Hi,
For the past 2 years, I have been working in a corporate company (this is my first job), and it has provided me with PF as my basic salary is less than 6500.
Currently, I am moving to another company where my basic salary is more than 6500. According to the new company's policy, they are not providing PF to employees whose basic salary exceeds 6500.
However, I am interested in continuing my PF account. I requested the company to give me the opportunity, and they said I can continue it, but both the employee and employer contributions should be paid by myself.
Question 1:
I heard that there is an option to transfer the PF account to a personal account so that I can contribute to it. Is this possible? Please let me know.
Question 2:
Although the company agreed to allow me to continue the PF account, they mentioned that both employee and employer contributions should be paid by me. The issue here is that I would have to afford more than 4000 per month, and considering my current situation, I cannot afford such a large amount.
Please provide me with a solution.
From India, Vijayawada
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For the past 2 years, I have been working in a corporate company (this is my first job), and it has provided me with PF as my basic salary is less than 6500.
Currently, I am moving to another company where my basic salary is more than 6500. According to the new company's policy, they are not providing PF to employees whose basic salary exceeds 6500.
However, I am interested in continuing my PF account. I requested the company to give me the opportunity, and they said I can continue it, but both the employee and employer contributions should be paid by myself.
Question 1:
I heard that there is an option to transfer the PF account to a personal account so that I can contribute to it. Is this possible? Please let me know.
Question 2:
Although the company agreed to allow me to continue the PF account, they mentioned that both employee and employer contributions should be paid by me. The issue here is that I would have to afford more than 4000 per month, and considering my current situation, I cannot afford such a large amount.
Please provide me with a solution.
From India, Vijayawada
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Once earlier, you were an EPF member. It needs to be continued with a base salary of Rs 6500, and it is not optional. However, you need to first check if the new employer has a separate social security provident fund.
From India, Moradabad
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16From India, Moradabad
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Pl see: However there is no way that you can continue it on your own.
From India, Moradabad
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From India, Moradabad
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Hi Manu,
I appreciate you sharing your case here. My suggestion is to insist with your employer that you want to continue the PF. Don't mention committing yourself to all contributions, and neither sign nor give your commitment to it. I personally feel it's just an excuse by employers to avoid their obligation by not contributing to PF. Do not discontinue your scheme; it's my strong suggestion to continue it. I discontinued, and I know the loss I am at today.
Besides, yes, you can open your own PF account under NPS. I have attached a wonderful article for your study. Hope it's helpful.
Ukmitra
From Saudi Arabia, Riyadh
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I appreciate you sharing your case here. My suggestion is to insist with your employer that you want to continue the PF. Don't mention committing yourself to all contributions, and neither sign nor give your commitment to it. I personally feel it's just an excuse by employers to avoid their obligation by not contributing to PF. Do not discontinue your scheme; it's my strong suggestion to continue it. I discontinued, and I know the loss I am at today.
Besides, yes, you can open your own PF account under NPS. I have attached a wonderful article for your study. Hope it's helpful.
Ukmitra
From Saudi Arabia, Riyadh
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Dear All,
According to the provisions of the EPF Act and Scheme, a member remains a member until they withdraw their accumulations from the fund. This implies that you will continue to be a member without having to take any action.
From India, Pune
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According to the provisions of the EPF Act and Scheme, a member remains a member until they withdraw their accumulations from the fund. This implies that you will continue to be a member without having to take any action.
From India, Pune
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Mr. Vibhakar has given the correct views. I may add here that under Para 31 of the EPF Scheme, the employer's share is not to be deducted from the members.
Chandok AK
RPFC (Retd.)
Note: The link provided is no longer available.
From India, Chandigarh
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Chandok AK
RPFC (Retd.)
Note: The link provided is no longer available.
From India, Chandigarh
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Hi, sir,
Thank you. This document is very interesting. I have intimated to the employer about the government rule that if an employee has a PF account, then he has to continue it forever. However, they are strongly stating that as per their company norms, they are not providing PF to employees whose basic salary exceeds 6500. What should I do now?
As you mentioned about NPS, is there a way to transfer my current PF account to NPS?
Regards,
Rohit Manoj
Hi Manu,
I appreciate you sharing your case here. My suggestion is to insist with your employer that you want to continue the PF. Do not commit yourself to all contributions and do not sign or give your commitment to it. I personally feel it is merely an excuse by employers to avoid their obligation by not contributing to PF. Do not discontinue your scheme; it is strongly suggested to continue it. I discontinued, and I know the loss I am facing today.
Moreover, yes, you can open your PF account under NPS. I have attached a wonderful article for your study. I hope it is helpful.
Ukmitra
From India, Vijayawada
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Thank you. This document is very interesting. I have intimated to the employer about the government rule that if an employee has a PF account, then he has to continue it forever. However, they are strongly stating that as per their company norms, they are not providing PF to employees whose basic salary exceeds 6500. What should I do now?
As you mentioned about NPS, is there a way to transfer my current PF account to NPS?
Regards,
Rohit Manoj
Hi Manu,
I appreciate you sharing your case here. My suggestion is to insist with your employer that you want to continue the PF. Do not commit yourself to all contributions and do not sign or give your commitment to it. I personally feel it is merely an excuse by employers to avoid their obligation by not contributing to PF. Do not discontinue your scheme; it is strongly suggested to continue it. I discontinued, and I know the loss I am facing today.
Moreover, yes, you can open your PF account under NPS. I have attached a wonderful article for your study. I hope it is helpful.
Ukmitra
From India, Vijayawada
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Hi,
The limit of PF membership is restricted to individuals who draw a salary of Rs. 6500 and beyond. For new employees, the company will not cover amounts exceeding this threshold. If you are joining another company with a salary higher than Rs. 6500, you can request the company to only deduct PF contributions based on Rs. 6500 and consider making additional contributions to Voluntary PF from your end.
Moreover, you can negotiate with the company to increase your salary to accommodate this change.
Eswararao Ivaturi.
From United States, Cupertino
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The limit of PF membership is restricted to individuals who draw a salary of Rs. 6500 and beyond. For new employees, the company will not cover amounts exceeding this threshold. If you are joining another company with a salary higher than Rs. 6500, you can request the company to only deduct PF contributions based on Rs. 6500 and consider making additional contributions to Voluntary PF from your end.
Moreover, you can negotiate with the company to increase your salary to accommodate this change.
Eswararao Ivaturi.
From United States, Cupertino
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Dear All,
Mr. Eswararao Ivaturi's comment is correct. You do not need to pay Rs. 4000/- as PF contribution as per your current basic. You just need to inform your employer to deduct the PF contribution on Rs. 600/-, which will work out to Rs. 780/- employee's contribution and Rs. 885 employer's contribution, including administrative and EDLI. So, the total would be Rs. 1665. Nowadays, no company is paying the employer's contribution; instead, it is added to employees' CTC. Therefore, in most cases, employees are paying both contributions.
Thanks and regards,
Nilesh Soni
9869477332
From India, Mumbai
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Mr. Eswararao Ivaturi's comment is correct. You do not need to pay Rs. 4000/- as PF contribution as per your current basic. You just need to inform your employer to deduct the PF contribution on Rs. 600/-, which will work out to Rs. 780/- employee's contribution and Rs. 885 employer's contribution, including administrative and EDLI. So, the total would be Rs. 1665. Nowadays, no company is paying the employer's contribution; instead, it is added to employees' CTC. Therefore, in most cases, employees are paying both contributions.
Thanks and regards,
Nilesh Soni
9869477332
From India, Mumbai
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Dear All,
Mr. Eswararao Ivaturi's comment is correct. You do not need to pay Rs. 4000/- as PF contribution based on your current basic salary. Simply inform your employer to deduct the PF contribution on Rs. 6500/-, which will amount to Rs. 780/- as employees' contribution and Rs. 885 as employers' contribution, including administrative and EDLI. The total contribution would be Rs. 1665. Nowadays, no company is directly paying the employer's contribution; it is generally included in employees' CTC. Therefore, in most cases, employees end up paying both contributions.
Thanks and regards,
Nilesh Soni
9869477332
From India, Mumbai
Acknowledge(0)Amend(0)
Mr. Eswararao Ivaturi's comment is correct. You do not need to pay Rs. 4000/- as PF contribution based on your current basic salary. Simply inform your employer to deduct the PF contribution on Rs. 6500/-, which will amount to Rs. 780/- as employees' contribution and Rs. 885 as employers' contribution, including administrative and EDLI. The total contribution would be Rs. 1665. Nowadays, no company is directly paying the employer's contribution; it is generally included in employees' CTC. Therefore, in most cases, employees end up paying both contributions.
Thanks and regards,
Nilesh Soni
9869477332
From India, Mumbai
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