Madhu.T.K
Industrial Relations And Labour Laws
Tsivasankaran
Consultant
Subrato Banerjee
Service, Manager- Hr
Kanaga
Hr Executive
+2 Others

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Hi All,
If an employee has to be exempted from PF deduction, Does the employer have to submit any particular Form to PF office.
Please clarify if there is any special procedure to be followed for exempting an employee from PF deductions.
Hoping for reply,
Thank and Regards,
Kanaga
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All employees who are getting salary (Basic + DA) not more than Rs 6500 employed in an establishment employing 20 employees and covered by EPF Act are required to be covered by the EPF. It is mandatory. The employer cannot exempt any employee. However, if an employee at the time of joining or at the time the EPF is made enforced to the company, is drawing salary more than Rs 6500, he can be excluded from coverage. There is no particular form for getting out of coverage but the registration form itself gives details of salary.
Regards,
Madhu.T.K
By registration, I meant the required records and forms to be furnished for registration initially. Accordingly, particulars of employment showing salary of employees are required to be given. This is sufficient to decide the coverage of employees.
Regards,
Madhu.T.K
Hi,
If an employee is already a member of PF fund, he cannot discontinue the membership by virtue of his Basic Salary going above Rs. 6500/-. In fact once an employee hops to a new organisation he has to submit form 11 declaring he was not a member of PF to come out its purview if his would be employer offers him Basic salary above of Rs. 6500/-
Regards
Subrato
Hi Subrato,
Thanks for your reply, Please do clarify my below Doubts:confused:
Assumption: If an employee is moving from organization A to Organization B and
Case 1: lets say he was paying PF in Organization A (salary below 6500) and if in orgnization B (more than 6500)he does not want PF deductions - Is it possible? Please clarify. If it is possible, What would be the procedure.
Case 2: If he was already exempted from PF deductions in Organization A and he wants the same PF Exemption also in Organization B - Is it possible? Then, what would be the procedure.
Case 3: In Organization A, he was exempted from PF and if he wants to contribute to PF in Organization B, What would be the procedure.
I am totally confused, kindly clarify.
Thanks in Advance,
Regards,
Kanaga
Dear Kanaga

Before proceeding to reply to all your queries, I would like to emphasise on one point....The EPF Act nowhere provides an Option to an employee to be in PF or not. The ceilings are provided for the employer to follow. This is the baisic. Now your queries.

Assumption: If an employee is moving from organization A to Organization B and

Case 1: lets say he was paying PF in Organization A (salary below 6500) and if in orgnization B (more than 6500)he does not want PF deductions - Is it possible? Please clarify. If it is possible, What would be the procedure.

The employee has no option. If the organisation where he is moving cover all employees irrespective of the Wage ceiling ie 6500, he or she will be covered in the new organisation as well. irrespective of the salary.

Case 2: If he was already exempted from PF deductions in Organization A and he wants the same PF Exemption also in Organization B - Is it possible? Then, what would be the procedure.

It is not possible. Organisation A does not cover those getting 6500 and he or she moves to an organisation where they cover all employees, then he or she will also be covered. Employee has no option.

Case 3: In Organization A, he was exempted from PF and if he wants to contribute to PF in Organization B, What would be the procedure.

In organisation he was not covered, organisation B also does not cover those drawing more than 6500, it is not possible for him or her to opt

I hope I am not confusing you

Siva
Hi, Kanaga,

Trust the following will clear your doubts. For your better understanding I am sending my views after each assuption of yours.
Assumption: If an employee is moving from organization A to Organization B and

Case 1: lets say he was paying PF in Organization A (salary below 6500) and if in orgnization B (more than 6500)he does not want PF deductions - Is it possible? Please clarify. If it is possible, What would be the procedure.

Legally he is supposed to continue with PF as he already is a member . But if the employee wants to come out of PF with his Basic going above Rs. 6500/- pm to a new Organisation which is not legal, he can make a false declaration in form 11 that he was not a member of PF to come out of its purview. From the employer side this will act as a guard from PF authority.

Case 2: If he was already exempted from PF deductions in Organization A and he wants the same PF Exemption also in Organization B - Is it possible? Then, what would be the procedure.

Yes, it is possible after he fills in Form no. 11 declaring the same.This is only possible if his Basic Salary was above Rs 6500/- in Organisation A.

Case 3: In Organization A, he was exempted from PF and if he wants to contribute to PF in Organization B, What would be the procedure.

Yes, he can become a member of PF once he joins a new Organisation from his date of Joining. However, he cannnot become a member of PF midway in the same organisation if he opts for the same.

Trust I have been able to clear your doubts. ;-)

Regards

Subrato
My question is Mr. A is an employee of X company and Mr. A was joined in the year 2007 with a Basic salary of rs. 7500/- and he wants not to deduct PF from his monthly salary is it possible? If yeas then How ?
Thnx n regds
Suvashis Basu
as mr. siva said, i must say all the informations given by him is wrong. M sorry to say this but in this community please dont say such a thing about which you are not sure. if Mr. Siva have any problem with my statement can he say under which section and which provision of the PF Act these are said?

My company is registered under PF Act now my employer decides not to contribute pf can my employer exempt the employees from the provision of PF. Can the existing Pf memeber can be considered as Excluded Worker.
Plz Explian
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