A company has 30 employees with a minimum salary of Rs. 25,000 per month for all. It is registered under the EPF Act since the limit of 20 employees is crossed. However, it does not contribute anything towards PF because the salary of all employees is more than the limit of Rs. 15,000 per month. Is there any compliance default here? If not, can you please provide some case law in this regard?
Please share your views.
From India, Bengaluru
Acknowledge(0)
Amend(0)
1Please share your views.
From India, Bengaluru
Acknowledge(0)Amend(0)
Dear friend,
You need not be covered in EPF as per the EPF Act due to salary limitations. Even though you can only deduct up to 15000, the employer contribution is to be paid by the PMRPY scheme. Therefore, management does not need to pay. If you cover them in PF, 1800+1800 = 3600 will be the saving for them. It is also exempted from TDS. So, you can split your Basic and DA and other allowances. Basic should not exceed 15000/-
Regards,
Pandiyan
From India, Madurai
Acknowledge(0)Amend(0)
You need not be covered in EPF as per the EPF Act due to salary limitations. Even though you can only deduct up to 15000, the employer contribution is to be paid by the PMRPY scheme. Therefore, management does not need to pay. If you cover them in PF, 1800+1800 = 3600 will be the saving for them. It is also exempted from TDS. So, you can split your Basic and DA and other allowances. Basic should not exceed 15000/-
Regards,
Pandiyan
From India, Madurai
Acknowledge(0)Amend(0)
Keep Form 11 of employees in your records, along with their undertaking that they have never been an account holder of EPF, do not have a UAN, and are not willing to be a member of EPF.
An employer must offer EPF in a uniform way to all employees, regardless of their wage amount. It is now up to the employee to declare that they have never had any UAN and do not want to be enrolled under EPF.
In simple terms, once a UAN is generated for any employee, they cannot be excluded unless they reach the age of 58 or older.
Acknowledge(0)Amend(0)
An employer must offer EPF in a uniform way to all employees, regardless of their wage amount. It is now up to the employee to declare that they have never had any UAN and do not want to be enrolled under EPF.
In simple terms, once a UAN is generated for any employee, they cannot be excluded unless they reach the age of 58 or older.
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
EPF Act.ppt