At the time of joining a new company, an employee\'s basic salary is fixed at Rs. 8000/-. Can the employer deny PF to the employee stating the reason, that the basic salary is above 6500/- which is the ceiling fixed for PF deduction ?
From India, Kochi
4From India, Kochi
If the employee is already a member of P.F Scheme in his pat employment, he is entitled to contnue his memebrship and therefore an employer is required to obtain declaration in Form 11 from an employee joining an establsihmment. Otherwise he becomes an excluded employee and cannot contribute the scheme.However, the P.F Scheme permits any employee to become member of the scheme if joint request is made by him and the empoyer to the P.F Commissioner who can allow him to be a member of the Scheme.
B.Saikumar
HR & labour Law advsior
Mumbai
From India, Mumbai
B.Saikumar
HR & labour Law advsior
Mumbai
From India, Mumbai
Hi. As mr. Sai said if any new employee joins and if he had PF benefits in earlier organisation then he/she is eligible for PF contribution. If there was no PF benefit in the earlier organisation then he/she shall be exempted.
From India, Bangalore
From India, Bangalore
If an employee has already become the member of the EPF then even if his salary is above 6500 then he has to continue as the member of the EPf even if he does not want’s to.
From India, Kochi
From India, Kochi
Dear All,
Please find attached, the court order from the High court of Chandigarh on PF Contributions by employers on the "Basic" salary.
Hope, this would be add value to your academic interests.
Thanks & Regards,
Swapna Sarith.
From India, Kochi
Please find attached, the court order from the High court of Chandigarh on PF Contributions by employers on the "Basic" salary.
Hope, this would be add value to your academic interests.
Thanks & Regards,
Swapna Sarith.
From India, Kochi
Dear Swapna,
Mostly smaller companies and family runned companies take this as a tool for their benefit. but it is not a right practice.
This can be done only on the cases as below.
1. A fresher who joins with a basic salary > 6500, he can be exempted from PF.
2. An employee who has not opted for PF in his previous employment.
3. An employee who has left previous organisation and withdrawn his PF amount and joined another company.(Mostly in case of break in service)
For above cases Form 11 has to be signed from the employee for future inspection.
Other than this an employee who is already a member of EPF in previous employment cannot be exempted from EPF even he gets basic salary above Rs.6500/-. He can be restricted to pay Rs. 780/-(12% of Rs.6500).
From India, Mumbai
Mostly smaller companies and family runned companies take this as a tool for their benefit. but it is not a right practice.
This can be done only on the cases as below.
1. A fresher who joins with a basic salary > 6500, he can be exempted from PF.
2. An employee who has not opted for PF in his previous employment.
3. An employee who has left previous organisation and withdrawn his PF amount and joined another company.(Mostly in case of break in service)
For above cases Form 11 has to be signed from the employee for future inspection.
Other than this an employee who is already a member of EPF in previous employment cannot be exempted from EPF even he gets basic salary above Rs.6500/-. He can be restricted to pay Rs. 780/-(12% of Rs.6500).
From India, Mumbai
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf