Hi, I am working in nagpur maharashtra in an real estate company here i am working last 8 months and i am an conformed employee of the company ie mine probation period is ended .
my problem is - 2 months back company registered for PF a/c and was willing that every one should deduct PF but few refused including me . as mine basic is above 6500 /- INR i opted out by filling form no 11 now 2 months later we are said that from month of april salary will be deducted with PF amount . And both the contribution will be taken from employee only ie company will not bear any contribution and every one has to deduct it and its compulsory.
so i want to know can a company do this? if yes how to deny the situation and stop them from doing it
From India, Mumbai
my problem is - 2 months back company registered for PF a/c and was willing that every one should deduct PF but few refused including me . as mine basic is above 6500 /- INR i opted out by filling form no 11 now 2 months later we are said that from month of april salary will be deducted with PF amount . And both the contribution will be taken from employee only ie company will not bear any contribution and every one has to deduct it and its compulsory.
so i want to know can a company do this? if yes how to deny the situation and stop them from doing it
From India, Mumbai
Dear Mr. Azhar.a.m.Khan,
Employers can deduct only employees contributions i.e., 12% (Basic+ D.A), if the PF act is applicable to the organization. However, the contribution of the employer can't be deducted from employees salary. The maximum contribution that an employer is bound to make towards PF is Rs 780/- per mensem.
Form 11 is a declaration made by an employee taking up the employment in which the Employees’ Provident Fund and Family Pension Fund Scheme are in force. It absolutely doesn't say that you can opt out of PF.
- It is a form mentioning a simple declaration stating he is a member of PF/not.
- If he has not withdrawn his PF from the previous employer and his salary is more than 6500/- there, he would still remain a member of PF.
- In case if the employee has withdrawn his PF from previous employment and still seeks, he is not entitled for PF Exemption
- If an employee has joined services with a basic+da, 6500/- or more than it, he still can be exempted by filling form-11.
As I said earlier the contribution should be equal
- Employee – 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any) and Employer – 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
Calculation:_
{13.61 % is 3.67 % (PF) + 8.33 % (Pension Scheme) + 1.10 % (Admin. Charges of PF) + 0.5 % EDLI + 0.01 % (Admin Charges of EDLI)}
No, company in any case cannot do this and you may speak to the concerned HR regarding the same.
From India, Visakhapatnam
990Employers can deduct only employees contributions i.e., 12% (Basic+ D.A), if the PF act is applicable to the organization. However, the contribution of the employer can't be deducted from employees salary. The maximum contribution that an employer is bound to make towards PF is Rs 780/- per mensem.
Form 11 is a declaration made by an employee taking up the employment in which the Employees’ Provident Fund and Family Pension Fund Scheme are in force. It absolutely doesn't say that you can opt out of PF.
- It is a form mentioning a simple declaration stating he is a member of PF/not.
- If he has not withdrawn his PF from the previous employer and his salary is more than 6500/- there, he would still remain a member of PF.
- In case if the employee has withdrawn his PF from previous employment and still seeks, he is not entitled for PF Exemption
- If an employee has joined services with a basic+da, 6500/- or more than it, he still can be exempted by filling form-11.
As I said earlier the contribution should be equal
- Employee – 12 % (of Basic + DA & Food concession allowance & retaining allowance, if any) and Employer – 13.61 % (of Basic + DA & Food concession allowance & retaining allowance, if any)
Calculation:_
{13.61 % is 3.67 % (PF) + 8.33 % (Pension Scheme) + 1.10 % (Admin. Charges of PF) + 0.5 % EDLI + 0.01 % (Admin Charges of EDLI)}
No, company in any case cannot do this and you may speak to the concerned HR regarding the same.
From India, Visakhapatnam
The details given by you are sketchy. A comprehensive advice cannot be given based on such sketchy info. However, assuming that you joined the company afresh [that is, you were not employed earlier and contributing to EPF and even if contributing has closed your EPF account before joining this employment] with a pay of more than Rs 6500, you fall under the category of exempted employees as defined in Para 2 (f) of the EPF Scheme,1952. In case you want to become a member of EPF eventhough you are an excluded employee, you have to give a joint declaration alongwith your employer. Once such a declaration is given, the employer has to contribute his share. He cannot make you contribute the employer's share also. This is against Para 31 of the Scheme. Para 31 reads thus:
"Not withstanding any contract to the contrary the employer shall not be entitled to deduct the employer's contribution from the wage of a member or otherwise to recocver it from him.".
From India, Madras
"Not withstanding any contract to the contrary the employer shall not be entitled to deduct the employer's contribution from the wage of a member or otherwise to recocver it from him.".
From India, Madras
Dear Azhar ji,
The response by Bpugazhendhi is very correct and appropriate one. It seems from this response Bpugazhendhi has Thorough knowledge of PF Law. I only add to his response that the title of Para 31 is very clear on your query. It says: Employer’s share not to be deducted from the Members.
From India, Mumbai
The response by Bpugazhendhi is very correct and appropriate one. It seems from this response Bpugazhendhi has Thorough knowledge of PF Law. I only add to his response that the title of Para 31 is very clear on your query. It says: Employer’s share not to be deducted from the Members.
From India, Mumbai
Dear Bpugazhendhi,
I appreciate your response which is very correct and to the point to query.
I had a glance just now to some of the postings by you in the past and found that your postings are very appropriate with due study. Very few members interact in this way in this forum. Keep it up.
I further request you to kindly view the below given link and make your comments.
https://www.citehr.com/455974-no-emp...f-company.html
Tell you frank, I am now totally confused reading all the postings in this thread given in above link therefore I have not participated there. Moreover, my schedule is very tight.
From India, Mumbai
I appreciate your response which is very correct and to the point to query.
I had a glance just now to some of the postings by you in the past and found that your postings are very appropriate with due study. Very few members interact in this way in this forum. Keep it up.
I further request you to kindly view the below given link and make your comments.
https://www.citehr.com/455974-no-emp...f-company.html
Tell you frank, I am now totally confused reading all the postings in this thread given in above link therefore I have not participated there. Moreover, my schedule is very tight.
From India, Mumbai
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Force-field_189 .jpg
HC All - Trainees not covered for PF -2010.pdf