Dear All,
In our company, the management is planning to remove PF deduction for the employees whose Basic is more than 6500 pm. Please suggest whether we can remove the PF account for the employees whose PF account already exists, or if there is any alternative way to stop PF deduction.
Regards,
Mahalakshmi
From India, Bangalore
Acknowledge(0)
Amend(0)
1In our company, the management is planning to remove PF deduction for the employees whose Basic is more than 6500 pm. Please suggest whether we can remove the PF account for the employees whose PF account already exists, or if there is any alternative way to stop PF deduction.
Regards,
Mahalakshmi
From India, Bangalore
Acknowledge(0)Amend(0)
It will be difficult if you have already started this practice. Literally, you will be reducing the compensation. It requires acceptance by employees; it will generate dissatisfaction. I have not examined the legality of this so far.
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Dear Mahalakshmi,
PF contribution CANNOT be stopped once started, even when the Basic exceeds Rs. 6500/-. You can offer a new incumbent an option to opt in or opt out of PF if the Basic is more than Rs. 6500/-.
Thank you.
From India, Ahmedabad
Acknowledge(4)
Amend(0)
PF contribution CANNOT be stopped once started, even when the Basic exceeds Rs. 6500/-. You can offer a new incumbent an option to opt in or opt out of PF if the Basic is more than Rs. 6500/-.
Thank you.
From India, Ahmedabad
Acknowledge(4)Amend(0)
Dear Friends,
To the best of my knowledge, there is no option for removing PF deduction if an employee is under regular scales of pay. We can only restrict the contribution to Rs. 780/- up to the wages of Rs. 6500/- per month.
Mangai
Chennai
From India, Chennai
Acknowledge(3)Amend(0)
To the best of my knowledge, there is no option for removing PF deduction if an employee is under regular scales of pay. We can only restrict the contribution to Rs. 780/- up to the wages of Rs. 6500/- per month.
Mangai
Chennai
From India, Chennai
Acknowledge(3)Amend(0)
Thanks for your Support. Can you please help me out if the empolyee is not opting for PF then what would be the procedure. Whether Form 11 supports for the same. Regards, Mahalakshmi
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Mahalakshmi, Yes! Form 11 is mandatory for the company to keep for their records for all those employees opting out of PF.
From India, Ahmedabad
Acknowledge(2)Amend(0)
From India, Ahmedabad
Acknowledge(2)Amend(0)
Dear Mahalakshmi, There is no provision in the EPF Act to stop coverage of employees irrespective of their basic salaries once their contribution is started in the organization. Regards, Suresh
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user's reply is correct. Once an employee's PF contribution has started, it cannot be stopped based on their salary exceeding a certain threshold. (1 Acknowledge point)
0
0
No such provision for stop recovery and deposit of PF contribution to PF authorities. Once the company has started, there is no provision for the employer and employee to stop payment of EPF contribution. Only for new joiners, the exercise is optional provided their Basic + DA is more than Rs. 6500/- per month. In such cases, the employees have to submit the prescribed Form-II with all the details.
Moorti
From India, Delhi
Acknowledge(2)Amend(0)
Moorti
From India, Delhi
Acknowledge(2)Amend(0)
Dear Mahalakshmi,
PF is mandatory and is monitored by the Central Govt. through the Employees Provident Fund Act, 1952. As per the Act, the Management must pay PF based on the Basic Salary of the Employee. If the employee's salary exceeds Rs. 6,500, the management does not need to contribute the excess amount.
There is another proposal pending at the government level that suggests the Management has to pay PF for the entire salary amount, even if it exceeds Rs. 6,500.
From India, Kurnool
Acknowledge(2)Amend(0)
PF is mandatory and is monitored by the Central Govt. through the Employees Provident Fund Act, 1952. As per the Act, the Management must pay PF based on the Basic Salary of the Employee. If the employee's salary exceeds Rs. 6,500, the management does not need to contribute the excess amount.
There is another proposal pending at the government level that suggests the Management has to pay PF for the entire salary amount, even if it exceeds Rs. 6,500.
From India, Kurnool
Acknowledge(2)Amend(0)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.
Benefits under EPF act.docx
CiteHR.AI
(Fact Checked)-The employee can opt out of PF by submitting Form 11. This form is used to declare non-eligibility for PF. It is a valid procedure. (1 Acknowledge point)