Hi, I know that employees in middle and highe rrange of salaries can opt not to take PF and get full salary in hand.
What are the benefits and losses in this case and what is the procedure.
Thanks
Arpana
From India, Delhi
What are the benefits and losses in this case and what is the procedure.
Thanks
Arpana
From India, Delhi
The EPF Act doesnot mention about 'middle' or 'high' range of salary but it only says about 'number of employees' and ' amount of salary per month' As such establishments employing 20 or more are covered under the Act and those employees whose salary (basic + DA) AT THE TIME OF JOINING doesnot exceed Rs 6500 are covered. Those whose salary at the time of joining exceeds Rs 6500 can also become members of the PF but it is not mandatory, means, they can opt out. However, an employee once covered will continue to be covered irrespective of his salary. Therefore, if the company wants to give coverage to all employees, then it should be decided right at the time the PF is enforced otherwise it will become mandatory to give coverage in future. You can not have two treatment in the same organisation like those drawing more salary but with PF and those even though drawing more than the ceiling but without PF.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
Dear Sir,
Please let me know the following :
1. Who are 'excluded employees?'
2. Which clause of PF Act tells about it?
3. Is it optional for any employee earning basic salary more than Rs 6500/- per month to be/ outside of PF?
4. Please mention any relevant clause to this in PF Act.
Kindly treat it as urgent as I have been receiving many querries on the issue and am not finding any relevant clause in the act.
Regards
Subhabrata Dasgupta
From India, Calcutta
Please let me know the following :
1. Who are 'excluded employees?'
2. Which clause of PF Act tells about it?
3. Is it optional for any employee earning basic salary more than Rs 6500/- per month to be/ outside of PF?
4. Please mention any relevant clause to this in PF Act.
Kindly treat it as urgent as I have been receiving many querries on the issue and am not finding any relevant clause in the act.
Regards
Subhabrata Dasgupta
From India, Calcutta
The term excluded employee has been defined in para 2 (f) of the Employees Provident Fund Scheme, 1952. Please note that there is no such definition in the Employees Provident Fund and Miscellaneous Provisions Act, 1952.
As per the scheme any employee who has made withdrawal of PF,
any employee whose salary at the time of joining exceeds Rs 6500,
any apprentice (engaged under the provisions of Apprentice Act) are excluded employees.
The provisio relating to contribution is given para 29 of the scheme and membership is given in para 26 of the scheme. It is always desirable to read the Rules, Schemes or Regulations framed simultaneously with the Act.
Regards,
Madhu.T.K
From India, Kannur
As per the scheme any employee who has made withdrawal of PF,
any employee whose salary at the time of joining exceeds Rs 6500,
any apprentice (engaged under the provisions of Apprentice Act) are excluded employees.
The provisio relating to contribution is given para 29 of the scheme and membership is given in para 26 of the scheme. It is always desirable to read the Rules, Schemes or Regulations framed simultaneously with the Act.
Regards,
Madhu.T.K
From India, Kannur
Dear All,
I have a new joiner who wish to opt out of Provident Fund Scheme. All our other staff is enrolled in the scheme. Is it possible to allow her to opt out? Is there any clause that states that employee can opt out of PF system. She want the cash in hand instead of the contribution. How does the salary break up works. Please note basic salary is Rs 10,000 plus.
Thank you and hoping to receive various response.
From Singapore
I have a new joiner who wish to opt out of Provident Fund Scheme. All our other staff is enrolled in the scheme. Is it possible to allow her to opt out? Is there any clause that states that employee can opt out of PF system. She want the cash in hand instead of the contribution. How does the salary break up works. Please note basic salary is Rs 10,000 plus.
Thank you and hoping to receive various response.
From Singapore
Hi,
As the basic + da per month is exceeding the coverage limit, the employee need not have to be covered (as you said all other employees are covered - but there is no mention of their salaries)
Once she is not covered, the same should not reflect in the salary break up also.
To be on the safer side, get this in writing this from the employee that she is not interested in getting covered under.
-Saravana Rajan
From India, Mumbai
As the basic + da per month is exceeding the coverage limit, the employee need not have to be covered (as you said all other employees are covered - but there is no mention of their salaries)
Once she is not covered, the same should not reflect in the salary break up also.
To be on the safer side, get this in writing this from the employee that she is not interested in getting covered under.
-Saravana Rajan
From India, Mumbai
Hello All,
If an employee whose salary is higher than 6500 has opted for PF on their joining and after 3 to 4 months wants to opt out of PF, is it possible to do so?
If yes, what is the procedure? which are the forms to be filled?
If not possible in the middle of the financial year, then can the employee opt out during the begining of the new finanacial year? If yes, what is the procedure? which are the forms to be filled?
Looking forward to detailed guidance on this.
Thanks
Khyati
From India, Ahmadabad
If an employee whose salary is higher than 6500 has opted for PF on their joining and after 3 to 4 months wants to opt out of PF, is it possible to do so?
If yes, what is the procedure? which are the forms to be filled?
If not possible in the middle of the financial year, then can the employee opt out during the begining of the new finanacial year? If yes, what is the procedure? which are the forms to be filled?
Looking forward to detailed guidance on this.
Thanks
Khyati
From India, Ahmadabad
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