Dear All,
I have a doubt regarding PF contributions. One of our employees worked for a government organization and opted for PF while working there. She joined our company in 2009 and requested not to deduct PF. We completed the process of signing the application.
I would like to know if there is a policy that allows her to opt-out of PF contributions or if she is required to pay the PF. I am looking forward to your valuable feedback on this matter.
Thanks & Regards,
Priya
From India, Madras
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I have a doubt regarding PF contributions. One of our employees worked for a government organization and opted for PF while working there. She joined our company in 2009 and requested not to deduct PF. We completed the process of signing the application.
I would like to know if there is a policy that allows her to opt-out of PF contributions or if she is required to pay the PF. I am looking forward to your valuable feedback on this matter.
Thanks & Regards,
Priya
From India, Madras
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It all depends on the company's policy. If you have a written company policy, then it would help you. You can also ask the finance department or your CA about the policy if there is nothing written.
Regards
From India, Delhi
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65Regards
From India, Delhi
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Is Company policy is enough! But according to the PF policy we should deduct for all right. Sorry Ms. Anu could you give me more clarity on this. Thanks in Advance. Regards, Priya
From India, Madras
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From India, Madras
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If she has withdrawn her PF contributions and now she is above the limit of 6500, then she can opt out of PF. But is she has not then you have to continue with PF contributions.
From India, Hyderabad
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From India, Hyderabad
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Dear Marysaminthan,
First, let's check if she has completed 60 years. If not, she is eligible for PF. If she has opted for non-contribution, check if you have obtained approval from PF authorities for the exemption of PF contribution for those drawing more than a 6500 basic salary. If not, you will have to contribute to the PF accordingly.
From India, Visakhapatnam
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First, let's check if she has completed 60 years. If not, she is eligible for PF. If she has opted for non-contribution, check if you have obtained approval from PF authorities for the exemption of PF contribution for those drawing more than a 6500 basic salary. If not, you will have to contribute to the PF accordingly.
From India, Visakhapatnam
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There is a provision in the PF Act where an employee who has already received the terminal benefits of PF, gratuity, and superannuated, PF deduction can be made at the option of the employee. Refer to Section 69(1) and read the definition 2(f).
From India, Mumbai
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From India, Mumbai
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Dear Friends,
I do agree with Mr. Sekhar. My CMD is around 81, and even now we have been contributing to his PF Account. It is up to the discretion of the management and its policy. As some of my friends said, once an employee attains the superannuation age of 58/60, the management can discontinue contributing to PF even though the employee continues in service. As another friend suggested, even though the salary is more than 6500, the contribution can be limited to Rs. 6500/- only.
Hope this is clear.
G.K. Manjunath
From India, Bangalore
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I do agree with Mr. Sekhar. My CMD is around 81, and even now we have been contributing to his PF Account. It is up to the discretion of the management and its policy. As some of my friends said, once an employee attains the superannuation age of 58/60, the management can discontinue contributing to PF even though the employee continues in service. As another friend suggested, even though the salary is more than 6500, the contribution can be limited to Rs. 6500/- only.
Hope this is clear.
G.K. Manjunath
From India, Bangalore
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Hi,
Unless the member of the EPF has withdrawn or has crossed the age of retirement, at least 58 years of age, he has to continue as a member but subject to the ceiling of employer contribution at the pay of Rs. 6500. However, beyond the above provision of the Act, everything depends on the company policy but subject to better terms for the employee.
Regards.
From India, Mumbai
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Unless the member of the EPF has withdrawn or has crossed the age of retirement, at least 58 years of age, he has to continue as a member but subject to the ceiling of employer contribution at the pay of Rs. 6500. However, beyond the above provision of the Act, everything depends on the company policy but subject to better terms for the employee.
Regards.
From India, Mumbai
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Mere withdrawal of earlier PF will not be enough. He/she should have withdrawn the amount:
1. on retirement after attaining 55 yrs.
2. on migration from India.
Withdrawal for any other reason is not entitled for exemption, even if the salary is above Rs 6500 per month.
Varghese Mathew
From India, Thiruvananthapuram
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1. on retirement after attaining 55 yrs.
2. on migration from India.
Withdrawal for any other reason is not entitled for exemption, even if the salary is above Rs 6500 per month.
Varghese Mathew
From India, Thiruvananthapuram
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In my opinion, she can be treated as an excluded employee at this stage under the following conditions:
1. If she is more than 58 years of age.
2. If she has withdrawn her PF benefits from her earlier employment.
3. If her Basic wage is more than Rs. 6500/- per month in the new employment.
In case she was a member of EPF and has not withdrawn the contributions, now she can't be excluded, at least until the age of 58 years.
AK Chandok
RPFC (Retd.)
From India, Chandigarh
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1. If she is more than 58 years of age.
2. If she has withdrawn her PF benefits from her earlier employment.
3. If her Basic wage is more than Rs. 6500/- per month in the new employment.
In case she was a member of EPF and has not withdrawn the contributions, now she can't be excluded, at least until the age of 58 years.
AK Chandok
RPFC (Retd.)
From India, Chandigarh
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