Dear All,
One of our employees joined in January 2013 and became a member under PF. Accordingly, PF amount was deducted from his salary until March '13. The particular employee has submitted a request to stop PF deduction from April '13 onwards, citing the reason that his basic salary is beyond Rs 6500/- and has opted for exemption. Can we exempt that employee from PF? If so, what forms need to be submitted to the PF office?
Please clarify if there is any special procedure to be followed for an employee to obtain PF exemption after three months of PF contributions to EPFO.
I request all seniors and professionals for their opinions and inputs on the above.
With regards,
Boppudi Venu
From India, Bangalore
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1One of our employees joined in January 2013 and became a member under PF. Accordingly, PF amount was deducted from his salary until March '13. The particular employee has submitted a request to stop PF deduction from April '13 onwards, citing the reason that his basic salary is beyond Rs 6500/- and has opted for exemption. Can we exempt that employee from PF? If so, what forms need to be submitted to the PF office?
Please clarify if there is any special procedure to be followed for an employee to obtain PF exemption after three months of PF contributions to EPFO.
I request all seniors and professionals for their opinions and inputs on the above.
With regards,
Boppudi Venu
From India, Bangalore
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HI Venu If any employee becomes member of PF then there is no any provision to stop his/her PF contributions even if the wages exceeds 6500/-. But the same shall be restricted till 6500/-
From India, Bangalore
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From India, Bangalore
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No Contribution shall be continued on PF wages 6500/- Ajay Pal Singh
From India, Delhi
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From India, Delhi
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Hi Venu,
As per the definition in Section 2(f)(ii) of The Employees' Provident Fund Scheme, 1952, an employee, "who is otherwise entitled to become a member of the Fund, becomes an "Excluded Employee" when his basic salary [wage] + DA exceeds Rs. 6,500.
So, for the purpose of earning interest on his earlier PF accumulation and for pension purposes, he may still continue to be a member of the Fund. However, going by the definition, you need not deduct or contribute PF in respect of his salary.
I saw a similar view recently expressed on the website of the Kerala EPFO.
Regards,
Ramdas S. Iyer
Chennai
From India, Madras
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As per the definition in Section 2(f)(ii) of The Employees' Provident Fund Scheme, 1952, an employee, "who is otherwise entitled to become a member of the Fund, becomes an "Excluded Employee" when his basic salary [wage] + DA exceeds Rs. 6,500.
So, for the purpose of earning interest on his earlier PF accumulation and for pension purposes, he may still continue to be a member of the Fund. However, going by the definition, you need not deduct or contribute PF in respect of his salary.
I saw a similar view recently expressed on the website of the Kerala EPFO.
Regards,
Ramdas S. Iyer
Chennai
From India, Madras
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The above definition can be invoked at the time of his joining not after contributing for few months. Varghese Mathew
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Venu,
An employee can be treated as an excluded employee only under the following circumstances:
(a) He was a member and withdrew the entire amount from the fund either on superannuation or upon migrating to a foreign country.
(b) At the time of becoming a member for the first time when his wage is more than Rs. 6500 per month.
(c) An apprentice as per the certified standing orders.
Other than the clauses mentioned above, you cannot term anybody as an excluded employee as per the current act in force. I am enclosing an extract of the EPF & MP Act 1952 regarding excluded employees for the benefit of all readers.
Regards,
P. Vathiraj
From India
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An employee can be treated as an excluded employee only under the following circumstances:
(a) He was a member and withdrew the entire amount from the fund either on superannuation or upon migrating to a foreign country.
(b) At the time of becoming a member for the first time when his wage is more than Rs. 6500 per month.
(c) An apprentice as per the certified standing orders.
Other than the clauses mentioned above, you cannot term anybody as an excluded employee as per the current act in force. I am enclosing an extract of the EPF & MP Act 1952 regarding excluded employees for the benefit of all readers.
Regards,
P. Vathiraj
From India
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Hi sir, If employee got per day salary exceed 250 means PF is Complsary or not, pls give some refernce to me regards senraj nagarajan
From India, Madurai
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From India, Madurai
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Apprentices under the Apprentices Act are also exempted from EPF. There is no provision in the EPF Act which excludes a person with daily wages below Rs 250, and it is compulsory if it exceeds Rs 250.
Varghese Mathew
From India, Thiruvananthapuram
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Varghese Mathew
From India, Thiruvananthapuram
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Dear Seniors, please guide me on the same issue, if he fills the form 11 and company submit it to pf dept. then also is he unexempted from pf deduction. Regards
From United States
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From United States
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Dear Sir,
My salary was $6000 in 2013, and I was receiving an honorarium of Rs. 1000. I am wondering if I am eligible for EPF deduction. Should my honorarium be included in my salary, or will I be considered an excluded employee?
Kindly provide me with a response.
Regards,
Rahul Thakur
Marketing Executive
From India, Patna
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My salary was $6000 in 2013, and I was receiving an honorarium of Rs. 1000. I am wondering if I am eligible for EPF deduction. Should my honorarium be included in my salary, or will I be considered an excluded employee?
Kindly provide me with a response.
Regards,
Rahul Thakur
Marketing Executive
From India, Patna
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