dear members, I want to know what is the applicability for an employee who was drawing salary of (as per Pf act ) say Rs.6400/-,(both employee and employer contribute for PF @12% on salary) and on getting annual increment the salary of the particular employee becomes 7200/- wef 1st of april of the new financial year . whether the employee continues to be PF member and whether the employer & employee should continue to contribute for PF(12%). if the contribution to continue till how long it should be done or from the day the employee crosses the 6500/- salary limit his membership comes to end and the contibution can be stopped. pls clarify urgently. regards, balu
From India, Coimbatore
From India, Coimbatore
If the employee's revised salary is Rs.7200/- even then it becomes obligatory as the employee had joined the company at 6400 basic. But if someother employee had joined at Rs. 7200/- starting basic then it is not obligatory for the company to give PF on 7200/-, the company may consider 6500/- for the PF.
From India, Delhi
14From India, Delhi
thanks for your opinion. also pls let us know how long this obligation of contribution continues and what happens if the employee doesn't want contribute once his salary crosses beyond the pf slab rate of 6500/-. pls clarify regards, balu
From India, Coimbatore
From India, Coimbatore
pls let us know the form no...., so that both employer & employee are out of the pf obligation
From India, Coimbatore
From India, Coimbatore
ur view is different from Ms.Rekha - pls let us know the correct position for taking decision on this issue.
From India, Coimbatore
From India, Coimbatore
HI, If an employee joins the PF with the salary as mentioned by you & when he exceeds the limit the employee cannot with drawn from PF contributions, as the PF Act it says once the contribution starts coming in from the individual it can be stopped, only on resignation or death of the indidual it can be withdrawn. IF an employee joins with higher basic salary of 6500> above before contributing use form no 11 which will be available in PF office only, with the use of this form the employee can opt out of PF contribution. Regards Rajeev
From India, Bangalore
From India, Bangalore
It is mandatory for an employee whose pay (basic + DA) is less than Rs 6500 to be a member of EPF. Once an employee is covered, he cannot be out of coverage whatever be his salary. This means that by increasing the salary to Rs 7200, an employee cannot opt out from EPF, but he will continue to be covered so long as he is within the establishment. But the case of ESI is different. When salary of an insured employee exceeds Rs 10000, he will become out of coverage but from the next contribution period only. As such, if the salary goes up in Mat, then he has to contribute till the contribution period ends on 30th Sept. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
We came across that PF is applicable to the firm having minimum 20 workers. Previously it is for 10 workers. Whether the information received is correct?
Hi Rajesh, Till now it continues to be 20 for companies like IT/ITES etc. That 10 is applicable to other biz activities without using power. As per the parliament proceedings, there is a likelyhood that the existing ceiling of 20 may come down to 10 in the next half year. Let's wait for the official notification. Regards, Chandru
From India, Madras
From India, Madras
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PF applicability.p df