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Hi friends,
I want to know one thing
An establishment covered under EPF & MP Act.
Establishment deducting PF and paying Employer share on the full basic.
One new employees joins the est. He is not ready to become member of Employees Provident Fund. He has signed Form 11 under the ACT and even verified from the old employers that he had never been member of act.
If the establishment doesn't deduct the epf, will it be right (Box establishment deducting epf for all the employees whether the basic is 5000/-, 10,000/- or 50,000/- )

From India, Delhi
Thank You Mr.Kapil.Can you clarify my doubt as to is there any claws by which an educational institution which employs more than 20 employees,though a few are in the probation period can be exempted from the purview of PF Act

Mr. Kapil's reply is on the line. Even if a employee joins a new employer and earlier he was covered under PF he will remain under the scheme even his basic will remain above the prescribed limit for PF.
From India, Delhi
Hi Kapil
I have recently joined a new call center company which has just started in Oct'06.
The company is only registered under firms formation. It has to go under STPI registration.
My question is
I want to know when and at what stage is it necessary to have PF for the employees.
What stage it will become mandatory for us to have that. we are having approx 15- 20 employees at the moment. ANd by Jan'07 there may be addition of at least 10-25 more employees
Also is there any direct no or an email where i can reach you.

HI Nagendra,
I think you are talking about ESI and not PF. There is no limit for PF dedcution.
Any organisation is exempt from filing PF returns if all its employee's BASIC salary is upwards of Rs. 8500 pm (don't know if this has been revised).
There has been a recent amendment to the ESIC Act where all employees earning upto Rs. 10000 pm will come under the purview of this Act.
I'm attaching a notification which migh be of some help.

From India, Pune

Attached Files
File Type: doc employees_state_insurance_amendement_812.doc (24.5 KB, 154 views)
File Type: doc employees_state_insurance_amendement_528.doc (24.5 KB, 89 views)

Dear Mr.Nagendra and all Colleagues !

With ref to the question l remember last time, One reply we have given from this Forum to Mr.YSNMurty, of Vishakapatnam, AP.

Generally, the Provident fund is a statutory, compulsory saving for the benefit of the Members under the scheme refers to Social Security.

In case the Member is crossed Rs.6500/ ceiling also he shall have to be the Member under the PF Act. But most of the Employers now a days deducting the PF under the Principle of Equity ie they deduct on the total Basic+ DA whatever they used to draw, on each month @ 12% though the wages are over and above 6500/ ceiling.

for ex: A recovery on Rs.6500/ wages( both employer 12+ employee 12 share,) Rs.541/ shall have to bifurcated to Family Pension a/c( 8.33%) and the balance amout be credited to Provident fund A/c.(12%+3.67%).

Wages above Rs.6500/ also the Pension is only Rs.541/ fixed, but the remaining entire amount will be remitted to the Member's PF A/c.

A fresh employee whose wages are above 6500/ is not required to become a Pf Member, if he is not already holding the PF membership. Otherwise, if both the Employer and employee are willing, he can become a PF subscriber/member by exercising option.

I hope this clarifies your doubt on the issue.

with regards,

Narayana Murty


Cell No: 9394712629

Office No: 040-23431552

From India, Visakhapatnam
hi my dera friends thanking very much to one and alla & also to citehe. bze sharing of views and doubts and giveing suggestion. once again thankful to all from Nagendra
From India, Hyderabad
Dear Mr. Nagendra,
Considering your organization has covered under EPF Act 1952. then
1. The employee need not to be covered under said act if his pf salary crossess Rs. 6500/-,
2. BUT if he is already a member of EPF and having active PF account no. (may be with earlier organizaton), and submits proofs inthis regard, THE EMPLOYEE SHOULD BE COVERED UNDER EPF ACT THOUGH HIS SALARY MORE THAN SAID CEILING
best wishes
jaya krishna

Hi All,
I would like to say that there are two different conditions for employee’s eligibility for PF contribution.
1. Old Employee - If an employee is working at 6400/- p.m. but due to increment the salary increased up to 7200/- p.m., even then we have to comply with the provisions of P.F. at least up to the upper limit for contribution i.e. 6500/-p.m.
2. New Employee – If any employee joins your organisation and his basic salary is more than 6500/- p.m. and he/she doesn’t wish to be a member of PF Scheme, then you have to get a form filled by the Employee i.e. Form –11. A copy of the same is to be submitted with PF Commissioner.
If your company comes under the preview of PF Act then you have to comply with the above laws to avoid any penal action.
Hope it will clear your doubts regarding employee’s eligibility in respect to PF.
Rajeev Chaudhary

From India, Chandigarh
Dear friends,

I am attaching the details from Guide to EPF Member that " who is eligible to become a PF member "

1. All employees includes employees employed thru contractors, daily rated piece rated, temporary, casual etc.

2. Excluded employees - a. Apprentice

b. Employee drawing the wages (Basic + DA Only) beyond Rs.6500/- as on the date of joining the Establishment. If the wages of an employee is increased beyond Rs.6500 during the course of employment and after becoming a member of EPF, such employees are not to be treated as excluded employees. In such case his contribution shall be restricted to his wages upto Rs.6500/-.

c. Employees whose EPF was once fully settled after 55 yrs of age or on permanent settlement abroad.

3. An individual PF member can seek exemption from the membership of EPF Scheme, so as to join the company's PF. The member may apply to the Commissioner thru the employer.

So, as per the above guidelines, the membership is not optional. It is statutory.


From India, Chennai

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