Hello everyone,
Could someone please tell me what the procedure is when the PF amount exceeds 15000, and the employee does not wish to contribute to PF? What actions should be taken in this situation?
Thanks & Regards,
Yash Karale
From India, Mumbai
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1Could someone please tell me what the procedure is when the PF amount exceeds 15000, and the employee does not wish to contribute to PF? What actions should be taken in this situation?
Thanks & Regards,
Yash Karale
From India, Mumbai
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1) Employees covered under EPF act
• Any employee who is earning the wages of Rs. 15000/- or less (Current Ceiling limit).
• Any employee who is already covered under EPF Act and due to Increment/Promotion if the wages is increased above than the ceiling limit (Rs. 15000/-) then the employee shall not be exempted. In this case both the contributions is restricted to Rs. 15000/- only.
• Any employee already had EPF account in his/her previous company and due to various reasons if the employee joins the new company and if the new company also has the EPF then that employee is covered under EPF act.
2) Employees exempted under EPF act
• Any employee who joins the company with the higher ceiling limit (Above 15000/-) and if at all that employee is not EPF member previous companies then the particular employee may be exempted from the EPF Act. If at all employee is covered under EPF then both EE & ER contribution (12% of EE share + 12% of ER share = 24%) shall be paid as EPF only and EPS is not applicable to them.
From India, Bangalore
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• Any employee who is earning the wages of Rs. 15000/- or less (Current Ceiling limit).
• Any employee who is already covered under EPF Act and due to Increment/Promotion if the wages is increased above than the ceiling limit (Rs. 15000/-) then the employee shall not be exempted. In this case both the contributions is restricted to Rs. 15000/- only.
• Any employee already had EPF account in his/her previous company and due to various reasons if the employee joins the new company and if the new company also has the EPF then that employee is covered under EPF act.
2) Employees exempted under EPF act
• Any employee who joins the company with the higher ceiling limit (Above 15000/-) and if at all that employee is not EPF member previous companies then the particular employee may be exempted from the EPF Act. If at all employee is covered under EPF then both EE & ER contribution (12% of EE share + 12% of ER share = 24%) shall be paid as EPF only and EPS is not applicable to them.
From India, Bangalore
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Dear Yashavant,
Sh. Jeevarathnam has rightly advised you that if you have been covered under the EPF scheme with your earlier employer, you have no choice but you will be automatically covered under the EPF Act with your new employer. In the process, if the wages are increased above the ceiling limit of Rs. 15,000/-, then the employee and employer contributions will be restricted to monthly wages of Rs. 15,000/- only. If you have withdrawn your PF accumulations while not in any employment and join a new company with a salary above Rs. 15,000/-, then you will be exempt from coverage under the EPF Act.
BS Kalsi,
Member since August 2011
From India, Mumbai
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Sh. Jeevarathnam has rightly advised you that if you have been covered under the EPF scheme with your earlier employer, you have no choice but you will be automatically covered under the EPF Act with your new employer. In the process, if the wages are increased above the ceiling limit of Rs. 15,000/-, then the employee and employer contributions will be restricted to monthly wages of Rs. 15,000/- only. If you have withdrawn your PF accumulations while not in any employment and join a new company with a salary above Rs. 15,000/-, then you will be exempt from coverage under the EPF Act.
BS Kalsi,
Member since August 2011
From India, Mumbai
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Good morning,
With a basic salary of 100,000 plus allowances, EPF contribution by the employer shall be 12%, i.e., Rs 12,000, and the employee contribution Rs 12,000. My point is, is there any limit on the employer for the maximum EPF contribution on their part, or is the employer bound to pay 12% towards EPF contribution on basic plus DA even if the basic pay goes much higher, say above 2 lakhs per month?
Please enlighten on this and any limits under EPF rules, if any, on the maximum EPF amount contribution by the employer. Thanks for your understanding.
Kind regards
From India, Chennai
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With a basic salary of 100,000 plus allowances, EPF contribution by the employer shall be 12%, i.e., Rs 12,000, and the employee contribution Rs 12,000. My point is, is there any limit on the employer for the maximum EPF contribution on their part, or is the employer bound to pay 12% towards EPF contribution on basic plus DA even if the basic pay goes much higher, say above 2 lakhs per month?
Please enlighten on this and any limits under EPF rules, if any, on the maximum EPF amount contribution by the employer. Thanks for your understanding.
Kind regards
From India, Chennai
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Dear Yash,
1) If the employee was already covered under PF and in the new organization joins on a salary higher than the PF ceiling, then he can 'technically' be excluded, but it will require the employee to give a 'false declaration' under Form 11. So the short answer is Yes.
2) If the employee was not covered under PF in his previous employment and joins your organization on a salary above 15,000, then he can give a declaration under Form 11, and he can be exempted. Hence the answer is Yes. In this case, however, there is no false declaration by the employee.
Hope this helps
From India, Delhi
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1) If the employee was already covered under PF and in the new organization joins on a salary higher than the PF ceiling, then he can 'technically' be excluded, but it will require the employee to give a 'false declaration' under Form 11. So the short answer is Yes.
2) If the employee was not covered under PF in his previous employment and joins your organization on a salary above 15,000, then he can give a declaration under Form 11, and he can be exempted. Hence the answer is Yes. In this case, however, there is no false declaration by the employee.
Hope this helps
From India, Delhi
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Hello seniors,
Is anyone able to correct the table below?
| G W | EPF W | EPS W | EDLI W | EPF CONTRI | EPS CONTRI | EPF EPS DIFF | REMITTED | NCP REFUND |
|-----|-------|-------|--------|------------|------------|--------------|----------|------------|
| 30000 | 30000 | 30000 | 30000 | 3600 | 2499 | 1101 | 30 | 0 |
| 9816 | 5800 | 5800 | 5800 | 696 | 483 | 213 | 30 | 0 |
Thank you.
From India, Barmer
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Is anyone able to correct the table below?
| G W | EPF W | EPS W | EDLI W | EPF CONTRI | EPS CONTRI | EPF EPS DIFF | REMITTED | NCP REFUND |
|-----|-------|-------|--------|------------|------------|--------------|----------|------------|
| 30000 | 30000 | 30000 | 30000 | 3600 | 2499 | 1101 | 30 | 0 |
| 9816 | 5800 | 5800 | 5800 | 696 | 483 | 213 | 30 | 0 |
Thank you.
From India, Barmer
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