Can we exempt an employee from coverage of PF if he / she submits self declaration that he/ she does not want the PF Coverage since he is maintaining PPF Account. If so, how do we justify this?
From India, New Delhi
1From India, New Delhi
Dear Ujjal,
It is not possible to exclude him for being a member of PPF account.
He can be excluded when he is drawing a Basic Salary of >6500/ and he is not being a member of EPF before.
S.Sethupathy
From India, Coimbatore
It is not possible to exclude him for being a member of PPF account.
He can be excluded when he is drawing a Basic Salary of >6500/ and he is not being a member of EPF before.
S.Sethupathy
From India, Coimbatore
Dear Sethupathy, we’ll still have to pay PF employer contribution for max. 6500/- even if the employee is drawing more than 6500 p.m., isn’t it?
From India, Mumbai
From India, Mumbai
Dear Sethupathy,
Thank you Sir,for the value add.
One more submission in continuation to the above
I have come across few cases who are not covered under PF after
submitting the self declaration and whose Basic is more than Rs
6,500/- pm at the discretion of Management.
Regards,
Ujjal
From India, New Delhi
Thank you Sir,for the value add.
One more submission in continuation to the above
I have come across few cases who are not covered under PF after
submitting the self declaration and whose Basic is more than Rs
6,500/- pm at the discretion of Management.
Regards,
Ujjal
From India, New Delhi
EPF & MP Act, 1952 covers whole of India except J&K state.
In PF Act, explanation of an employee is detailed below:-
"Contract labour is included but casual labour is excluded for counting the strength of employees. An apprentice is only a learner and not an employee. Trainees cannot be taken as employees. Sweepers and Chowkidar drawing paltry sums per month and not borne on the regular staff sheet are to be excluded from the employment strength. Directors, working partners, managing partners, domestic servants and contractors are not employees. The onus of proving employment strength is on the establishment. Change in ownership is immaterial for the applicability of the Act. Composite factories come within the purview of section"
Hence, an employee has to be necessarily covered under PF, even if his salary exceeds Rs.6500/- per month.
Holder of PPF Account does not mean that he can be exempted from PF.
Thanks & regards
R K Nair
From India, Aizawl
In PF Act, explanation of an employee is detailed below:-
"Contract labour is included but casual labour is excluded for counting the strength of employees. An apprentice is only a learner and not an employee. Trainees cannot be taken as employees. Sweepers and Chowkidar drawing paltry sums per month and not borne on the regular staff sheet are to be excluded from the employment strength. Directors, working partners, managing partners, domestic servants and contractors are not employees. The onus of proving employment strength is on the establishment. Change in ownership is immaterial for the applicability of the Act. Composite factories come within the purview of section"
Hence, an employee has to be necessarily covered under PF, even if his salary exceeds Rs.6500/- per month.
Holder of PPF Account does not mean that he can be exempted from PF.
Thanks & regards
R K Nair
From India, Aizawl
Yes,
Any person joining in an organisation first time as a fresher, can give a letter to the employer stating that he is not intrested in PF enrolment voluntarily AND WHOLE HEARTEDLY, and his salary is above 6500/- per month. He is comes under EXPEMPTED employee under EPF scheme and need not enroll him in EPF SCheme. But if he is already a member in any organisation, he has to cover under EPF scheme.
Regards
R.Palaniswamy
From India, Coimbatore
Any person joining in an organisation first time as a fresher, can give a letter to the employer stating that he is not intrested in PF enrolment voluntarily AND WHOLE HEARTEDLY, and his salary is above 6500/- per month. He is comes under EXPEMPTED employee under EPF scheme and need not enroll him in EPF SCheme. But if he is already a member in any organisation, he has to cover under EPF scheme.
Regards
R.Palaniswamy
From India, Coimbatore
Dear sir if she getting more then 6500/ then she exempt from pf if she is taking less then 6500/ then she can not be exempt from pf. Thanks pawan bhatia 09812585353
From India, Bahadurgarh
From India, Bahadurgarh
As per the PF department clarification, if any employee is getting basic salary more than Rs.6500/- per month, then against his declaration (as per Form 11) can opt out of PF bracket.
But If he had the PF in earlier company and not withdrawn then he need to added to the PF bracket.
From India, Bangalore
But If he had the PF in earlier company and not withdrawn then he need to added to the PF bracket.
From India, Bangalore
Mr. Ujjal,
PF Scheme is a social security scheme extended to the whole of India. Here I would like make a mention as far as ceiling and exepmtion are concerned.
a. Rs. 6500/ pm is the wage ceiling up to which the contributions can be made both by employees and employer. In case both the employees and the employer want to contribute over and above the wage ceiling, there is no bar.
b. No employee can exempted from the scheme. In case a person covered under the scheme, benefited and more than 58 years of age may be exempted from the coverage. In the same way, a person not covered under the scheme, no benefit received and more than 58 years of age, if he joins an establishment which is covered under the scheme, then he should also be covered under the scheme.
palani
From India, Tiruppur
PF Scheme is a social security scheme extended to the whole of India. Here I would like make a mention as far as ceiling and exepmtion are concerned.
a. Rs. 6500/ pm is the wage ceiling up to which the contributions can be made both by employees and employer. In case both the employees and the employer want to contribute over and above the wage ceiling, there is no bar.
b. No employee can exempted from the scheme. In case a person covered under the scheme, benefited and more than 58 years of age may be exempted from the coverage. In the same way, a person not covered under the scheme, no benefit received and more than 58 years of age, if he joins an establishment which is covered under the scheme, then he should also be covered under the scheme.
palani
From India, Tiruppur
Dear ALL Senior
Greeting of the day !!!
i have one confusion i if someone is eligiable under pf he/she got the promotion also salary increement can he/she exmpet to pf same card or code no. before increement his/her basic less then 6500/- now his/her basic more then 6500/-.it can happen or not.
Thanks
From India, Gurgaon
Greeting of the day !!!
i have one confusion i if someone is eligiable under pf he/she got the promotion also salary increement can he/she exmpet to pf same card or code no. before increement his/her basic less then 6500/- now his/her basic more then 6500/-.it can happen or not.
Thanks
From India, Gurgaon
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