Can a company maintain a different salary structure for employees who do not want to be members of EPF? Generally, the basic employee salary is around 47%, with additional allowances provided for children's education, medical expenses, HRA, and transport. However, the company now intends to increase the basic salary percentage from 47% to around 60%, which would exceed the Rs15000 limit for employees who choose not to participate in the PF. Is it permissible for a company to uphold such dual salary structures? If not, please recommend an alternative.
From India, Jaipur
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2From India, Jaipur
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No. New employee joining with basic salary of 15000 or more only can be exempted from EPF. Thank you.
From India, Chennai
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From India, Chennai
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Hi,
Please note, once you have made a contribution to the PF for any employee, then he/she is a lifetime member of the provident fund. You cannot remove their names even after changing the salary structure. Yes, you can keep the basic above 15,000 for the employee joining your organization, and they may be exempted from PF.
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Please note, once you have made a contribution to the PF for any employee, then he/she is a lifetime member of the provident fund. You cannot remove their names even after changing the salary structure. Yes, you can keep the basic above 15,000 for the employee joining your organization, and they may be exempted from PF.
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