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PF Applicability if he changes employer and earns salary more than 6500

vinaykhatloiya Started The Discussion:

Dear All,

Please help!!!

If any employee who was the member of EPF Scheme with his prior employer & his salary was under 6500. But if he changes employer & his salary is more than 7000 with new employer so is the new employer is forced by act to give him EPF benefits or not. (If any employee who has withdrawn his PF)

Regards,


Vinay Kumar
Officer - HR
DSC Ltd.

[ abbasiti ] Member Since: May 2010 (Contributing Member)
Dear Vinay Kumar,

There is no claim for the employee to enroll to PF in the present job. At the same time if employer and employee wish, contribution to Pf may be paid either on a salary of Rs. 6500 or on actual salary.

Abbas.P.S

[ essykkr ] Member Since: Dec 2008 (Contributing Member)
Quote:
Originally Posted by vinaykhatloiya View Post
Dear All,

Please help!!!

If any employee who was the member of EPF Scheme with his prior employer & his salary was under 6500. But if he changes employer & his salary is more than 7000 with new employer so is the new employer is forced by act to give him EPF benefits or not. (If any employee who has withdrawn his PF)

Regards,


Vinay Kumar
Officer - HR
DSC Ltd.
Although this is the rule that once a member will always be member for PF scheme. but as in your example you stated he changed the organisation and his salary is more than Rs 7000/-, if he has settle his account with PF department and withdrawn his PF amount then you can put him in catagory of exempted employees. in that case you need to get signed Form 11 from him.

[ sanjaykaushik51 ] Member Since: May 2009
This is the correct answer for the request and doubt you made hope it will clear your all doubts

[ abbasiti ] Member Since: May 2010 (Contributing Member)
Whether the employee has settled / withdrawn previous PF or not, the new employer has no obligation to enroll him to PF in the next service as his salary is above Rs. 6500. Abbas.P.S

[ vinaykhatloiya ] Member Since: Aug 2007 (Contributing Member)
Dear Sir, Could you please let me know the Section, sub section clause specifying such rules in EPF & Misc Prov. Act 1952. So that i can present before the management. With regards, Vinay Kumar

[ essykkr ] Member Since: Dec 2008 (Contributing Member)
Dear this is the obligation of the employer to enroll a new employee even if he is getting more than Rs 6500/- if he is already a member of the fund. Please go through para 26 to 28 of PF scheme.

[ sapna.ece@gmail.com ] Member Since: Jan 2009 (Contributing Member)
Hi All,

I just join as an HR manager in a infrastructure company which is mainly into excavation work. They are just introducing HR in their company.I have completed my MBA into HR in 201,so i do not have that much practical knowledge of all the work but have theoritical knowledge.

Please help me out in payroll, policies and other things.

[ pawan9891 ] Member Since: Mar 2010
Ceiling limit of salary to deduct th p.f is of rs. 6500 ( only basis salary ) whethe any one earning more than above limit. Pf will be deduct at 6500.

[ dvcshekara ] Member Since: Nov 2009 (Contributing Member)
Dear,

As stated Wage/salary ceiling limit for PF is Rs.6500/- and it is statutory compliance to deduct 12% on Basic+Da+ retaining allowance if any from employee pay and equal share of amount has bt be added to total contribution (24%) in the intial service of the employee. The following points are answer for your arising questions.
1) It is not obligatory on the part of employer to cover employees whos wages/salary is above ceiling limit of Rs.6500/-.
2)If Management agreed to cover:- a) Management may restrict to 12% contribution on Rs.6500/- b) May contribution over and above Rs.6500/-also.
3) If employee salary exceeds ceiling limit for covered employee, he/she will enjoy the benefit till retirement/date of leaving subjected to point no.2
4) If employer doesnot want to contribute over and above ceiling limit for covered emplyee, employee may contribute more towards his contribution as voluntary providend fund.

rgds/
chandru

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