Hello friends and seniors,
We are providing PF facility to all our staff members. However, one of the new joiners in our organization does not want PF facility. The gross salary of that employee is 7000/-. Is it allowed or not? If yes, then what is the procedure to opt out?
If no, is it the right approach to make PF facility compulsory for the employee?
I need your guidance urgently.
Regards,
Madhura
From India
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12We are providing PF facility to all our staff members. However, one of the new joiners in our organization does not want PF facility. The gross salary of that employee is 7000/-. Is it allowed or not? If yes, then what is the procedure to opt out?
If no, is it the right approach to make PF facility compulsory for the employee?
I need your guidance urgently.
Regards,
Madhura
From India
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In my view, if his Basic and DA is upto Rs.6500/-, he has no choice except to enroll for PF facility as per EPF Act. Regards SK
From India, Delhi
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From India, Delhi
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You have to educate him about the benefits of the EPF & Pension scheme as a part of welfare and retention. Some companies do not want to offer this scheme to employees drawing a salary above 6500/-.
Regards, Sathya
From India, Mumbai
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Regards, Sathya
From India, Mumbai
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Dear Madhura, Yes If Basic is less then 6500/- then it is mandatory to employee. You have to tell him the PF benifits. Regards, sheela
From India, Pune
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From India, Pune
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Since he is a low-paid employee, he wants more in-hand salary. His basic pay may be reduced, and other allowances except DA may be enhanced. By doing this, he will have to contribute less amount towards EPF. He should be informed about the benefits of EPF.
Regards,
SK
From India, Delhi
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Regards,
SK
From India, Delhi
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