Hai all
I am working as an Executive HR in a Private company at Hyderabad. I have a doubt in PF. “Is there any possibility to get exemption/ non-coverage from PF Act to any employee?” Please tell me or mail me at
I hear that if any employee getting more than 6500/- salary (Basic + DA) can be exempted from the PF Act. (Not only from Pension Scheme), if it is correct please refer me.
Thank you,
Krishna Prasad
From India, Hyderabad
1I am working as an Executive HR in a Private company at Hyderabad. I have a doubt in PF. “Is there any possibility to get exemption/ non-coverage from PF Act to any employee?” Please tell me or mail me at
I hear that if any employee getting more than 6500/- salary (Basic + DA) can be exempted from the PF Act. (Not only from Pension Scheme), if it is correct please refer me.
Thank you,
Krishna Prasad
From India, Hyderabad
Exemption from PF means exemption from the operation of various provisions of the Employees Provident Fund and Misc. Provisions Act. As such the company which provides for better superannuation schemes to employees than what are provided under the EPF Act may get exemption from EPF and Pension Schemes.
An employee whose salary exceeds Rs 6500 at the time of joining the company shall be excluded from PF coverage. That means, if an employee joins an establishment which is covered by EPF and his salary (Basic +DA) exceeds Rs 6500, then he may be excluded and for whom no contribution need be remitted. It does not mean that an employee who is already a member will also be excluded once his salary becomes more than Rs 6500.
Regards,
Madhu.T.K
From India, Kannur
An employee whose salary exceeds Rs 6500 at the time of joining the company shall be excluded from PF coverage. That means, if an employee joins an establishment which is covered by EPF and his salary (Basic +DA) exceeds Rs 6500, then he may be excluded and for whom no contribution need be remitted. It does not mean that an employee who is already a member will also be excluded once his salary becomes more than Rs 6500.
Regards,
Madhu.T.K
From India, Kannur
Thanks Mr.Madhu so if any employee’s salary(Basic+Da) above 6500/- at the time of Joining he is excluded from PF coverage, then is there any form required for this exemption?
From India, Hyderabad
From India, Hyderabad
No declaration is required to be filled. However please get form 11 from the new employee which declares that he has not been a member of EPF earlier. This declaration is for your file only and need not be sent to EPF
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
For Eg: We are paying 3600 flat to our staff and paying PF for that amount. We are taking it as Basic Salary . No Allowences paid etc. Now we want to increase the salary to 3850. Is that possible w/o having extra liability on PF.
From India, Palakkad
From India, Palakkad
Normally HRA is excluded from the PF qualifying salary. But if the basic salary on which PF is deducted and contributed is very low then there is every chance of inclusion of HRA also to the PF qualifying salary because the PF authorities are working on a formula whereby the employer will be directed to pay PF at least on the minimum wages fixed by the government. Therefore, ensure that you contribute PF on at least 70% of the total salary.
If your present PF qualifying salary is Rs 3600 you can maintain it and the enhancement portion of Rs 350 can be given in the form of some other allowances like HRA, Conveyance etc. If possible avoid Special Allowance which may have different interpretations before the PF authorities.
Special allowance may be interpreted as dearness allowance given to compensate the cost of living. While HRA stands for house rent allowance, conveyance Allowance means allowance for meeting expenses of commuting to office and back, CCA stands for city compensatory allowance special allowance has no direct bearing on any expense to be met by the employee. Therefore, there is a chance of treating it as part of salary and dearness allowance.
Regards,
Madhu.T.K
From India, Kannur
If your present PF qualifying salary is Rs 3600 you can maintain it and the enhancement portion of Rs 350 can be given in the form of some other allowances like HRA, Conveyance etc. If possible avoid Special Allowance which may have different interpretations before the PF authorities.
Special allowance may be interpreted as dearness allowance given to compensate the cost of living. While HRA stands for house rent allowance, conveyance Allowance means allowance for meeting expenses of commuting to office and back, CCA stands for city compensatory allowance special allowance has no direct bearing on any expense to be met by the employee. Therefore, there is a chance of treating it as part of salary and dearness allowance.
Regards,
Madhu.T.K
From India, Kannur
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