Dear Guru's,
I have one query regarding PF Exemption.
If X is employee is newly recruited in an organization. His gross salary will be Rs. 6900 & salary bifurcation is:
Basic+DA : 6500
HRA : 400
Then can Mr. X is exempted from PF?
Please guide me on the same.
Awaiting your quick response.
With Regards,
Vineet Deshmukh
From India, Yavatmal
25I have one query regarding PF Exemption.
If X is employee is newly recruited in an organization. His gross salary will be Rs. 6900 & salary bifurcation is:
Basic+DA : 6500
HRA : 400
Then can Mr. X is exempted from PF?
Please guide me on the same.
Awaiting your quick response.
With Regards,
Vineet Deshmukh
From India, Yavatmal
It is mandatory for an employee whose pay (basic + DA) is upto Rs 6500 to be a member of EPF. As Mr X basic+DA is 6500 he is not exempted from PF
From India, Delhi
From India, Delhi
Dear caabbas, I Mr. X''s Basic+DA= 6600 & HRA is Rs. 300 then can he exempted from PF? If no then how much salary given to Mr. X for exemption of PF. With Regards, Vineet Deshmukh
From India, Yavatmal
From India, Yavatmal
Hi Vineet
In that case he is exempted. But it is not advisable as if any PF inspector visits office he may point out the same and he may ask you to provide proper breakup as others are having and you might end up in paying both EE & ER contributions along with interest & penalty.
From India, Bangalore
In that case he is exempted. But it is not advisable as if any PF inspector visits office he may point out the same and he may ask you to provide proper breakup as others are having and you might end up in paying both EE & ER contributions along with interest & penalty.
From India, Bangalore
Dear Jeevarathnam, As per my Knowledge, there is no law in India that decide the salary breakup of any employee. Salary is decided by negotiations with employee and it may be any amount.
From India, Delhi
From India, Delhi
Dear Mr. Sayeed
I do agree as there is no any law for salary breakup. But PF department feels as only due to avoid PF contribution we have designed the breakup. We can't even convince them. Thats my opinion.
From India, Bangalore
I do agree as there is no any law for salary breakup. But PF department feels as only due to avoid PF contribution we have designed the breakup. We can't even convince them. Thats my opinion.
From India, Bangalore
Dear Seniors, i want to ask is there any clause in pf act that those whose gross salary is above 15000 they have to give both contributions from his salary. kindly answer.....
From United States
From United States
Dear All
Pl. note that PF. contribution should be calculated on portion of minimum wages as per law. The minimum wages can not be split up in other allowances to avoid PF liability.
Pl. find attached circular regarding the same.
Thanks !
Neeraj R. Rachalwar
9922436447
Nagpur (M.S.)
From India, Nagpur
Pl. note that PF. contribution should be calculated on portion of minimum wages as per law. The minimum wages can not be split up in other allowances to avoid PF liability.
Pl. find attached circular regarding the same.
Thanks !
Neeraj R. Rachalwar
9922436447
Nagpur (M.S.)
From India, Nagpur
Dear Neeraj,
I have read above circular. It is related to splitting of Minimum Wages to reduce PF Liability.
e.g IF according to Minimum Wages Basic+DA is 5000 then you must deduct PF on 5000. But if this 5000 is split among other allowances then PF liability is low which is illegal as per above circular.
My question is if Mr. X's Basic+DA is Rs. 6500 & HRA 400 then can Mr. X will exempt from PF?
Mr. Syed & Mr.Jeevarathnam thank you for your suggestion.
With Regards,
Vineet Deshmukh
From India, Yavatmal
I have read above circular. It is related to splitting of Minimum Wages to reduce PF Liability.
e.g IF according to Minimum Wages Basic+DA is 5000 then you must deduct PF on 5000. But if this 5000 is split among other allowances then PF liability is low which is illegal as per above circular.
My question is if Mr. X's Basic+DA is Rs. 6500 & HRA 400 then can Mr. X will exempt from PF?
Mr. Syed & Mr.Jeevarathnam thank you for your suggestion.
With Regards,
Vineet Deshmukh
From India, Yavatmal
Dear Friend,
Section f(ii) of the Employees Provident Fund scheme defines exluded employee -" an employee whose pay at any time he is otherwise entitled to become a member of the fund exceeds 6500/- p.m."
In your case if X is an employee whose was not an earlier member of PF and whose pay exceeds 6500/- p.m in your company , then he can be treated as an excluded employee. Then it is not mandatory for you to register him in PF.
To get the benefit of the section you need not submit any letter before the dept. The only condition is the in eve of any inspection you should be able to show him that he draws more than Rs 6500/- as pay per month.
But in case if he is already registered in PF in some other company , then you should compulsary register hi
m in PF. But in case if he close the previous account and he withdraw all amount from PF then also you can use the benefit of the section .
Yours faithfully,
Jiju V.S.
Asst Manager Hr - Legal
The Leela Kovalam
From India, Thiruvananthapuram
Section f(ii) of the Employees Provident Fund scheme defines exluded employee -" an employee whose pay at any time he is otherwise entitled to become a member of the fund exceeds 6500/- p.m."
In your case if X is an employee whose was not an earlier member of PF and whose pay exceeds 6500/- p.m in your company , then he can be treated as an excluded employee. Then it is not mandatory for you to register him in PF.
To get the benefit of the section you need not submit any letter before the dept. The only condition is the in eve of any inspection you should be able to show him that he draws more than Rs 6500/- as pay per month.
But in case if he is already registered in PF in some other company , then you should compulsary register hi
m in PF. But in case if he close the previous account and he withdraw all amount from PF then also you can use the benefit of the section .
Yours faithfully,
Jiju V.S.
Asst Manager Hr - Legal
The Leela Kovalam
From India, Thiruvananthapuram
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Exemption under Sec.17(1)(a) of PF Act 18.11.2011.pdf