Dear Sir, I have a question regarding PF Deduction: One employee previously worked for another organization and had a UAN number. After some time, they left the job and withdrew the PF. Subsequently, they joined another organization but do not wish to have PF deductions. They have submitted a letter requesting a waiver of PF deductions. Is this legally acceptable or considered improper practice? If it is correct, please share the relevant section and clause details. If it is incorrect, please advise on the appropriate course of action.
Additionally, in the case of a new employee who has never worked elsewhere and does not possess a UAN number, can we consider a PF waiver option based on a written letter from them?
From India, Bengaluru
Additionally, in the case of a new employee who has never worked elsewhere and does not possess a UAN number, can we consider a PF waiver option based on a written letter from them?
From India, Bengaluru
If the basic salary (PF qualifying salary) of the new employee who had never been a PF member earlier is more than Rs 15000, then he can be excluded from PF coverage. You may collect from 11 in which he will declare that he had no PF earlier.
In the case of an existing member of PF, he has to give the declaration in form 11 (same as above) declaring that he is not an existing member of PF. Normally, even after withdrawing the PF, his Universal Account Number would be active, and if you just exclude him, there is a chance that he will approach you with a request that he needs PF, because it is a tax saving investment. At that time, in order to protect you from legal issues, you should have a declaration in the prescribed form that he did not have a UAN. If the employee is ready to give a declaration that he does not have a UAN, you can exclude him from PF. BUT, if his PF qualifying salary is not more than Rs 15000, he should be given PF even if he declares that he does not have a UAN.
The form 11 is attached.
From India, Kannur
4238In the case of an existing member of PF, he has to give the declaration in form 11 (same as above) declaring that he is not an existing member of PF. Normally, even after withdrawing the PF, his Universal Account Number would be active, and if you just exclude him, there is a chance that he will approach you with a request that he needs PF, because it is a tax saving investment. At that time, in order to protect you from legal issues, you should have a declaration in the prescribed form that he did not have a UAN. If the employee is ready to give a declaration that he does not have a UAN, you can exclude him from PF. BUT, if his PF qualifying salary is not more than Rs 15000, he should be given PF even if he declares that he does not have a UAN.
The form 11 is attached.
From India, Kannur
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls