Hello, In my organisation there are many new recruits who have salaries of more than 15000/- and do not want any deduction or contribution to the PF. I have heard that there is a provision by which these employees can be excluded. Can the experienced members please guide us on these provisions and the procedure?
From India, Jalgaon
From India, Jalgaon
As far as PF deduction is concerned, you can follow the following methods:
a) If any of the first time employee (entry level after education), and if their basic is more than Rs.15,000/- per month, you can exempt them from covering under the PF Act. Instead, you can include the Employer Contribution value to their CTC.
b) If the existing employees whose basic is higher than Rs.15,000/- per month, you can restrict the PF deduction up to Rs.15K which is mandatory.
c) When you consider annual increment, you can slightly increase the HRA component if it is very low right now, so that you can exempt HRA from PF coverage. This will be beneficial only if the basic is less than Rs.15K.
Otherwise, in the normal course, you cant do anything on covering employees under the clutches of Provident Fund.
Regards,
From India, Madras
11a) If any of the first time employee (entry level after education), and if their basic is more than Rs.15,000/- per month, you can exempt them from covering under the PF Act. Instead, you can include the Employer Contribution value to their CTC.
b) If the existing employees whose basic is higher than Rs.15,000/- per month, you can restrict the PF deduction up to Rs.15K which is mandatory.
c) When you consider annual increment, you can slightly increase the HRA component if it is very low right now, so that you can exempt HRA from PF coverage. This will be beneficial only if the basic is less than Rs.15K.
Otherwise, in the normal course, you cant do anything on covering employees under the clutches of Provident Fund.
Regards,
From India, Madras
When a new employee joins your organisation you should collect form 11 in support that he was not covered by EPF earlier. In the absence of form 11, you cannot ensure that in future the same employee will not come with a demand that he should be covered by PF since he was earlier covered under EPF. Therefore, to be of safer side, collect form 11 which will declare whether he was a member of EPF in his previous employment. If he declares that he was a member of PF earlier then no way you should exclude him from PF and on the other hand, if he declares that he had no PF, then you can exclude him from PF provided his PF qualifying salary exceeds Rs 15000.
From India, Kannur
From India, Kannur
If the monthly gross salary ( PF Gross ) excluding HRA and any other productivity linked payment ( Production incentive etc.) is as on date 15k or less based on declaration by the employee through Form-11 must be covered under (member ) of EPFO. If he was not member of EPFO earlier and joining with PF Gross more than 15 K or was member of EPFO but left the service and again joining with some gap at salary level more than 15K or after attaining the age 58 years settled EPF & EPS is considered as excluded employee. Excluded employees may be out of purview of EPFO but voluntarily they may be member.
No employee or employer has right to exclude any employee from the coverage of EPFO if he/she fulfill above coverage conditions.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
No employee or employer has right to exclude any employee from the coverage of EPFO if he/she fulfill above coverage conditions.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
skb@usdhrs.in
www.usdhrs.in
From India, New Delhi
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls