I want to avoid paying EPF to employees.
Can I be sure of a) the case below and forgo EPF payment even if the Employee has a UAN?
I have these two cases:
a) The employee withdrew the full amount and had only zero balance left
b) The employee EPF has some amount, say Rs. 500, left.
From India, Meerut
Can I be sure of a) the case below and forgo EPF payment even if the Employee has a UAN?
I have these two cases:
a) The employee withdrew the full amount and had only zero balance left
b) The employee EPF has some amount, say Rs. 500, left.
From India, Meerut
An employee who has withdrawn the PF accumulations after attaining the age of superannuation only can be considered as excluded employee. Even an employee who has withdrawn the PF after a VRS will be covered by EPF if he joins another organisation subject to salary conditions as applicable. In this case the employee has an active UAN, and therefore, there is no scope for excluding the employee.
From India, Kannur
4249From India, Kannur
Dear Madhu Sir,
with due respect to what you have mentioned about the excluded employee, I would like seek your opinion on below definition of the excluded employee.
(f) "excluded employee" means—
(i) an employee who, having been a member of the Fund, withdrew the
full amount of his accumulations in the Fund under clause (a) or
(c) of sub-paragraph (1) of paragraph 69;
(ii) an employee whose pay at the time he is otherwise entitled to become
a member of the Fund, exceeds [fifteen thousand rupees] per month;
Thanks & Regards
Anil Pandey
From India, Chennai
with due respect to what you have mentioned about the excluded employee, I would like seek your opinion on below definition of the excluded employee.
(f) "excluded employee" means—
(i) an employee who, having been a member of the Fund, withdrew the
full amount of his accumulations in the Fund under clause (a) or
(c) of sub-paragraph (1) of paragraph 69;
(ii) an employee whose pay at the time he is otherwise entitled to become
a member of the Fund, exceeds [fifteen thousand rupees] per month;
Thanks & Regards
Anil Pandey
From India, Chennai
Yes. For the purpose of (1) above we need to see what is given in Scheme 69. Scheme 69 which provides for “Circumstances in which accumulations in the Fund are payable to a member” reads as follows:
69. Circumstances in which accumulations in the Fund are payable to a member
(1) A member may withdraw the full amount standing to his credit in the Fund—
(a) On retirement from service after attaining of the age of 55 years:
(b) on retirement on account of permanent and total incapacity for work ........
(c) immediately before migration from India for permanent settlement abroad [or for taking employment abroad];
(d) on termination of service in the case of mass or individual retrenchment
(dd) on termination of service under a voluntary scheme of retirement framed by the employer and the employees under a mutual agreement.....
The exclusion status is available only when the withdrawal happens due to two reasons, ie, clause (a) and (c) above. That means an employee withdrawing the PF accumulations on retirement after attaining 55 years of age (clause (a)) or an employee withdrawing PF accumulations on taking up an employment abroad (clause (c)) shall only qualify to become an excluded employee. At the same time, if the withdrawal of PF was on account of retirement after incapacity to work or if he was terminated from service and consequently withdrew the accumulations then, or he withdrew the Fund following retirement following VRS the exclusion shall not apply. Still if the withdrawal was made on or after attaining the age of superannuation or 55 years of age, the clause (a) would get satisfied and the employee would become an excluded employee. Obviously, on rejoining the conditions relating to salary (of not more than Rs 15000) will be applicable. If, at the time of rejoining, his salary exceeds Rs 15000, then he may be declared as excluded employee.
From India, Kannur
69. Circumstances in which accumulations in the Fund are payable to a member
(1) A member may withdraw the full amount standing to his credit in the Fund—
(a) On retirement from service after attaining of the age of 55 years:
(b) on retirement on account of permanent and total incapacity for work ........
(c) immediately before migration from India for permanent settlement abroad [or for taking employment abroad];
(d) on termination of service in the case of mass or individual retrenchment
(dd) on termination of service under a voluntary scheme of retirement framed by the employer and the employees under a mutual agreement.....
The exclusion status is available only when the withdrawal happens due to two reasons, ie, clause (a) and (c) above. That means an employee withdrawing the PF accumulations on retirement after attaining 55 years of age (clause (a)) or an employee withdrawing PF accumulations on taking up an employment abroad (clause (c)) shall only qualify to become an excluded employee. At the same time, if the withdrawal of PF was on account of retirement after incapacity to work or if he was terminated from service and consequently withdrew the accumulations then, or he withdrew the Fund following retirement following VRS the exclusion shall not apply. Still if the withdrawal was made on or after attaining the age of superannuation or 55 years of age, the clause (a) would get satisfied and the employee would become an excluded employee. Obviously, on rejoining the conditions relating to salary (of not more than Rs 15000) will be applicable. If, at the time of rejoining, his salary exceeds Rs 15000, then he may be declared as excluded employee.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
EPF Form ASR For Represent Payment.pdf
EPF Challan Payment Details.doc