Dear Seniors
Greetings of the day!!!!
I am working as HR in charge in a Biotech company situated in kalol (near Ahmedabad). I need help regarding PF exemption.
One of our employee's CTC was revised W.E.F 1.11.2010. Earlier his basic was 5800 now it is revised to 7900. As now his basic is above 6500 he wants to deduct his PF on 6500 or discontinue to deduct the PF. Now i just want help regarding procedure and which forms to be submitted by employee as well as employer to EPFO.
Regards
Shivang
From India, Ahmadabad
Greetings of the day!!!!
I am working as HR in charge in a Biotech company situated in kalol (near Ahmedabad). I need help regarding PF exemption.
One of our employee's CTC was revised W.E.F 1.11.2010. Earlier his basic was 5800 now it is revised to 7900. As now his basic is above 6500 he wants to deduct his PF on 6500 or discontinue to deduct the PF. Now i just want help regarding procedure and which forms to be submitted by employee as well as employer to EPFO.
Regards
Shivang
From India, Ahmadabad
Dear Shivang,
He doesn't have choice to discontinue because he has already been member of the PF and can't opt because as a PF rule if an employee is become member of PF scheme he can't be out during the job and remain a member. As you said his basic increased therefore he wanted to contribute on the same, it is not, his contribution will be on new basic and pension amount will be deducted on Rs 6500/- @ 8.33% and rest of the %age will be added in PF contribution.
Regards,
John
From India, Delhi
3He doesn't have choice to discontinue because he has already been member of the PF and can't opt because as a PF rule if an employee is become member of PF scheme he can't be out during the job and remain a member. As you said his basic increased therefore he wanted to contribute on the same, it is not, his contribution will be on new basic and pension amount will be deducted on Rs 6500/- @ 8.33% and rest of the %age will be added in PF contribution.
Regards,
John
From India, Delhi
My question is Mr. A is an employee of X company and Mr. A was joined in the year2010 with a Basic salary of rs. 8000/- and he wants not to deduct PF from his monthly salary is it possible? If yeas then How ?
REGARDS
JOJO81
From India, Bangalore
REGARDS
JOJO81
From India, Bangalore
Sub:P F EXEMPTION FOR COMPANY DEAR seniors, Can you please explain the procedure for getting exemption from PF act for a small company under Ap shops & Est act?
From India, Hyderabad
From India, Hyderabad
An employee once covered under the EPF will continue to be covered irrespective of any hike in his salary. However, he can restrict his contribution to 12% of Rs 6500.
If at the time of joining with a basic salary of Rs 8000, he was given coverage, he can not discontinue it.
Exemption from operation of EPF is given to an establishment when the EPF Organisation finds that the establishment has a separate schemes for social security and pension which are more beneficial than what are provided by the EPFO. For a small establishment I don't think that there could be a better scheme than PF schemes.
Regards,
Madhu.T.K
From India, Kannur
If at the time of joining with a basic salary of Rs 8000, he was given coverage, he can not discontinue it.
Exemption from operation of EPF is given to an establishment when the EPF Organisation finds that the establishment has a separate schemes for social security and pension which are more beneficial than what are provided by the EPFO. For a small establishment I don't think that there could be a better scheme than PF schemes.
Regards,
Madhu.T.K
From India, Kannur
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Exemption under Sec.17(1)(a) of PF Act 18.11.2011.pdf