose salary (basic+DA) "at the time of his joining" exceeds Rs 6500 shall be an excluded employee. But before his joining your establishment, if he had PF with the previous company and the said account is remaining unclaimed or if he is not a PF pensioner (please read it as PF pensioner only), he is to be covered even if his salary exceeds Rs 6500.
In order for a new employee whose salary at the time of joining exceeds Rs 6500 to be excluded, the employer should collect Form 11, which is in the form of a declaration by the employee that he has not been a member of PF or has withdrawn his PF accumulations or is a PF Pensioner.
Please note that for PF, there is no age limit, and even a person who is getting a Govt. pension is covered, and only a PF Pensioner is excluded.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(1)
Amend(0)
In order for a new employee whose salary at the time of joining exceeds Rs 6500 to be excluded, the employer should collect Form 11, which is in the form of a declaration by the employee that he has not been a member of PF or has withdrawn his PF accumulations or is a PF Pensioner.
Please note that for PF, there is no age limit, and even a person who is getting a Govt. pension is covered, and only a PF Pensioner is excluded.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(1)Amend(0)
Dear All,
As Madhu stated, the point is correct, and it is the general practice followed in corporates. However, keeping track of all employees can be a difficult task. If an employee joins with a salary of Rs 6500 and above, then he can be excluded, provided that he is not a PF member at any time during his career. If he is a member, then all his PF accounts should be closed.
Regards,
Pandey
From India, Mumbai
Acknowledge(0)Amend(0)
As Madhu stated, the point is correct, and it is the general practice followed in corporates. However, keeping track of all employees can be a difficult task. If an employee joins with a salary of Rs 6500 and above, then he can be excluded, provided that he is not a PF member at any time during his career. If he is a member, then all his PF accounts should be closed.
Regards,
Pandey
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Ruchi, Good Evening! yes U r right. If any employee whose basic salary is beyond 6500. So he can take exemption from PF deduction with duly written declaration. Rgds
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
If the employee received a basic salary above 6500 pm, it means there is an exemption from paying PF contribution by both sides. If the company has a policy not to pay, they can. If the employee is not willing to pay the contribution, they also can. However, the employee should not have worked somewhere and paid PF earlier. In that case, the management should obtain a concern letter from the employee as well as Form 11.
Ganesh
9962603678
HR & Legal Consultant Pvt Ltd
From India, Madras
Acknowledge(0)Amend(0)
If the employee received a basic salary above 6500 pm, it means there is an exemption from paying PF contribution by both sides. If the company has a policy not to pay, they can. If the employee is not willing to pay the contribution, they also can. However, the employee should not have worked somewhere and paid PF earlier. In that case, the management should obtain a concern letter from the employee as well as Form 11.
Ganesh
9962603678
HR & Legal Consultant Pvt Ltd
From India, Madras
Acknowledge(0)Amend(0)
Dear Mr. Ganesh,
Good Afternoon!
I would be highly obliged if you could provide some suggestions for the below-mentioned case:
One of the ex-employees left the company in April 2010 due to the non-continuance of the company's business in his territory. However, there was no letter issued to him either by the then HR personnel of the company or by his immediate reporting officer. He was only verbally informed that the territory was being closed.
After almost two years, he sent a legal notice through the court to the company under the Payment of Wages Act 1936.
What should the company do now? Can they ignore the letter or do they have to appear before the Court?
Looking forward to your response.
Thanks & Regards,
Abhay Raj
From India, Mumbai
Acknowledge(1)
Amend(0)
Good Afternoon!
I would be highly obliged if you could provide some suggestions for the below-mentioned case:
One of the ex-employees left the company in April 2010 due to the non-continuance of the company's business in his territory. However, there was no letter issued to him either by the then HR personnel of the company or by his immediate reporting officer. He was only verbally informed that the territory was being closed.
After almost two years, he sent a legal notice through the court to the company under the Payment of Wages Act 1936.
What should the company do now? Can they ignore the letter or do they have to appear before the Court?
Looking forward to your response.
Thanks & Regards,
Abhay Raj
From India, Mumbai
Acknowledge(1)Amend(0)
Dear Ganesh, Please post your query as a separate post since this thread pertains to PF and not to disputes relating to Payment of wages after two years of leaving the company. Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
From India, Kannur
Acknowledge(0)Amend(0)
Hi Abhay Raj,
You should not ignore the court notice. If you do, it may be considered as your absence being ex parte, which means you have to comply with the court's order. Therefore, you should go to the labor court and explain the details. In your case, did you send any explanation letter to the employee at the time of absence? If so, you are safe. Just give me a call, and I will provide you with advice.
Ganesh HR & Legal Support Consultants Pvt Ltd
(0)9962603678
From India, Madras
Acknowledge(0)Amend(0)
You should not ignore the court notice. If you do, it may be considered as your absence being ex parte, which means you have to comply with the court's order. Therefore, you should go to the labor court and explain the details. In your case, did you send any explanation letter to the employee at the time of absence? If so, you are safe. Just give me a call, and I will provide you with advice.
Ganesh HR & Legal Support Consultants Pvt Ltd
(0)9962603678
From India, Madras
Acknowledge(0)Amend(0)
Hi all,
I have a query regarding employees who joined us earning less than Rs. 6,500 but are now making more than that. Another issue is if an employee earns less than Rs. 6,500 and is not interested in PF contribution, can we, as a company, take a written application from the employee stating their lack of interest and relieving the employer of responsibility for any mishaps?
Kindly suggest as both of these cases are occurring in my firm.
Regards,
Kanchi
From India, Ambala
Acknowledge(0)Amend(0)
I have a query regarding employees who joined us earning less than Rs. 6,500 but are now making more than that. Another issue is if an employee earns less than Rs. 6,500 and is not interested in PF contribution, can we, as a company, take a written application from the employee stating their lack of interest and relieving the employer of responsibility for any mishaps?
Kindly suggest as both of these cases are occurring in my firm.
Regards,
Kanchi
From India, Ambala
Acknowledge(0)Amend(0)
Dear Ruchi,
Greetings for the day.
First of all, it might be known to all that the ceiling of Rs. 6500 has been increased by Rs. 15,000. The components should be Basic + DA + food conc. (if any). If an employee is earning more than Rs. 15,000 in the above-mentioned components, they are willing to opt for no contribution to EPF, but if it is less, they must opt for it. To declare not to deduct EPF, one has to fill out Form 11, which should be kept by the employer.
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(0)Amend(0)
Greetings for the day.
First of all, it might be known to all that the ceiling of Rs. 6500 has been increased by Rs. 15,000. The components should be Basic + DA + food conc. (if any). If an employee is earning more than Rs. 15,000 in the above-mentioned components, they are willing to opt for no contribution to EPF, but if it is less, they must opt for it. To declare not to deduct EPF, one has to fill out Form 11, which should be kept by the employer.
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
Acknowledge(0)Amend(0)
This post was started some five years back when the PF salary ceiling was Rs. 6,500, and it is not due to ignorance that the salary has been put as Rs. 6,500.
I would like to reiterate that, in order to be excluded from PF coverage, the employee's salary (PF qualifying salary) at the time of joining should be more than Rs. 15,000. At the same time, he should not be an existing member of PF. An existing member is one who has not withdrawn his PF accumulations when he left his previous company. Therefore, when a person who has worked in some other organization to which PF applied joins your establishment, you have to check whether he was previously covered by PF and if he has not withdrawn it. This is known by means of a declaration (please see the attachment, and the attachment given by Sumit Saxena is an old one). It is okay if he gives a false declaration that he was not a member of PF or declares that he has withdrawn his PF accumulations, etc., and on the basis of that declaration, you exempt the employee from PF in your establishment.
Madhu.T.K
From India, Kannur
Acknowledge(2)
Amend(0)
0
0
I would like to reiterate that, in order to be excluded from PF coverage, the employee's salary (PF qualifying salary) at the time of joining should be more than Rs. 15,000. At the same time, he should not be an existing member of PF. An existing member is one who has not withdrawn his PF accumulations when he left his previous company. Therefore, when a person who has worked in some other organization to which PF applied joins your establishment, you have to check whether he was previously covered by PF and if he has not withdrawn it. This is known by means of a declaration (please see the attachment, and the attachment given by Sumit Saxena is an old one). It is okay if he gives a false declaration that he was not a member of PF or declares that he has withdrawn his PF accumulations, etc., and on the basis of that declaration, you exempt the employee from PF in your establishment.
Madhu.T.K
From India, Kannur
Acknowledge(2)Amend(0)CiteHR.AI
(Fact Checked)-The information provided in the user reply is accurate and aligns with the latest rules regarding PF coverage exemptions based on qualifying salary and previous PF membership status. (1 Acknowledge point)
0
0
Is any form is available for NON DEDUCTION DECLARATION for PF by an employee.
From India, Meerut
Acknowledge(1)
Amend(0)
0
0
From India, Meerut
Acknowledge(1)Amend(0)CiteHR.AI
(Fact Checked)-The correct form for non-deduction declaration for PF is Form 11 (New) under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. (1 Acknowledge point)
0
0
Dear Madhu,
Thank you for your insight. Let me tell you, I have been browsing CiteHr for a long time and find it really useful and interesting! Your replies and solutions to queries are just wonderful.
I have a query. Though you have already made it very clear, I would cautiously like to ask with a scenario: I have a new employee who was previously employed with us in 2015 and was covered under EPF, which he already surrendered after leaving us in 2015. Now, since he has joined us today with a salary of 33,000 (BA+DA) and is above the ceiling limit, I would like to know if we are required to cover him under EPF since he was covered earlier with us (even though the account was surrendered in 2015 itself). Please help!
From India, Ahmadabad
Acknowledge(0)Amend(0)
0
0
Thank you for your insight. Let me tell you, I have been browsing CiteHr for a long time and find it really useful and interesting! Your replies and solutions to queries are just wonderful.
I have a query. Though you have already made it very clear, I would cautiously like to ask with a scenario: I have a new employee who was previously employed with us in 2015 and was covered under EPF, which he already surrendered after leaving us in 2015. Now, since he has joined us today with a salary of 33,000 (BA+DA) and is above the ceiling limit, I would like to know if we are required to cover him under EPF since he was covered earlier with us (even though the account was surrendered in 2015 itself). Please help!
From India, Ahmadabad
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The employee should be covered under EPF as the previous account surrender doesn't exempt him. His current salary exceeds the threshold. Seek advice from EPF authorities for clarity. (1 Acknowledge point)
0
0
It is true that he was a member of PF when he was with you. However, since he has withdrawn his PF accumulations, he is not an existing member, and as such, he can be excluded as his salary at the time of joining or rejoining your company is more than Rs 15,000. There is no illegality in it.
Madhu.T.K
From India, Kannur
Acknowledge(2)Amend(0)
Madhu.T.K
From India, Kannur
Acknowledge(2)Amend(0)
Dear Madhu,
Thank you very much for your reply! A little clarification is needed. In Form 11, it asks for earlier EPF membership details, which need to be filled since he was a member of EPF earlier. This will lead to the linking of his UAN, and the employer will have to enroll him for EPF membership. How should I go about filling out Form 11, considering he was our employee previously when he was covered? We will not be able to accept false declarations.
Kindly suggest how I should proceed in his case, or if there is any clarification or notification regarding the same that I can present to my management.
Thanks,
Abhishek
From India, Ahmadabad
Acknowledge(0)Amend(0)
Thank you very much for your reply! A little clarification is needed. In Form 11, it asks for earlier EPF membership details, which need to be filled since he was a member of EPF earlier. This will lead to the linking of his UAN, and the employer will have to enroll him for EPF membership. How should I go about filling out Form 11, considering he was our employee previously when he was covered? We will not be able to accept false declarations.
Kindly suggest how I should proceed in his case, or if there is any clarification or notification regarding the same that I can present to my management.
Thanks,
Abhishek
From India, Ahmadabad
Acknowledge(0)Amend(0)
Whether earlier covered does not apply to one who has already withdrawn the PF accumulations but it applies only to an "existing member" or one who has a PF Account Number. At the same time, once he has withdrawn the PF, that number does not exist, and he will not remain as a PF member. Therefore, you can say "No" to it.
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Hi, With reference to above work , Is there any prescribed declaration format for not deduct PF from salary.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
if please share the same in this email id - hr.bhmc@gmail.com or nitinmaism@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Madhu,
I need to know if an employee earning a basic salary of Rs. 15,000/- can opt for no PF deductions. If yes, is there any declaration that needs to be submitted to the employer? Please advise as it is very urgent.
From India, Mumbai
Acknowledge(0)Amend(0)
I need to know if an employee earning a basic salary of Rs. 15,000/- can opt for no PF deductions. If yes, is there any declaration that needs to be submitted to the employer? Please advise as it is very urgent.
From India, Mumbai
Acknowledge(0)Amend(0)
An existing employee (an employee who is presently a PF member or a new employee who was a member of PF with his earlier organization and has not withdrawn the PF on his leaving that organization) cannot opt out of PF. In the case of a new employee who was not a member of PF earlier, they can be excluded from PF if their PF qualifying salary exceeds Rs 15,000. You can take a Form 11 declaration from the employee and keep it in your file.
Employees Provident Fund Organisation is experimenting with framing forms, so you can expect changes in the forms every week, or even a form created today may disappear tomorrow. It is surprising that the people in the PF office are distributing the old forms (Form 19 and 10C, which have been replaced by Aadhar-linked single forms) and they do not know about the new forms available on their website! In the case of Form 11, the latest form is the one issued in September 2017, hopefully. Please find the attachment.
From India, Kannur
Acknowledge(0)Amend(0)
0
0
Employees Provident Fund Organisation is experimenting with framing forms, so you can expect changes in the forms every week, or even a form created today may disappear tomorrow. It is surprising that the people in the PF office are distributing the old forms (Form 19 and 10C, which have been replaced by Aadhar-linked single forms) and they do not know about the new forms available on their website! In the case of Form 11, the latest form is the one issued in September 2017, hopefully. Please find the attachment.
From India, Kannur
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The information provided is correct. Thank you for the detailed explanation and guidance. (1 Acknowledge point)
0
0
If an employee is absent before and after a national holiday, and he was not present in that week, is the employee entitled to that national holiday? Please send this query along with the Labor Law section or any relevant case law.
Thank you.
Acknowledge(0)Amend(0)
0
0
Thank you.
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The employee is generally entitled to a paid holiday if they were absent before or after a national holiday. No need for a case diary. (1 Acknowledge point)
0
0
Is there any form which we can get signed by the employees in case they wish to opt out of pf deduction. If yes then please help with the format.
From India, Noida
Acknowledge(0)Amend(0)
0
0
From India, Noida
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The form for opting out of PF deduction is Form 11 provided by EPFO. It is mandatory to submit this form to opt out of PF contribution. (1 Acknowledge point)
0
0
There is no such form by which you can exempt your employees from contributing to PF. Yes, if the salary (PF contributing salary) of a new employee is more than Rs 15,000 (as of now), you can exclude him. Certain provisions of law are mandatory provisions, and being an employer, you are not expected to deviate from it. PF is a good investment, and this will be the only savings available to your workers when they retire. Therefore, if you really want to make your employees happy, you should encourage these kinds of investments. Don't take it as a cost alone.
From India, Kannur
Acknowledge(1)Amend(0)
From India, Kannur
Acknowledge(1)Amend(0)
Which is the salary on which you deduct PF of other employees? The same should be the PF qualifying salary for deciding exclusion as well. If you contribute PF on gross salary less only HRA, then consider that. However, if you contribute PF only on Basic salary, then take the basic salary into account for deciding whether an employee can be excluded or not.
From India, Kannur
Acknowledge(1)
Amend(0)
From India, Kannur
Acknowledge(1)Amend(0)
Hi,
If anyone has a salary below 15K and is eligible for PF contribution but doesn't want to pay any amount of PF from their salary because they are the single source of income, then which form can be used to fill by them? Guide me.
Regards,
Vikas
From India, Noida
Acknowledge(0)Amend(0)
If anyone has a salary below 15K and is eligible for PF contribution but doesn't want to pay any amount of PF from their salary because they are the single source of income, then which form can be used to fill by them? Guide me.
Regards,
Vikas
From India, Noida
Acknowledge(0)Amend(0)
If he wants employment, he should contribute to PF. There is no way that an employee whose salary is below 15000 can be excluded from PF
From India, Kannur
Acknowledge(0)Amend(0)
From India, Kannur
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Calcu. pf Emp.eps.epf sample sheet for HR site..xls
CiteHR.AI
(Fact Checked)-[The user's reply contains accurate information regarding the eligibility criteria for PF coverage, the requirement for Form 11 declaration, and the clarification on PF pensioners. The explanation provided aligns with the current PF rules and regulations.] (1 Acknowledge point)