Hi, Can employees have the option to opt out of PF especially the IT companies who are under Shops&Establishments act? Pls let me know. thanks!
From India
From India
Yess they can, both the employee and the employer should agree for this and they can go for PF enrolment.
From India
1From India
I doubt. Actually, PF applicability organization can not opt for PF contribution from either side;employee and employer. Its an Act under Social Security of employee whether employed direct as employee or indirect as contract worker. *Go through Act.*
From India, Ahmadabad
From India, Ahmadabad
Yeah Agree.... I meant, if basic salary is more than 6500 PM then they can opt for the enrollment, with mutual consent.
From India
From India
Hi,
what if the employee is ok to opt out and the employer doesn't want the employees to opt out.There has been a situation where in we had a PF audit and the PF comissioner said not to entertain employees to be given an option of opting out.
So in that case,we would have to have a justification to our employees.
Do we have any such proof or evidence as per act?
Do let me know on this.
Thanks in advance!
Regds,
Anithaa
From India
what if the employee is ok to opt out and the employer doesn't want the employees to opt out.There has been a situation where in we had a PF audit and the PF comissioner said not to entertain employees to be given an option of opting out.
So in that case,we would have to have a justification to our employees.
Do we have any such proof or evidence as per act?
Do let me know on this.
Thanks in advance!
Regds,
Anithaa
From India
An establishment covered by PF Act will not go out of coverage at any cost. Similarly, an employee once covered can not opt out of coverage. Certainly, an establishment employing less than 20 (it is going to be 10) will not be covered and similarly, an employee whose basic + DA at the time of joining or at the time the coverage is made applicable to the establishment is more than Rs 6500 shall be excluded from coverage. Whereas, an employee once covered will be covered so long as he is within that establishment. These provisions are applicable to any scheduled employment for which IT is no exemption.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu,
Please help me with a query. I have all the employees covered under PF. Now to increase the takehome management have decided to offer people who will join from now on in certain departments whose basic salary is more than 6500 without PF.
My doubt is can I have both the kind of employees. For the same CTC one employee without PF and one employee with PF. But the act says that employee can opt out of PF if his basic is more than 6500. So it is to the consent of both employer and employee. So if any employee wants to opt out than we have to give him structure without PF and if employee wants PF then we have to give structure with PF. Am I right in saying so
Please this is urgent.
From India, Bangalore
Please help me with a query. I have all the employees covered under PF. Now to increase the takehome management have decided to offer people who will join from now on in certain departments whose basic salary is more than 6500 without PF.
My doubt is can I have both the kind of employees. For the same CTC one employee without PF and one employee with PF. But the act says that employee can opt out of PF if his basic is more than 6500. So it is to the consent of both employer and employee. So if any employee wants to opt out than we have to give him structure without PF and if employee wants PF then we have to give structure with PF. Am I right in saying so
Please this is urgent.
From India, Bangalore
Hi
you are complicating your work and you will face lots of trouble if the option is given out for employees. For example if 100 joined in a month and 60 wants PF and 40 doesnt, how will you track it, so its better to decide by the management for only those who crossed the limit (newly joined) and not for the existing ones. Again a complication here, if your newly joined employee feels that the benefit is not given them is also creates problem.
My question here is, why you think of opting out of PF??? Now a days, PF is only saving for many people as the market prices are going high. so pls consider and never think of letting out of PF.
If you have taken a decision, yes there should be mutual concern from Employer & employee for opting out of PF and you can remove the PF component from your pay structure.
you are complicating your work and you will face lots of trouble if the option is given out for employees. For example if 100 joined in a month and 60 wants PF and 40 doesnt, how will you track it, so its better to decide by the management for only those who crossed the limit (newly joined) and not for the existing ones. Again a complication here, if your newly joined employee feels that the benefit is not given them is also creates problem.
My question here is, why you think of opting out of PF??? Now a days, PF is only saving for many people as the market prices are going high. so pls consider and never think of letting out of PF.
If you have taken a decision, yes there should be mutual concern from Employer & employee for opting out of PF and you can remove the PF component from your pay structure.
Dear Christopher,
I have many complications here. Employees with same CTC will have 2 different takehomes. However I cannot do anything with the employees who are already contributing to PF so if after revision their basic crosses 6500, I have to continue deducting the PF but their takehome will be lesser than other who have joined new opting out of PF.
But there is difference of 1000 rs take home in doing so which will now help me in hiring people.
From India, Bangalore
I have many complications here. Employees with same CTC will have 2 different takehomes. However I cannot do anything with the employees who are already contributing to PF so if after revision their basic crosses 6500, I have to continue deducting the PF but their takehome will be lesser than other who have joined new opting out of PF.
But there is difference of 1000 rs take home in doing so which will now help me in hiring people.
From India, Bangalore
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PF for foreign employees 1.10.08.pdf