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
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From India, Gurgaon
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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
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972From India, Thiruvananthapuram
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yes It Is, However its not on docs but many reputed companies are offerings this. You are correct no doubt.
From India, Gurgaon
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From India, Gurgaon
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Hi All,
As per the EPF Act, every employee should be a member of PF and eligible for EPF benefits, contributing to the EPF fund. An employee who does not want EPF benefits should have opted out at the beginning of their career and informed the employer and EPF office using a prescribed form, i.e., Form 11. By that time, their basic wage must be above 6500/-.
Once an employee becomes a member of EPF, they should remain a member until superannuation, regardless of job switches or salary enhancements.
It is beneficial for the member to have savings with an impressive interest rate and without any tax imposition on a certain amount. Try to convince employees by explaining all the EPF benefits.
Regards,
Ravichandra
From India, Hyderabad
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As per the EPF Act, every employee should be a member of PF and eligible for EPF benefits, contributing to the EPF fund. An employee who does not want EPF benefits should have opted out at the beginning of their career and informed the employer and EPF office using a prescribed form, i.e., Form 11. By that time, their basic wage must be above 6500/-.
Once an employee becomes a member of EPF, they should remain a member until superannuation, regardless of job switches or salary enhancements.
It is beneficial for the member to have savings with an impressive interest rate and without any tax imposition on a certain amount. Try to convince employees by explaining all the EPF benefits.
Regards,
Ravichandra
From India, Hyderabad
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Hi,
Thank you for your suggestions. However, I am currently facing a new issue, and I would appreciate your assistance. Our organization is one year old, and we have not yet registered for PF and ESI. Recently, we have reached 20 employees. We are now in the process of registering for PF and ESI. However, most employees have a basic salary exceeding 6500/- and are not interested in availing PF and ESI benefits. If we exempt these employees, we will have around 10 remaining members.
In this situation, I am unsure whether I need to proceed with PF registration. Is it mandatory?
From India, Tirupati
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Thank you for your suggestions. However, I am currently facing a new issue, and I would appreciate your assistance. Our organization is one year old, and we have not yet registered for PF and ESI. Recently, we have reached 20 employees. We are now in the process of registering for PF and ESI. However, most employees have a basic salary exceeding 6500/- and are not interested in availing PF and ESI benefits. If we exempt these employees, we will have around 10 remaining members.
In this situation, I am unsure whether I need to proceed with PF registration. Is it mandatory?
From India, Tirupati
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I see that the discussion has gone all over the place. The rules for whether PF is compulsory can be summarized 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 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 cannot 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
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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 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 cannot 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
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For freshers who are taking up employment for the first time, it is compulsory to become PF members. The ceiling of PF is likely to be enhanced, as shared by the Minister of State for Labour in the previous Ministry.
Those who were already members of PF and are currently employed with a higher salary have the option to become PF members by contributing to the PF at the stipulated percentage of the ceiling limit.
Those who wish to invest more in PF are also free to contribute to PF as VPF (Voluntary Provident Fund) contributions.
Thanks,
R K Nair
From India, Aizawl
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Those who were already members of PF and are currently employed with a higher salary have the option to become PF members by contributing to the PF at the stipulated percentage of the ceiling limit.
Those who wish to invest more in PF are also free to contribute to PF as VPF (Voluntary Provident Fund) contributions.
Thanks,
R K Nair
From India, Aizawl
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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
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From India, Bangalore
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Hi,
As per my knowledge, PF is compulsory for all the employees in an organization if their strength is more than 20. The wage limit is ₹6500 and above, this is an option for management. We cannot exclude PF. If you want to seek exclusion, then you have to register your organization as a PF exempted organization. To do so, your organization should have its own PF scheme that takes care of all the benefits available in the PF scheme. Only then can an employee seek exclusion using Form-11.
Another scenario where an employee can be excluded from PF is if the employee is already benefiting from the PF scheme.
Please correct me if I'm wrong in any of the above statements.
Kind Regards, Shreyas
From India, Bangalore
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As per my knowledge, PF is compulsory for all the employees in an organization if their strength is more than 20. The wage limit is ₹6500 and above, this is an option for management. We cannot exclude PF. If you want to seek exclusion, then you have to register your organization as a PF exempted organization. To do so, your organization should have its own PF scheme that takes care of all the benefits available in the PF scheme. Only then can an employee seek exclusion using Form-11.
Another scenario where an employee can be excluded from PF is if the employee is already benefiting from the PF scheme.
Please correct me if I'm wrong 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