I am getting a salary of Rs. 32,000.00, and from April, the company stopped deducting the PF contribution from us. They mentioned that the norms have changed and staff earning above Rs. 15,000.00 will not receive the benefit of PF.

When we asked for the refund of the amount in PF, they handed over a form stating that we are resigning from the job starting from April. However, we are still receiving a direct debit salary in the bank account.

Employees are still confused about the norms of PF, and companies seem to be taking advantage of the situation. Please provide clarification on this matter.

From India, Kolkata
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Dear Adya1112,

Once you become a member of EPF, you remain a member of EPF as long as you are employed, even if your salary exceeds the threshold limit of Rs. 15,000. Your company is engaging in unfair practices by accepting your resignation and reappointing you without EPF benefits.

Thank you.

From India, Mumbai
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Actually, even that would not work. The rule is that the starting salary of the person must be above ₹15,000, and he must not be a member of the PF scheme at the time of joining the job. In case of a complaint to the PF authorities, the employer would be in a problem.


From India, Mumbai
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Dear Adya,

As Mr. Korgaonkar K A mentioned, even if the salary exceeds the ceiling limit, PF remittance cannot be stopped. This is why the employer asked you to submit your resignation. Therefore, please continue in service. If the employer is not remitting PF, please contact the relevant EPF Enforcement Officer.

Abbas.P.S

From India, Bangalore
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Definitely an unfair practice by the employer. As mentioned in other posts, an employee will continue to be covered under EPF & MP Act if during the course of employment the Basic Salary and D.A. go above Rs. 15,000/- (earlier Rs. 6,500/-). If the employee was getting Rs. 32,000/- per month and was covered under EPF before April 2015, the employee will continue to be covered.

By resigning w.e.f. April 2015 and rejoining immediately, there is a problem as an employee can make a closure of PF A/c only if he has been out of the job for two months after resigning from previous employment, and the new employment is in an establishment not covered by EPF.

From India, Kolkata
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Dear Friends,

As rightly pointed out by many of my friends, completely stopping of contribution is unfair labor practices. The Management can restrict their part of contribution to the ceiling amount of Rs. 15,000/-. Kindly refer to the Apex court judgment in Marathwada Gramin Bank Vs. PF authorities. It upholds the decision of the Management to restrict the contribution to the ceiling limit. The affected employees can make a representation to the Management with a copy to the PF authorities to sort out their grievances.

G.K. Manjunath Sr. Manager-HR

From United States, Cambridge
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yes manjunath is right. we can restrict pf amount instead of stopping contribution. your company activities is aginst law.
From India
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Dear Friends,

Once a person has been enrolled as a member of EPF, he remains covered despite an increase in the ceiling limit. Discontinuance of the deduction of PF contribution is illegal; the employer can be held liable to pay the contribution. I agree with the opinions of Mr. Kargaonkar, Manjunath, and others.

R.L. Dhingra
Advocate, Labor Law Consultant
Delhi
09818309937
Email: rld_498@rediffmail.com

From India, Delhi
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PF Act does not restrict contribution by just mere resigning from the job, whether rejoined in the same organization or joined another organization. Once an employee's PF is deducted, the benefits continue irrespective of the salary drawn. Therefore, if a company denies these benefits, someone can make a confidential report to the concerned PF Enforcement Officer, who will surely take action in the best interest of the employee.

Ravindranath
Sr. Manager - HR

From India, Hyderabad
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Hi,

I worked with an organization, Spanco BPO Pvt Ltd, in 2011 and 2012 for 15 months. I was unaware of the PF because it was my first job. After the 6th month, I asked HR about my PF number, and they mentioned it would be provided upon resignation. However, the company suddenly closed without giving any confirmation to the employees. I have sent several emails to the HR department, but there has been no response. I do not have my PF number, and my salary was received via cheque. I have my employee ID and offer letter. Please help me retrieve my PF number.

Moolchand
9811044018

From India, Gurgaon
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