Form 11 In P.F. Rule - CiteHR
Karthik Nayudu
Regional Manager - Hr
Hr & Admin
+3 Others

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Dear All, Is it necessary to submit Form 11 under P.f rule for those employees who are not covered under PF as their basic salary is above Rs.6500/-? Is it necessary to submit form 11, if new employee join the company who is getting basic salary above Rs. 6500/- and the company not willing cover under pf? Please share your knowledge as it is very important due to pf inspection conducted in our company. Thanks, shiv Kumar
Hi Shiv, Yes it is necessary to get the form 11 filled and duely signed , but it is not to be submited to PF. It is for the office records and useful if any inspection takes place. Regards, Harshad
Dear Harshad, Really thanks for your reply. Let me know one more thing. If some one who was earlier a pf member in any previous company, but he joined our company and getting basic salary above Rs.6500/- and we don't have the policy of providing pf benefit to the employees geting salary above the limit, is it compulsary to continue the particular emplyees in pf role? Please give ur reply soon. thanks, shiv
Hi Shiv, The person should withdraw his earlier PF, then in the new company he need not be covered under PF. Regards, Harshad
In that case, it is not compulsary to deduct the PF, if PF applicable salary is >6500/- Regards, Jony_M
Dear Jony, I'd like to add what you have said is partially correct. There is a technical hitch involved in the situation as mentioned in the example. If someone who has earliar worked for a company where he was a member of EPF (no matter his basic was less than or more than 6500) and he joins a company where EPF is applicable before completing the two months period.Then in this case technically the employee cannot withdraw his EPF accumulation because his EPF membership is treated as continued (though he is now in seprate company). If you see the Form-19, there is a declaration and employee signs when he fills up the withdrawal form, that he has not worked in an establishment for at least two months where the EPF Act is applicable. Hence, suppose he leaves the company in Dec and joins the new company say in Jan- or even in Feb, technically he is re-employed in a company where the EPF is applicable so if he fills up the withdrawal form he'll sign the "technically wrong" declaration and hence he cannot withdraw his EPF. Further, please refer to the defiination of the excluded employee in Para 2(f) Part(i) and (ii) of the EPF Scheme. According to it the excluded employees are catagorised in two catagories firts are those who have retired as per age or as per infirmity or leaving service before migrating from india for service abroad. (now a third catagory has also been added that of expat (international workers of those countries with which India has signed the "totality agreement")). While the second catagory is of those who are otherwise entitled to become member but their pay is more than Rs.6500/-. Now a narrow clarification of this defination'd only a "fresh" employee who is otherwise entitled can only be left out when his basic is more than 6500, but in our case the employee is already a member of the EPF Scheme and hence he is not a "fresh" case therefore he cannot be held to be in the Part(ii) of the Para 2. So, in my view, following conclusion is drawn, that an employee cannot "theoratically" withdraw his EPF accumulations (practically there is nothing like it, there is no check at the EPF office end with regard to who is going out and who is going in-I have seen cases where the employee resignes from service in Aug and joins the next month and submit the withdrawal form and get the settlement of their old account) and hence cannot remain out of the EPF Scheme in the new company. If someone has different opinion/suggestions, please share. Best Regards Amit Kumar
In my view, which is also the view of PF commissioners/ office based on several interactions:
  1. Irrespective of the salalry of employee organisation has to contribute PF except
    • the number employees are less than 20 (which would soon become 10)
    • company runs an approved PF Trust
    • employee is above declared retirement age
  2. The only option that is available to employee (remember it is employees choice) to restrict his contribution equivalent to Rs 6500 even if his basic plus da is beyond 6500.
  3. Form 11 has to be submitted for all employees in the organisation.
  4. Organisation cannot have salaried employees with exemption to PF subscription in their role for PF purpose. If I recollect earlier only promoter directors where excluded from this. I am not sure is that is still true.

Dear Friend, Thanks for all your suggestions. Now i have come to the conclusion that Form-11 is compulsary and i will do the same. Once again thanks to all shiv kumar
let me know can we implement for the workmen working in various construction site ?
For emp. we are paying the labour more than Rs. 6500. We can show the same labour is out of pf coverage with the supporting FORM 11.
Looking forward you kind advised in this regards.
Thanks .............SM

Dear All, If a new employee enrolled on Rs. 12000/- salary. Company deducting only ESIC and says that PF is not applicable for that employee. Is this right or wrong.. Regards Raj.

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