Hello
I have some questions related to PF:
1) Co already contributing employer share on Rs 6500 & above. Can they limit their contribution to Rs 6500?
2) In pt No 01 can the company totally stop paying contribution since the employees are anyway above Rs 6500?
3) If Company is paying as per Pt no 1 for all old employees, can it exclude new employees (drawing above Rs 6500) from liability.
4) If answer to Pt 1,2,3 is YES then what formalities should be done to ensure compliance?
Would appreciate a point by point reply for bringing in clarity
From India, Aurangabad
14I have some questions related to PF:
1) Co already contributing employer share on Rs 6500 & above. Can they limit their contribution to Rs 6500?
2) In pt No 01 can the company totally stop paying contribution since the employees are anyway above Rs 6500?
3) If Company is paying as per Pt no 1 for all old employees, can it exclude new employees (drawing above Rs 6500) from liability.
4) If answer to Pt 1,2,3 is YES then what formalities should be done to ensure compliance?
Would appreciate a point by point reply for bringing in clarity
From India, Aurangabad
Company can restrict the PF contributions to 12% of Rs 6500 even if it was being contributed at a higher amount. This reduction in PF qualifying wages which is not permitted as per section 12 of EPF & MP Act will not stand as the PF Organisation has no right to demand contribution on an amount over 6500. This was decided in a Supreme Court verdict in Maratwada Gramin Bank case in 2012.
An employee once covered by PF should continue his contribution till he leaves the organisation or or withdraws his PF accumulations. Therefore, the company cannot stop contributing PF in respect of those who have more than 6500 as PF qualifying salary. It can, however, restrict contribution to 12% of 6500.
An employee whose PF qualifying salary exceeds Rs 6500 at the time of joining the company can be excluded from coverage. However, if the new employee has been a PF member while at his previous company and when he left the company, he has not withdrawn the accumulations, then the present company is liable to give him coverage. That means an existing PF member should be given coverage whereas a new joinee who has not been covered by PF earlier can be excluded if his PF qualifying salary exceeds Rs 6500. In such cases the employer should get form 11 from the new joinee which declares if he was a PF member or not.
Madhu.T.K
From India, Kannur
An employee once covered by PF should continue his contribution till he leaves the organisation or or withdraws his PF accumulations. Therefore, the company cannot stop contributing PF in respect of those who have more than 6500 as PF qualifying salary. It can, however, restrict contribution to 12% of 6500.
An employee whose PF qualifying salary exceeds Rs 6500 at the time of joining the company can be excluded from coverage. However, if the new employee has been a PF member while at his previous company and when he left the company, he has not withdrawn the accumulations, then the present company is liable to give him coverage. That means an existing PF member should be given coverage whereas a new joinee who has not been covered by PF earlier can be excluded if his PF qualifying salary exceeds Rs 6500. In such cases the employer should get form 11 from the new joinee which declares if he was a PF member or not.
Madhu.T.K
From India, Kannur
Dear Madhu Sir As always, you have given enough clarity to understand the matter. But I have not found any Form 11 in the PF Act or Schemes. Is this Form still in use?
From India, Aurangabad
From India, Aurangabad
Yes, it is not a form to be sent to EPFO but to be kept in the office for our record and in case the EPF Enforcement Officer asks about any excluded employee we can show it and establish that the excluded employee has not been a member of PF earlier. Form 11 is attached for reference.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
can anyone guide me in the point whether PF contribution can be stopped when an employee attains the age of 58. Whether the organisation in a practice of keeping the employees employed even after the age of 70 years, their PF to be deducted?
From India, Mumbai
From India, Mumbai
PF Contribution can not be stop even otherwise if the age of employee exceed 58 years, in such a situation, the All contribution i.e 24% shall be deposited to his PF Account only. Pension Account Fund shall be diverted to PF account fund.
Yes, if the employee has resigned and withdrawn his all accumulations and settled his account, in that case you can keep him out of PF preview, subject to his salary should be more than Rs 6500/-.
Yes, if the employee has resigned and withdrawn his all accumulations and settled his account, in that case you can keep him out of PF preview, subject to his salary should be more than Rs 6500/-.
Thank you for your valuable contribution.
I want to know is there any retirement age for PF?
Can the management retire an employee at the age of 58 or 60, clear all his/her dues (like gratuity, leave en cashment etc) and re-appoint him/her for the next 2 or 5 years?
From India, Mumbai
I want to know is there any retirement age for PF?
Can the management retire an employee at the age of 58 or 60, clear all his/her dues (like gratuity, leave en cashment etc) and re-appoint him/her for the next 2 or 5 years?
From India, Mumbai
There is no retirement age for PF but an employee can not be part of PF Pension Fund after 58 years of age.
If an employer employs a person above 58 years of age, the employer has to contribute his share of contribution of 12% to Provident Fund along with employee's share without bifurcating it as 8.33% to Pension fund and the remaining, ie, 3.67% to Provident Fund.
It is not mandatory that an employee who is getting PF pension (PF pension only) or who has withdrawn PF accumulations should be given PF coverage as stated above. He can be excluded even if his PF qualifying salary is less than Rs 6500.
Please note that exclusion is given only for employees who have withdrawn PF and or are in receipt of PF pension and a person retired from government service who is in receipt of govt. pension, if employed in an establishment after his retirement from govt. service, should be given PF coverage, though not required to contribute towards pension fund.
Madhu.T.K
From India, Kannur
If an employer employs a person above 58 years of age, the employer has to contribute his share of contribution of 12% to Provident Fund along with employee's share without bifurcating it as 8.33% to Pension fund and the remaining, ie, 3.67% to Provident Fund.
It is not mandatory that an employee who is getting PF pension (PF pension only) or who has withdrawn PF accumulations should be given PF coverage as stated above. He can be excluded even if his PF qualifying salary is less than Rs 6500.
Please note that exclusion is given only for employees who have withdrawn PF and or are in receipt of PF pension and a person retired from government service who is in receipt of govt. pension, if employed in an establishment after his retirement from govt. service, should be given PF coverage, though not required to contribute towards pension fund.
Madhu.T.K
From India, Kannur
can an employee membership during 54 withdrawing after 55 can claim exclusion?
Mem. before 55 , withdraws before 55, can claim exclusion?
Purpose of social security?
6500/- is" pay" and what is the difference between wages under EPF Act and Pay under EPF Scheme?
Why in exclusion only scheme mentions pay? As such there are no court ruling on PAY?
Anil Narayan, adv
From India, Palakkad
Mem. before 55 , withdraws before 55, can claim exclusion?
Purpose of social security?
6500/- is" pay" and what is the difference between wages under EPF Act and Pay under EPF Scheme?
Why in exclusion only scheme mentions pay? As such there are no court ruling on PAY?
Anil Narayan, adv
From India, Palakkad
can an employee membership during 54 withdrawing after 55 can claim exclusion?
Mem. before 55 , withdraws before 55, can claim exclusion?
Purpose of social security?
6500/- is" pay" and what is the difference between wages under EPF Act and Pay under EPF Scheme?
Why in exclusion only scheme mentions pay? As such there are no court ruling on PAY?
Anil Narayan, adv
attribution https://www.citehr.com/460492-pf-lia...#ixzz2TYbh3MiV
From India, Palakkad
Mem. before 55 , withdraws before 55, can claim exclusion?
Purpose of social security?
6500/- is" pay" and what is the difference between wages under EPF Act and Pay under EPF Scheme?
Why in exclusion only scheme mentions pay? As such there are no court ruling on PAY?
Anil Narayan, adv
attribution https://www.citehr.com/460492-pf-lia...#ixzz2TYbh3MiV
From India, Palakkad
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls