Hi Rohit,
EPF and NPS are two different schemes and you cannot be transfer funds between them. EPF is maintained by Employer and NPS is a Self Financed Fund.
Regarding Salary above 6500, please note that cap for 6500 is for the contribution amount from the employer. i.e. the employer is not liable to pay to your PF fund more than 12% of 6500. But an employee can on "Voluntary Basis" pay more than 12%. Insist with your HR that you have an PF account and as such you will like to continue the same.
One more note that Transfer of PF from one company to other was a cumbersome process, but I guess EPFO has now made it available online. Do check on their website
Now, Your company is following what most companies in India do is to place the basic at higher side and get an excuse not to pay the PF. I know, you will have difficulty in this and HR guy who is speaking to you is not aware of the Legal facts, which your MD/CEO of company is fully aware of that its their obligation to continue your PF if you request. It is just that they do not want to get into the PF submission and the connected bureaucracy.
Just for your information, companies who do not wish to have PF usually will get it in writing from all employees that they do not wish to subscribe for PF.
My best advice is to get few more employees in writing to company to include them in PF. Here are some excellent writeup from our people who I follow . Read them and also share with your friends and colleagues.
Anand's Blog: All Your Questions about Employee Provident Fund - Answered!!!
Anand's Blog: Employee Provident Fund - Demystified
I did hear from my resources that Government might soon change the employer contribution and definition of Basic salary and that PF might be made compulsory for all employers. Its a good news to all employees and I am waiting when this will happen. Here is a link for your eyes on what I mentioned here.
New PF contribution rule may reduce your take home salary | Wealth18.com
In short, I wish all young worker's between age of 18 to 32, do not let go the PF options while negotiating the salary. You will take home would be less , but in your golden age when you retire, you will see the fruits.
Wish you good luck.
Ukmitra
From Saudi Arabia, Riyadh
296EPF and NPS are two different schemes and you cannot be transfer funds between them. EPF is maintained by Employer and NPS is a Self Financed Fund.
Regarding Salary above 6500, please note that cap for 6500 is for the contribution amount from the employer. i.e. the employer is not liable to pay to your PF fund more than 12% of 6500. But an employee can on "Voluntary Basis" pay more than 12%. Insist with your HR that you have an PF account and as such you will like to continue the same.
One more note that Transfer of PF from one company to other was a cumbersome process, but I guess EPFO has now made it available online. Do check on their website
Now, Your company is following what most companies in India do is to place the basic at higher side and get an excuse not to pay the PF. I know, you will have difficulty in this and HR guy who is speaking to you is not aware of the Legal facts, which your MD/CEO of company is fully aware of that its their obligation to continue your PF if you request. It is just that they do not want to get into the PF submission and the connected bureaucracy.
Just for your information, companies who do not wish to have PF usually will get it in writing from all employees that they do not wish to subscribe for PF.
My best advice is to get few more employees in writing to company to include them in PF. Here are some excellent writeup from our people who I follow . Read them and also share with your friends and colleagues.
Anand's Blog: All Your Questions about Employee Provident Fund - Answered!!!
Anand's Blog: Employee Provident Fund - Demystified
I did hear from my resources that Government might soon change the employer contribution and definition of Basic salary and that PF might be made compulsory for all employers. Its a good news to all employees and I am waiting when this will happen. Here is a link for your eyes on what I mentioned here.
New PF contribution rule may reduce your take home salary | Wealth18.com
In short, I wish all young worker's between age of 18 to 32, do not let go the PF options while negotiating the salary. You will take home would be less , but in your golden age when you retire, you will see the fruits.
Wish you good luck.
Ukmitra
From Saudi Arabia, Riyadh
As I understand your Employer is not willing to contribute the Employers PF Portion would suggest you can Invest your Savings into Public Provident Fund (PPF), You will be entitled for Sec 80C if applicable.
In PPF only your contribution is applicable & you can take advances as well in future date. Moreover would recommend if you want you can withdraw money from old PF account & deposit it in PPF A/C.
After all objective of savings for our future needs is important where PPF is a typical Retirement Product.
Regards.,
RAVI.
In PPF only your contribution is applicable & you can take advances as well in future date. Moreover would recommend if you want you can withdraw money from old PF account & deposit it in PPF A/C.
After all objective of savings for our future needs is important where PPF is a typical Retirement Product.
Regards.,
RAVI.
Seems to be a logical answer, especially one should know that in EPF, even the Govt. pays 1.16% for the pension fund, which is not available in any other scheme. The rate of interest also till now has been good. So as suggested by Sh Mitra don't let your EPF go.
[QUOTE=ukmitra;2079084]
Hi Rohit,
EPF and NPS are two different schemes and you cannot be transfer funds between them. EPF is maintained by Employer and NPS is a Self Financed Fund.
Regarding Salary above 6500, please note that cap for 6500 is for the contribution amount from the employer. i.e. the employer is not liable to pay to your PF fund more than 12% of 6500. But an employee can on "Voluntary Basis" pay more than 12%. Insist with your HR that you have an PF account and as such you will like to continue the same.
One more note that Transfer of PF from one company to other was a cumbersome process, but I guess EPFO has now made it available online. Do check on their website
Now, Your company is following what most companies in India do is to place the basic at higher side and get an excuse not to pay the PF. I know, you will have difficulty in this and HR guy who is speaking to you is not aware of the Legal facts, which your MD/CEO of company is fully aware of that its their obligation to continue your PF if you request. It is just that they do not want to get into the PF submission and the connected bureaucracy.
Just for your information, companies who do not wish to have PF usually will get it in writing from all employees that they do not wish to subscribe for PF.
My best advice is to get few more employees in writing to company to include them in PF. Here are some excellent writeup from our people who I follow . Read them and also share with your friends and colleagues.
Anand's Blog: All Your Questions about Employee Provident Fund - Answered!!!
Anand's Blog: Employee Provident Fund - Demystified
I did hear from my resources that Government might soon change the employer contribution and definition of Basic salary and that PF might be made compulsory for all employers. Its a good news to all employees and I am waiting when this will happen. Here is a link for your eyes on what I mentioned here.
New PF contribution rule may reduce your take home salary | Wealth18.com
In short, I wish all young worker's between age of 18 to 32, do not let go the PF options while negotiating the salary. You will take home would be less , but in your golden age when you retire, you will see the fruits.
Wish you good luck.
Ukmitra[/QUOTE
From India, Moradabad
[QUOTE=ukmitra;2079084]
Hi Rohit,
EPF and NPS are two different schemes and you cannot be transfer funds between them. EPF is maintained by Employer and NPS is a Self Financed Fund.
Regarding Salary above 6500, please note that cap for 6500 is for the contribution amount from the employer. i.e. the employer is not liable to pay to your PF fund more than 12% of 6500. But an employee can on "Voluntary Basis" pay more than 12%. Insist with your HR that you have an PF account and as such you will like to continue the same.
One more note that Transfer of PF from one company to other was a cumbersome process, but I guess EPFO has now made it available online. Do check on their website
Now, Your company is following what most companies in India do is to place the basic at higher side and get an excuse not to pay the PF. I know, you will have difficulty in this and HR guy who is speaking to you is not aware of the Legal facts, which your MD/CEO of company is fully aware of that its their obligation to continue your PF if you request. It is just that they do not want to get into the PF submission and the connected bureaucracy.
Just for your information, companies who do not wish to have PF usually will get it in writing from all employees that they do not wish to subscribe for PF.
My best advice is to get few more employees in writing to company to include them in PF. Here are some excellent writeup from our people who I follow . Read them and also share with your friends and colleagues.
Anand's Blog: All Your Questions about Employee Provident Fund - Answered!!!
Anand's Blog: Employee Provident Fund - Demystified
I did hear from my resources that Government might soon change the employer contribution and definition of Basic salary and that PF might be made compulsory for all employers. Its a good news to all employees and I am waiting when this will happen. Here is a link for your eyes on what I mentioned here.
New PF contribution rule may reduce your take home salary | Wealth18.com
In short, I wish all young worker's between age of 18 to 32, do not let go the PF options while negotiating the salary. You will take home would be less , but in your golden age when you retire, you will see the fruits.
Wish you good luck.
Ukmitra[/QUOTE
From India, Moradabad
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls