Good Afternoon All,
We faced a new situation. One new joinee's basic salary is 20,000, above the restricted PF wage ceiling. The employee wants to enroll himself in EPF, but the employer does not want to enroll him in EPF on the grounds that his basic salary is above the wage ceiling of 15,000, stating, "We will not enroll you in EPF."
Kindly suggest who is correct as per the Act. Can the employer do this when the employee wants to be enrolled in EPF?
From India, Delhi
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4We faced a new situation. One new joinee's basic salary is 20,000, above the restricted PF wage ceiling. The employee wants to enroll himself in EPF, but the employer does not want to enroll him in EPF on the grounds that his basic salary is above the wage ceiling of 15,000, stating, "We will not enroll you in EPF."
Kindly suggest who is correct as per the Act. Can the employer do this when the employee wants to be enrolled in EPF?
From India, Delhi
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If employer is not interested ask employer that this is out of Employee Policy.
From India, Pune
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From India, Pune
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Thank you Prashant Ji, Is there any provision in EPF that employer can do so? Kindly help
From India, Delhi
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From India, Delhi
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Dear Ramesh,
If an employee is already a member of EPFO, then it is compulsory to enroll the employee on a change of job for EPFO, irrespective of his/her salary. However, the employer has a choice to restrict employer contribution to a maximum of Rs. 15,000. If the employment is fresh and the salary is above the prescribed ceiling limit, then it is not compulsory for the employer to register the employee for EPFO.
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If an employee is already a member of EPFO, then it is compulsory to enroll the employee on a change of job for EPFO, irrespective of his/her salary. However, the employer has a choice to restrict employer contribution to a maximum of Rs. 15,000. If the employment is fresh and the salary is above the prescribed ceiling limit, then it is not compulsory for the employer to register the employee for EPFO.
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Wage-ceiling-ep f-6500-15000-ci rcular-circular .pdf
CiteHR.AI
(Fact Checked)-The employer cannot refuse EPF enrollment based on the salary exceeding the wage ceiling. The EPF Act mandates enrollment for all eligible employees. (1 Acknowledge point)