Dear All,
We are associated with the construction industry and deal with migratory labor. Can we exempt the worker from the PF Act if we show his PF-able salary as more than 6500/-? Please advise on filling out FORM-11 and taking voluntary exemption from contributions, as the company would not have to contribute.
Regards,
Ashish
Sr. HRD
From India, Calcutta
11We are associated with the construction industry and deal with migratory labor. Can we exempt the worker from the PF Act if we show his PF-able salary as more than 6500/-? Please advise on filling out FORM-11 and taking voluntary exemption from contributions, as the company would not have to contribute.
Regards,
Ashish
Sr. HRD
From India, Calcutta
It is not possible to get exemption under EPF as it is a statute. better consult a good labour lawyer on this.
From India, New Delhi
From India, New Delhi
If an employee is receiving a basic salary of more than 6500/- right from the time of employment and was also not covered under PF in their previous employment, such employees can be exempted from EPF deduction and contribution.
Regards,
Kamal
From India, Pune
Regards,
Kamal
From India, Pune
For Employees
For New Entrants:
Enrolment: An employee is eligible for membership from the day he joins the covered establishment.
If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
Declare previous employment details, if any, in Form No. 11 to the employer.
From India, Pune
For New Entrants:
Enrolment: An employee is eligible for membership from the day he joins the covered establishment.
If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
Declare previous employment details, if any, in Form No. 11 to the employer.
From India, Pune
For Employees
For New Entrants:
Enrolment: An employee is eligible for membership from the day he joins the covered establishment.
If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
Declare previous employment details, if any, in Form No. 11 to the employer. In the form 11 take the details of employee previous employment & filled by the employees signed by them & file it as office copy, Form-11 is given in EPFO office it is given free of cost. Fill the form when the employee is joined in your organisation.
This is for your information
From India, Bangalore
For New Entrants:
Enrolment: An employee is eligible for membership from the day he joins the covered establishment.
If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
Declare previous employment details, if any, in Form No. 11 to the employer. In the form 11 take the details of employee previous employment & filled by the employees signed by them & file it as office copy, Form-11 is given in EPFO office it is given free of cost. Fill the form when the employee is joined in your organisation.
This is for your information
From India, Bangalore
Dear Ashish,
I would like to illustrate the definition of Sec 2(ff) and 2(fff) of EPF & MP Act, 1952.
"Exempted employee means an employee to whom a scheme or the insurance scheme, as the case may be, would, but for the exemption granted under sec 17, have applied."
"Exempted establishment means an establishment in respect of which an exemption has been granted under sec.17 from the operation of all or any of the provisions of any scheme or the insurance scheme, as the case may be, whether such exemption has been granted to the establishment as such or to any person or class of persons employed therein."
While deciding about exemption under Sec.17 of EPF Act, PF authorities definitely test the application to determine whether the proposal offered is better than the Scheme.
The Supreme Court in Cemindia Co. Ltd Vs Bachubhai N. Raval (1998 (1) LLJ Page No.138) held: Any establishment that carries on an activity which is part of the building and construction industry should naturally be exempted from the operation of the act because the expression "building and construction industry" collectively refers to all activities connected with the industry.
In your case, in my opinion:
1. If your company is already covered under the EPF Act, you cannot escape from the legal obligations (EPF Act). Migratory labor will also be covered under the EPF Act.
2. If you seek exemption for a specific class of employees by demonstrating wages above the prescribed limit (>6500), it will be permissible under the law, provided they were not covered by PF in their previous employment.
3. Under the protection of the "Building and Construction Industry," you can apply for exemption.
Contrary to the above, please let me know.
Regards,
D. Pannerselvam
From India, Mumbai
I would like to illustrate the definition of Sec 2(ff) and 2(fff) of EPF & MP Act, 1952.
"Exempted employee means an employee to whom a scheme or the insurance scheme, as the case may be, would, but for the exemption granted under sec 17, have applied."
"Exempted establishment means an establishment in respect of which an exemption has been granted under sec.17 from the operation of all or any of the provisions of any scheme or the insurance scheme, as the case may be, whether such exemption has been granted to the establishment as such or to any person or class of persons employed therein."
While deciding about exemption under Sec.17 of EPF Act, PF authorities definitely test the application to determine whether the proposal offered is better than the Scheme.
The Supreme Court in Cemindia Co. Ltd Vs Bachubhai N. Raval (1998 (1) LLJ Page No.138) held: Any establishment that carries on an activity which is part of the building and construction industry should naturally be exempted from the operation of the act because the expression "building and construction industry" collectively refers to all activities connected with the industry.
In your case, in my opinion:
1. If your company is already covered under the EPF Act, you cannot escape from the legal obligations (EPF Act). Migratory labor will also be covered under the EPF Act.
2. If you seek exemption for a specific class of employees by demonstrating wages above the prescribed limit (>6500), it will be permissible under the law, provided they were not covered by PF in their previous employment.
3. Under the protection of the "Building and Construction Industry," you can apply for exemption.
Contrary to the above, please let me know.
Regards,
D. Pannerselvam
From India, Mumbai
Dear Sir,
If he is already a member of P.F. and contributing to PF, you have to continue his PF membership by restricting his contribution to Rs. 6,500/-.
If he is a new person drawing above Rs. 6,500/-, you can exempt him from membership. It is valid in law.
D. Gurumurthy
LL, HR & IR Consultant
From India, Hyderabad
If he is already a member of P.F. and contributing to PF, you have to continue his PF membership by restricting his contribution to Rs. 6,500/-.
If he is a new person drawing above Rs. 6,500/-, you can exempt him from membership. It is valid in law.
D. Gurumurthy
LL, HR & IR Consultant
From India, Hyderabad
Dear Ashish,
Form 11 is to declare that the employee is an "Excluded Employee" as he withdraws more than Rs. 6500/- and should possess any of the following:
- have withdrawn the amount of my Provident Fund/Pension Fund.
- have never drawn any superannuation benefits in respect of my past service from any employer.
- have never been a member of any Provident Fund and/or Pension Fund.
- not drawing Pension under EPS 95.
- not a holder of a scheme Certificate.
If the employee's basic wages are more than Rs. 6500 and if he falls under any of the above, on mutual concern between the employer and employee, that employee may avail the benefit of non-coverage under PF as an Excluded employee. Please don't confuse with Exemption; it's different from exclusion.
Regards,
Sridharan J
From India, Madras
Form 11 is to declare that the employee is an "Excluded Employee" as he withdraws more than Rs. 6500/- and should possess any of the following:
- have withdrawn the amount of my Provident Fund/Pension Fund.
- have never drawn any superannuation benefits in respect of my past service from any employer.
- have never been a member of any Provident Fund and/or Pension Fund.
- not drawing Pension under EPS 95.
- not a holder of a scheme Certificate.
If the employee's basic wages are more than Rs. 6500 and if he falls under any of the above, on mutual concern between the employer and employee, that employee may avail the benefit of non-coverage under PF as an Excluded employee. Please don't confuse with Exemption; it's different from exclusion.
Regards,
Sridharan J
From India, Madras
With a contractor having 150 workers employed, when submitting the RA Bill, he includes PF Challan for 40 employees only. The remaining employees are exempted from PF contributions according to his statement. What documentation is needed to clarify the exemption of the remaining employees from the PF Act, as per the statute?
From India
From India
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