Dear seniors;
My query is that if an employee who is a member of PF moves to a new company where his basic salary gets more than 6500, is it mandatory for the new company to continue deduct his pf or not ?
Regards
Bipin
From India, Haryana
My query is that if an employee who is a member of PF moves to a new company where his basic salary gets more than 6500, is it mandatory for the new company to continue deduct his pf or not ?
Regards
Bipin
From India, Haryana
Dear Mr. Bipin, This is totally descrition of employee if he/she require to get deduct the same, company will go for as per his/her descrition. Rgds
From India, Mumbai
51From India, Mumbai
No in my opinion. It would have been a different case though if salary would have risen in the same organisation.
From India, New Delhi
From India, New Delhi
No.
Every company has certain salary level. Someone is contributing to PF fund in "X" company when moves to "Y" company where his salary level is more than Rs.6500/-, it is policy of the company "Y" whether he is willing to extend this benefit to him or no.
PF Act is very very clear in this respect, that whose salary is more than Rs.6500/- p.m. he is an exempted employee. Just because he was covered under PF in "X" company does not force "Y" company to extend the same benefit to him. He may be a member of PF, but both companies are separate entities.
Think the other way round. If the company "X" where there is no coverage of PF, when he is moved to"Y" company (and his salary is less than Rs.6501/-), he has to necessarily be covered under PF. Just he was not covered under PF in X company will not entitle "Y" company not to cover him under PF. It is the Law / Act that decides the eligibility criteria and not the status of employee whether he is continued member of PF or otherwise.
Therefore, the law / Act cannot enforce an employer to extend PF benefit to an employee (whatever benefit he enjoyed in the previous company) if his salary is more than Rs.6500/-. It is EMPLOYER'S DISCRETION.
Therefore in your case, HE NEED NOT BE COVERED UNDER PF, UNLESS YOU WANT TO EXTEND THIS BENEFIT TO HIM.
Balaji
From India, Madras
Every company has certain salary level. Someone is contributing to PF fund in "X" company when moves to "Y" company where his salary level is more than Rs.6500/-, it is policy of the company "Y" whether he is willing to extend this benefit to him or no.
PF Act is very very clear in this respect, that whose salary is more than Rs.6500/- p.m. he is an exempted employee. Just because he was covered under PF in "X" company does not force "Y" company to extend the same benefit to him. He may be a member of PF, but both companies are separate entities.
Think the other way round. If the company "X" where there is no coverage of PF, when he is moved to"Y" company (and his salary is less than Rs.6501/-), he has to necessarily be covered under PF. Just he was not covered under PF in X company will not entitle "Y" company not to cover him under PF. It is the Law / Act that decides the eligibility criteria and not the status of employee whether he is continued member of PF or otherwise.
Therefore, the law / Act cannot enforce an employer to extend PF benefit to an employee (whatever benefit he enjoyed in the previous company) if his salary is more than Rs.6500/-. It is EMPLOYER'S DISCRETION.
Therefore in your case, HE NEED NOT BE COVERED UNDER PF, UNLESS YOU WANT TO EXTEND THIS BENEFIT TO HIM.
Balaji
From India, Madras
Yes Mr.Bipin,
The respective employee needs to be covered under the subsequent employment, unless he has withdrawn the pf contribution from the earlier organization. This coverage can be for and upto the salary of Rs.6500/- only.
If he has withdrawn before joining the another organization, he ceases to be a member and shall become excluded employee, as such if the basic salary is more than Rs.6500/- pm, he shall not be covered under the Scheme. In this case the Company needs to ensure by taking undertaking from the employee a) he was not covered under EPF Act or b) he has withdrawn the contribution and he do not want to opt for the coverage, since his basic salary is more than Rs.6500/- p.m.
Kiran Savargaonkar
SRI Management Consultants (HR & Labour Laws), Pune
Cell NO.9822431074
From India, Pune
The respective employee needs to be covered under the subsequent employment, unless he has withdrawn the pf contribution from the earlier organization. This coverage can be for and upto the salary of Rs.6500/- only.
If he has withdrawn before joining the another organization, he ceases to be a member and shall become excluded employee, as such if the basic salary is more than Rs.6500/- pm, he shall not be covered under the Scheme. In this case the Company needs to ensure by taking undertaking from the employee a) he was not covered under EPF Act or b) he has withdrawn the contribution and he do not want to opt for the coverage, since his basic salary is more than Rs.6500/- p.m.
Kiran Savargaonkar
SRI Management Consultants (HR & Labour Laws), Pune
Cell NO.9822431074
From India, Pune
dear all,
i need all experts help regarding the pf. on how much salary the pf is deducted. i know limit for pf is 6500. but i am confused with the clause that the 12% pf deduction which is made from employee salary,should be deducted only when his/her salary is equals to or greater than 6500 or for deduction no matter whether the salary is less or equal to or greater than 6500.and suppose if an employee leaves an organization can he apply for the withdrawl of pf amount at any time or it has a specific time period of withdrawl.
if the employee has open his/her pf account through his/her company, then if he wants withdrawl of pf amount then how to apply through the company or on their own behalf.
please sort out my this query.
Thanks & Regards,
Malkeet Kaur
From India, Mumbai
i need all experts help regarding the pf. on how much salary the pf is deducted. i know limit for pf is 6500. but i am confused with the clause that the 12% pf deduction which is made from employee salary,should be deducted only when his/her salary is equals to or greater than 6500 or for deduction no matter whether the salary is less or equal to or greater than 6500.and suppose if an employee leaves an organization can he apply for the withdrawl of pf amount at any time or it has a specific time period of withdrawl.
if the employee has open his/her pf account through his/her company, then if he wants withdrawl of pf amount then how to apply through the company or on their own behalf.
please sort out my this query.
Thanks & Regards,
Malkeet Kaur
From India, Mumbai
Malkeet Kaur ji,
If a person leaves and joins another estt. which is also covered by PF Act. he/she can as well continue the PF by transfering all the Cr. in his/her a/c to the new employer estt. using the prescribed form. But it is the responsbility of the transferee estt. to see every employee is covered by PF as per the applicability. It is not advisable to withdraw the PF cr. accumulation under the previous employer. If you withdraw it will affect the EPF Pension eligibility etc. However U need not go to the previous employer for all the formalities. Yr.present employer should do the formalities. If U have ledger sheets of yr.previous PF a/c. enclose copies to the Tr.Form and submit them to yr.present employer. They should do the needful.
Even if U withdraw the previous balances, and this a/c.gets closed. There is no ban to open a new a/c. thro' the new employer.
Reg.sal. even if > Rs.6500/- U wuld be deemed to be drawing 6500/- and PF subs & contribution of employer is carried out.
Rgds.
Kumar
From India, Bangalore
If a person leaves and joins another estt. which is also covered by PF Act. he/she can as well continue the PF by transfering all the Cr. in his/her a/c to the new employer estt. using the prescribed form. But it is the responsbility of the transferee estt. to see every employee is covered by PF as per the applicability. It is not advisable to withdraw the PF cr. accumulation under the previous employer. If you withdraw it will affect the EPF Pension eligibility etc. However U need not go to the previous employer for all the formalities. Yr.present employer should do the formalities. If U have ledger sheets of yr.previous PF a/c. enclose copies to the Tr.Form and submit them to yr.present employer. They should do the needful.
Even if U withdraw the previous balances, and this a/c.gets closed. There is no ban to open a new a/c. thro' the new employer.
Reg.sal. even if > Rs.6500/- U wuld be deemed to be drawing 6500/- and PF subs & contribution of employer is carried out.
Rgds.
Kumar
From India, Bangalore
Dear Balaji,
The very purpose of form 11 is to ensure whether the new employee was earlier covered by EPF. It is the responsibility of the new establishment to give him coverage if the new employee declares in form 11 that he was earlier covered by PF and has not withdrawn the accumulations. If, on the other hand, he was not covered by PF earlier, then also he gives a declaration in the same form 11, that he was not a member of PF earlier. In that case, he need not be covered but if he declares that he was earlier covered by PF and he had not withdrawn his PF accumulations, then it is the obligation of the establishment to give coverage even if the employee's PF qualifying salary exceeds Rs 6500.
You may please go through form 11 which is attached for your ready reference.
Regards,
Madhu.T.K
From India, Kannur
The very purpose of form 11 is to ensure whether the new employee was earlier covered by EPF. It is the responsibility of the new establishment to give him coverage if the new employee declares in form 11 that he was earlier covered by PF and has not withdrawn the accumulations. If, on the other hand, he was not covered by PF earlier, then also he gives a declaration in the same form 11, that he was not a member of PF earlier. In that case, he need not be covered but if he declares that he was earlier covered by PF and he had not withdrawn his PF accumulations, then it is the obligation of the establishment to give coverage even if the employee's PF qualifying salary exceeds Rs 6500.
You may please go through form 11 which is attached for your ready reference.
Regards,
Madhu.T.K
From India, Kannur
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls