Hello, Recently we have enrolled some of the employees in the PF. Earlier these employees were given consolidated payment and worked as consultants. Now these people want the PF amount not to be deducted and asking us to add it to the salary. Employer contribution is also not required by these people. To summarise, they want the same salary when they observed as a consultant
Please guide us on how to handle this case so that no statutory issue arises
From India, Coimbatore
Please guide us on how to handle this case so that no statutory issue arises
From India, Coimbatore
If they were covered under the PF Act 1952, there is no escape from continuing coverage as per statute. If they were not covered at all, and they are drawing salary more than the threshold limit of coverage, (Rs. 15,000/- pm now) then there is no need. But you will have to inform EPFO so.
Otherwise, there will be issues of non-compliance and the penalties are financial as well as imprisonment.
From India, Mumbai
1534Otherwise, there will be issues of non-compliance and the penalties are financial as well as imprisonment.
From India, Mumbai
If an employee wishes to opt out of EPF, they need to fill out Form 11 when they join their first job. They need to furnish a letter addressing their employer in which they state that they wish to opt-out of the scheme. But, if the employee makes even a single EPF contribution, this option ceases to exist.
From India, Bhopal
From India, Bhopal
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Coverage of construction & contact workers under PF 22.1.2015.pdf
Coverage of Construction Labour under PF letter of 15 O-page-001.jpg