Hi,
Can anyone please confirm for me whether PF is optional for an employee whose take-home pay is 30,000 per month? We are facing an issue where an employee is not willing to avail of the PF benefits. Our total number of employees is 23 members.
Please suggest to me.
From India, Tirupati
Acknowledge(0)
Amend(0)
3Can anyone please confirm for me whether PF is optional for an employee whose take-home pay is 30,000 per month? We are facing an issue where an employee is not willing to avail of the PF benefits. Our total number of employees is 23 members.
Please suggest to me.
From India, Tirupati
Acknowledge(0)Amend(0)
Hi, As per PF rule if any Employe Basic is less than ceiling point-6500 rs then PF deduction is mandatory, if more than ceiling point then its optional.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
It is not like that. If the employee with a salary above 6500/-pm is not already a PF member, he has the option to join or not join PF. If he was a member, he has no option; he has to be in EPF.
Varghese Mathew
09961266966
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Varghese Mathew
09961266966
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
If employees don't want PF Deduction, there is an option of Form 11 (Declaration by a person taking up employment in an establishment in which the Employees' Provident Fund & Family Pension Fund Scheme is enforced). By submitting this form, PF deductions will not be made, and the employer will also not need to contribute to that individual.
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Hi, Mathew don’t address wrongly more than ceiling point he has the option whether he want to join r not. Yes i m agree with kanimsw
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi, Mathew, I would like to know such rule as u told, if he was member than he should be. Please give me any notification,any Clause,Any Article says that please attach.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
AADI & Kanimsw, Please read para 26 along with para 2(f) of Employees Provident Fund Scheme 1952 for answer to your doubt.This was discussed many times in this forum. Varghese Mathew 09961266966
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Hi, Mathew, I went through that. Actually, if an employee has not closed his PF account and has not withdrawn his PF, then he should remain a member. If he has closed the account and withdrawn the money, then he has the option to opt out of the PF through mutual understanding between the employee and the employer.
For Your Reference:
Employees Required to Join the Fund
The following employees are required to join the fund (Para 26 of EPF Scheme):
(i) Every employee employed in or in connection with the work of the factory or other establishment to which the EPF Scheme applies, except an excluded employee drawing a salary exceeding Rs. 6,500.00 p.m. {Para 26(1)}.
(ii) Every employee is required to join the fund from the date of joining the factory or establishment {Para 26(2)}.
(iii) Every excluded employee, on ceasing to be an excluded employee, i.e., makes an application jointly with the employer.
From India, Mumbai
Acknowledge(0)Amend(0)
For Your Reference:
Employees Required to Join the Fund
The following employees are required to join the fund (Para 26 of EPF Scheme):
(i) Every employee employed in or in connection with the work of the factory or other establishment to which the EPF Scheme applies, except an excluded employee drawing a salary exceeding Rs. 6,500.00 p.m. {Para 26(1)}.
(ii) Every employee is required to join the fund from the date of joining the factory or establishment {Para 26(2)}.
(iii) Every excluded employee, on ceasing to be an excluded employee, i.e., makes an application jointly with the employer.
From India, Mumbai
Acknowledge(0)Amend(0)
AADI
Read the definition of excluded employee. Only the employees who withdrew PF on retirement after 55 years or migrating from India for settling abroad can claim as 'excluded' employee, not those who have resigned and withdrew PF.
Varghese Mathew
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Read the definition of excluded employee. Only the employees who withdrew PF on retirement after 55 years or migrating from India for settling abroad can claim as 'excluded' employee, not those who have resigned and withdrew PF.
Varghese Mathew
From India, Thiruvananthapuram
Acknowledge(0)Amend(0)
Hi,
As per PF rules, if an employee's basic salary is below the ceiling point of 6500 Rs, PF deduction is mandatory. If the basic salary is above the ceiling point, then it is optional. However, if an employee has had PF deductions in a previous company, they are eligible or mandatory for PF deduction in their current and future organizations. In the case where an employee is starting their first job with a basic salary higher than Rs 6500, it is optional for them to choose whether they want PF deductions or not.
From India, Udaipur
Acknowledge(0)Amend(0)
As per PF rules, if an employee's basic salary is below the ceiling point of 6500 Rs, PF deduction is mandatory. If the basic salary is above the ceiling point, then it is optional. However, if an employee has had PF deductions in a previous company, they are eligible or mandatory for PF deduction in their current and future organizations. In the case where an employee is starting their first job with a basic salary higher than Rs 6500, it is optional for them to choose whether they want PF deductions or not.
From India, Udaipur
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls