Dear Jhuma
There is a phrase called "with reference to context".
Just like you explained in this post (which has made the situation very clear) had you asked/framed the question with a reference to context like :
"One of my friend was arguing that "PF need not be mandatory, it can be optional". Is he correct ?"
It would have solved the problem, without it being a LENGTHY QUESTION.
But simply asking "Can PF be optional ?" !!! Its like asking "Can Theft be a Crime ?"
I guess the old school teachers of previous century, would have caned you on you-know-where. :-D
Please understand, senior members are hard pressed for time and at times they can feel exasperated with such questions which do sound (pardon me for this) silly.
Ideally, you should have posted this question under the "Talk To Seniors" threads and not under HRM thread; under the Human Resources Section.
And, please refrain from bad-mouthing members. CiteHR is a wonderful site for HR professionals and the members are generally very HELPFUL. Please remember, anybody who is posting his comments (whether its to your liking or not) has spent his precious time in reading your posts and responding to it.
It is OK if you can not be THANKFUL to them for expressing their personal opinion.
Regards.
From India, Delhi
1426There is a phrase called "with reference to context".
Just like you explained in this post (which has made the situation very clear) had you asked/framed the question with a reference to context like :
"One of my friend was arguing that "PF need not be mandatory, it can be optional". Is he correct ?"
It would have solved the problem, without it being a LENGTHY QUESTION.
But simply asking "Can PF be optional ?" !!! Its like asking "Can Theft be a Crime ?"
I guess the old school teachers of previous century, would have caned you on you-know-where. :-D
Please understand, senior members are hard pressed for time and at times they can feel exasperated with such questions which do sound (pardon me for this) silly.
Ideally, you should have posted this question under the "Talk To Seniors" threads and not under HRM thread; under the Human Resources Section.
And, please refrain from bad-mouthing members. CiteHR is a wonderful site for HR professionals and the members are generally very HELPFUL. Please remember, anybody who is posting his comments (whether its to your liking or not) has spent his precious time in reading your posts and responding to it.
It is OK if you can not be THANKFUL to them for expressing their personal opinion.
Regards.
From India, Delhi
Hi,
What happens if an individual has compulsory PF deductions at X company, he leaves this company and joins Y company where there is a facility to choose for PF deductions, he opts out of the PF at Y, can he do so?
Regards,
Renuka N.
From India, Mumbai
What happens if an individual has compulsory PF deductions at X company, he leaves this company and joins Y company where there is a facility to choose for PF deductions, he opts out of the PF at Y, can he do so?
Regards,
Renuka N.
From India, Mumbai
YES;
if his salary is beyond the eligibility limit and the new company Y do not have a policy on voluntary contribution.
(In fact, it is very common in Industry. But, it does affect the pensionary benefits of the member).
However, I invite our senior members to give their opinion.
Regards.
From India, Delhi
if his salary is beyond the eligibility limit and the new company Y do not have a policy on voluntary contribution.
(In fact, it is very common in Industry. But, it does affect the pensionary benefits of the member).
However, I invite our senior members to give their opinion.
Regards.
From India, Delhi
fo rclarification
I beleive firmly now that PF @12% to be deducted on B+DA if employee covers even if in case his earlier B+DA was below it.
If an employee joins from other org where he was covered under PF, then co. is bound to ask him to join PF contri and so NO OPTIONs.
If he is Fresh passed ut like MBA, IT from premier institute where co pays naturally more salary, you can opt to him join or not as this is his 1st service in life. (OPTION available)
In other all cases you have to deduct PF ( At the time of joining new co. it remain optional by the co to restrict there contri on 6500 or on entire B+DA as negotiation toll)
Mahesh Kate
From Singapore, Singapore
I beleive firmly now that PF @12% to be deducted on B+DA if employee covers even if in case his earlier B+DA was below it.
If an employee joins from other org where he was covered under PF, then co. is bound to ask him to join PF contri and so NO OPTIONs.
If he is Fresh passed ut like MBA, IT from premier institute where co pays naturally more salary, you can opt to him join or not as this is his 1st service in life. (OPTION available)
In other all cases you have to deduct PF ( At the time of joining new co. it remain optional by the co to restrict there contri on 6500 or on entire B+DA as negotiation toll)
Mahesh Kate
From Singapore, Singapore
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls