Dear Shenbarajan,
An employee will be granted exemption from the EPF scheme as per Section 27 of the Employees Provident Funds Scheme, 1952, which is mentioned below:
27. Exemption of an employee
(1) A Commissioner may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of this Scheme an employee to whom the Scheme applies on receipt of application in Form I from such an employee:
Provided that such an employee is entitled to benefits in the nature of Provident Fund, gratuity or old age pension according to the rules of the factory or other establishment and such benefits separately or jointly are on the whole not less favourable than the benefits provided under the Act and the Scheme.
Please see that the second paragraph to Section 27 (1) mentions that the employee should be entitled to benefits by the employer which are equal or better than the benefits provided under the EPF Act.
An exemption will not be granted just because the employee doesn't want to continue the same,
Regards
Arun
From India, Kochi
7An employee will be granted exemption from the EPF scheme as per Section 27 of the Employees Provident Funds Scheme, 1952, which is mentioned below:
27. Exemption of an employee
(1) A Commissioner may by order and subject to such conditions as may be specified in the order exempt from the operation of all or any of the provisions of this Scheme an employee to whom the Scheme applies on receipt of application in Form I from such an employee:
Provided that such an employee is entitled to benefits in the nature of Provident Fund, gratuity or old age pension according to the rules of the factory or other establishment and such benefits separately or jointly are on the whole not less favourable than the benefits provided under the Act and the Scheme.
Please see that the second paragraph to Section 27 (1) mentions that the employee should be entitled to benefits by the employer which are equal or better than the benefits provided under the EPF Act.
An exemption will not be granted just because the employee doesn't want to continue the same,
Regards
Arun
From India, Kochi
1. EPF is calculated on the Basic + DA while ESI is calculated on the Gross.
2. Any component, which totals to sum for calculating EPF / ESI, if varies from month to month that EPF and ESI will differs.
3. The All India Consumer Index for Industry Workers (AICI-IW) varies each month and it is the basis for calculating DA. For example, for Industry Workers it was 197 in December 2011 and the DA will be corresponding to this value. In January 2012, it normally be more - though, sometimes it may be lesser.
4. Since the DA is one of the components of determining EPF (Basic+DA) and ESI (Gross), this will be varying each month. Many Industries go for monthly DA variations.
5. As far as the Government is concerned, they calculated the average for 6 months (Jan-Jun and Jul-Dec) and announced the bi-annual DA.
Rajusiachen
From India, Coimbatore
2. Any component, which totals to sum for calculating EPF / ESI, if varies from month to month that EPF and ESI will differs.
3. The All India Consumer Index for Industry Workers (AICI-IW) varies each month and it is the basis for calculating DA. For example, for Industry Workers it was 197 in December 2011 and the DA will be corresponding to this value. In January 2012, it normally be more - though, sometimes it may be lesser.
4. Since the DA is one of the components of determining EPF (Basic+DA) and ESI (Gross), this will be varying each month. Many Industries go for monthly DA variations.
5. As far as the Government is concerned, they calculated the average for 6 months (Jan-Jun and Jul-Dec) and announced the bi-annual DA.
Rajusiachen
From India, Coimbatore
I think yes if he wants not to continue with the PF and he has to fill Form 11. Correct me if i am wrong , as most of the times it happens when employee works for more than 3 or 4 yrs. pl confirm seniors.
From India, Delhi
From India, Delhi
Hi Ruby,
are informed that if employee was the member of pf in previous company then honostly he will fil the form 11 and his pf membership will contonue with present company either his basic-da(pf salry whatevr) more than rs. 6500/- he will cover under pf upto rs 6500/- in present company. If he joines as fresher with present company and fill form 11 also but pf salry is 6500/- and or less and pf aaplicability is there in present company than he will come under ambit of pf applicabilty. If excluded from scheme than form 11 will work.
regards.
accord/services (Labour Laws Consultancy), noida
From India, Delhi
are informed that if employee was the member of pf in previous company then honostly he will fil the form 11 and his pf membership will contonue with present company either his basic-da(pf salry whatevr) more than rs. 6500/- he will cover under pf upto rs 6500/- in present company. If he joines as fresher with present company and fill form 11 also but pf salry is 6500/- and or less and pf aaplicability is there in present company than he will come under ambit of pf applicabilty. If excluded from scheme than form 11 will work.
regards.
accord/services (Labour Laws Consultancy), noida
From India, Delhi
Dear Ruby
Form No.11 ( Eleven) under EPF scheme pertains to information provided by an employee while joining a new employer, about his previous previous employments with name and address of employers along with duration of service and whether he was previously a member of EPF scheme or not. This form is to be maintained by the employer.
Please note that exemption from the EPF/Pension/EDLI scheme can be granted to an employee only if he is getting equal or more favourable benefits from the employer he/she is working with than from the EPF authorities. Exemptions will not be granted just because he/she does not wish to continue to be a member..
Regards
Arun
From India, Kochi
Form No.11 ( Eleven) under EPF scheme pertains to information provided by an employee while joining a new employer, about his previous previous employments with name and address of employers along with duration of service and whether he was previously a member of EPF scheme or not. This form is to be maintained by the employer.
Please note that exemption from the EPF/Pension/EDLI scheme can be granted to an employee only if he is getting equal or more favourable benefits from the employer he/she is working with than from the EPF authorities. Exemptions will not be granted just because he/she does not wish to continue to be a member..
Regards
Arun
From India, Kochi
Dear Arun & Sharmard
sorry i am new to the compliance of HR but i have noticed so many employee and employer does not want to come into this matter and making a way out to just filling form 11 and not giving the past employment details of employee in this form in case of new joining.
I think that also can be possible to withdrawn or voluntree getting out from PF as now a normally employee has to bear total pf (employee and employer) contribution as part of ctc so he does not want to block his money. pl guide then how can we make the balance where compliance and employee both can be managed.
Thanks & Regards
From India, Delhi
sorry i am new to the compliance of HR but i have noticed so many employee and employer does not want to come into this matter and making a way out to just filling form 11 and not giving the past employment details of employee in this form in case of new joining.
I think that also can be possible to withdrawn or voluntree getting out from PF as now a normally employee has to bear total pf (employee and employer) contribution as part of ctc so he does not want to block his money. pl guide then how can we make the balance where compliance and employee both can be managed.
Thanks & Regards
From India, Delhi
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