PF Is optional for the freshers who have never had a PF account is past, In case you had a PF account it becomes mandatory for you to go ahead with PF Investment.
From India, Gurgaon
From India, Gurgaon
Jay. Do you think that for a fresher with basic of less than Rs6500/- pm ,PF is optional.No it is not optional. Varghese Mathew
From India, Thiruvananthapuram
912From India, Thiruvananthapuram
yes It Is, However its not on docs but many reputed companies are offerings this. You are correct no doubt.
From India, Gurgaon
From India, Gurgaon
Hi All,
As per EPF act, every employee should be a member in PF and should be eligible for EPF benefits and should contribute to the EPF fund. an employee who does not want EPF benefit should have opted at the beginning of his career and that should be intimated to the employer and EPF office in a prescribed form i.e.Form 11. By that time his basic wage must be above 6500/-.
Once an employee has become a member to EPF he should be a member till the superannuation. Irrespective of his job switching and salary enhancements.
However it is beneficiary to the member himself to have savings with an impressive interest rate and with out any tax imposition on certain amount. Try to convince employee by explaining all the EPF benefits.
Regards
Ravichandra
From India, Hyderabad
As per EPF act, every employee should be a member in PF and should be eligible for EPF benefits and should contribute to the EPF fund. an employee who does not want EPF benefit should have opted at the beginning of his career and that should be intimated to the employer and EPF office in a prescribed form i.e.Form 11. By that time his basic wage must be above 6500/-.
Once an employee has become a member to EPF he should be a member till the superannuation. Irrespective of his job switching and salary enhancements.
However it is beneficiary to the member himself to have savings with an impressive interest rate and with out any tax imposition on certain amount. Try to convince employee by explaining all the EPF benefits.
Regards
Ravichandra
From India, Hyderabad
Hi,
Thanks for your suggestions.
But here i am facing new issue, kindly help me out.
Our organization is one year old. Till now we didn't make any registration in PF & ESI. Recently we had reached to 20 Employees.We are in the process of PF & ESI registration. But Most of the people having the basic more than 6500/-that employees are not interested to take PF & ESI benefits. If we exempt that employees then remaining employees will be around 10 members.
In this situation whether i have to make PF registration or not, is it a mandatory.
From India, Tirupati
Thanks for your suggestions.
But here i am facing new issue, kindly help me out.
Our organization is one year old. Till now we didn't make any registration in PF & ESI. Recently we had reached to 20 Employees.We are in the process of PF & ESI registration. But Most of the people having the basic more than 6500/-that employees are not interested to take PF & ESI benefits. If we exempt that employees then remaining employees will be around 10 members.
In this situation whether i have to make PF registration or not, is it a mandatory.
From India, Tirupati
I see that the discussion has gone all over the place.
The rules for whether PF is compulsory can be summaries as below :
1. For all new employees, if their salary is less than Rs. 6500 per month, then PF is compulsory
2. For any new employee with a salary above that Rs. 6500 per month, who does not have an existing PF account, can opt out of PF by filling Form 11
3. An existing employee can not opt out of PF once he has a PF account.
You need to follow the rule based on what the starting salary of the person was.
And salary is as defined under the PF Act - Basic + DA
From India, Mumbai
The rules for whether PF is compulsory can be summaries as below :
1. For all new employees, if their salary is less than Rs. 6500 per month, then PF is compulsory
2. For any new employee with a salary above that Rs. 6500 per month, who does not have an existing PF account, can opt out of PF by filling Form 11
3. An existing employee can not opt out of PF once he has a PF account.
You need to follow the rule based on what the starting salary of the person was.
And salary is as defined under the PF Act - Basic + DA
From India, Mumbai
For freshers, who take up employment first time, it is compulsory to become PF members.
Now that ceiling of PF is likely to be enhanced. This was also shared by Minister of State for Labour
in the previous Ministry.
Those who already were members with PF and in the current employment drawing more salary
they have the option to become PF members by contributing to PF at the stipulated percentage
of the ceiling limit.
Those who want to invest in PF more, they are also free to contribute PF as VPF contribution.
Thanks
R K Nair
From India, Aizawl
Now that ceiling of PF is likely to be enhanced. This was also shared by Minister of State for Labour
in the previous Ministry.
Those who already were members with PF and in the current employment drawing more salary
they have the option to become PF members by contributing to PF at the stipulated percentage
of the ceiling limit.
Those who want to invest in PF more, they are also free to contribute PF as VPF contribution.
Thanks
R K Nair
From India, Aizawl
You have to do PF registration.
You can exempt employees who have Basic+DA+ cash value of food provided > 6500.
as per PF act you have to register for EPF if you have 20 or more employees. it is better to start registration before you reach 20 employees strength on your muster roll. it is not like if you have contributing members 20 or less. total figure if 20 (Exempted+ not exempted) then PF registration is must.
From India, Mumbai
You can exempt employees who have Basic+DA+ cash value of food provided > 6500.
as per PF act you have to register for EPF if you have 20 or more employees. it is better to start registration before you reach 20 employees strength on your muster roll. it is not like if you have contributing members 20 or less. total figure if 20 (Exempted+ not exempted) then PF registration is must.
From India, Mumbai
In that is the case where will the amount goes from employer side as the employer supposed to contribute the amount with the employee contribution? Could you please help?
From India, Bangalore
From India, Bangalore
Hi,
As per my knowledge, PF is compulsory for all the employees in an organisation, if their strength is more than 20.
The wage limit is 6500/- and above this is an option for management.
We can not exclude PF, if you want to take exclusion then you have to register your organisation as PF exempted organisation and to do so your organisation should have your own PF scheme. This scheme should take care of all the benefits that are available in PF scheme, then only en employee can take en exclusion vide Form-11.
The other case where an employee can be excluded from PF is, the emolyee should already be enjoying the PF scheme benefits.
Pl do correct me, if I'm wrrong in any of the above statements.
Kind Regards
Shreyas
From India, Bangalore
As per my knowledge, PF is compulsory for all the employees in an organisation, if their strength is more than 20.
The wage limit is 6500/- and above this is an option for management.
We can not exclude PF, if you want to take exclusion then you have to register your organisation as PF exempted organisation and to do so your organisation should have your own PF scheme. This scheme should take care of all the benefits that are available in PF scheme, then only en employee can take en exclusion vide Form-11.
The other case where an employee can be excluded from PF is, the emolyee should already be enjoying the PF scheme benefits.
Pl do correct me, if I'm wrrong in any of the above statements.
Kind Regards
Shreyas
From India, Bangalore
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls