Hi
In our Company we provide PF coverage to all employees irrespective of their salary.
Now a new employee has joined in the company with a Basic Salary of Rs.30000/- and he does not want to have PF facility and deductions.
Can we exempt him from PF contributions and also let me know the procedures and forms to be filled by him.
Regards
erv
From India, Madras
In our Company we provide PF coverage to all employees irrespective of their salary.
Now a new employee has joined in the company with a Basic Salary of Rs.30000/- and he does not want to have PF facility and deductions.
Can we exempt him from PF contributions and also let me know the procedures and forms to be filled by him.
Regards
erv
From India, Madras
For not covering an employee whose basic is more than 6.5K and who is not the existing pf subscriber in any of his previous organisation, may be treated as excluded employee under para 2f and under para 34 of the PF scheme, he have have to filled up the form 11.
From India, Thana
6From India, Thana
Hello ERV:
In addition to what gh_manas25 has informed, as far as my recent experience goes, this exemption is not selective. If you apply for this exemption, then all employees who have basic for more than 6,500/-will get exempted.
From India, Pune
In addition to what gh_manas25 has informed, as far as my recent experience goes, this exemption is not selective. If you apply for this exemption, then all employees who have basic for more than 6,500/-will get exempted.
From India, Pune
Dear All
I too, would like to clarify few of the points related to PF:-
1)For those employees whose basic salary is more than Rs 6500, few companies state way extempt them from PF, what should be the legal way of the same. Though he would have opt for PF but he is now not getting the same.
2) Secondly , now any employees whose basic is more than Rs 6500, (for instance Rs 10000) what should be his deduction. Please find below the deduction and state which is correct--
Basic -- Rs 10000
A) PF deducted from the employee:- Rs 1200/-
PF deducted from the employer:- Rs 1200/-of which Rs 541 would go to pension and the remaining to his account (1200-541)
OR
A) PF deducted from the employee:- Rs 780/-
PF deducted from the employer:- Rs 780/-
Please clarify.
3) As per the act what I know is that 1.61% of the PF charges is to be borne by the employer. Should the same % be taken into account while calculating the CTC or not .
4) If any employee whose basic is above Rs 6500/- is there any legal binding that the company will deduct only Rs 780/- from his salary as Pf deduction and not the original binding.
From India, Calcutta
I too, would like to clarify few of the points related to PF:-
1)For those employees whose basic salary is more than Rs 6500, few companies state way extempt them from PF, what should be the legal way of the same. Though he would have opt for PF but he is now not getting the same.
2) Secondly , now any employees whose basic is more than Rs 6500, (for instance Rs 10000) what should be his deduction. Please find below the deduction and state which is correct--
Basic -- Rs 10000
A) PF deducted from the employee:- Rs 1200/-
PF deducted from the employer:- Rs 1200/-of which Rs 541 would go to pension and the remaining to his account (1200-541)
OR
A) PF deducted from the employee:- Rs 780/-
PF deducted from the employer:- Rs 780/-
Please clarify.
3) As per the act what I know is that 1.61% of the PF charges is to be borne by the employer. Should the same % be taken into account while calculating the CTC or not .
4) If any employee whose basic is above Rs 6500/- is there any legal binding that the company will deduct only Rs 780/- from his salary as Pf deduction and not the original binding.
From India, Calcutta
Dear All
The new joinee in our company was earlier member of provident fund in his previous company where he was working for 16 years and was contributing PF for his Basic Salary Rs.30000/- ie Rs.3600/- p.m..
He resigned that company a year back and has withdrawn his PF accumulations.
He was doing business for the past one year and now joined in our company and his basic is Rs. 30000/- and he does not want PF facility.
Can he be exempted in our company for PF coverage or he should be under PF coverage in our company also.
I was informed that since he has already been a member, whether he has withdrawn his PF accumulations or not he should be covered under PF in our company and he should mandatorily contribute upto Basic Rs.6500/-. Please let me know whether this is correct or not
Regards
erv
From India, Madras
The new joinee in our company was earlier member of provident fund in his previous company where he was working for 16 years and was contributing PF for his Basic Salary Rs.30000/- ie Rs.3600/- p.m..
He resigned that company a year back and has withdrawn his PF accumulations.
He was doing business for the past one year and now joined in our company and his basic is Rs. 30000/- and he does not want PF facility.
Can he be exempted in our company for PF coverage or he should be under PF coverage in our company also.
I was informed that since he has already been a member, whether he has withdrawn his PF accumulations or not he should be covered under PF in our company and he should mandatorily contribute upto Basic Rs.6500/-. Please let me know whether this is correct or not
Regards
erv
From India, Madras
Dear erv,
as the employee had already withdraw his pf contribution form his earlier org. hene he is no longer the member of pf fund. hence statutorily it no longer require to deduct pf. only as i mention earlier he have to filled up the form -11 declearing that he is no longer existing member PF.
regards
MG
From India, Thana
as the employee had already withdraw his pf contribution form his earlier org. hene he is no longer the member of pf fund. hence statutorily it no longer require to deduct pf. only as i mention earlier he have to filled up the form -11 declearing that he is no longer existing member PF.
regards
MG
From India, Thana
we have selected a new candidate with basic salary Rs.20000/- He was working with x company till 16 aug 2017 and is member of epf and eps , But now he dont want pf deduction in our company as his salary is above prescribed limit he has the option to opt out . We are taking form 11 from his but do we need to take any undertaking also and what would be format of undertaking.
Pl guide.
Pl guide.
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Judgement - Bom HC - Temp employee.doc