To all seniors,
Is it feasible that the employees in an organization can have both PF and ESI deductions in their salary. Also please help me to know how are their respective benefits for the employees and employer both.
Looking forward to your revert

From India, Jaipur

Dear Parul, you have to get signed from Employee Form-11, if be below procedure you are following.. Regards, Kunal Kumar
From India, Mumbai

Dear aarthy,

Exemptions under the EPF Schemes

Provident Fund

An individual member getting Provident Fund benefits on par with or better than statutory provisions can apply for exemption in Form 1 under para 27.

Employers can apply for exemption in respect of a class of employees getting similar or better benefits than the statutory P.F. Scheme under P. 27A subject to the conditons governing grant of exemption.

The employer can seek exemption from P.F. Scheme for the entire establishment if the majority of the employees also consent for exemption, subject to certain conditions governing grant of exemption and certain formalities.

Pension Scheme

Employer can avail exemption for the establishment as a whole, with the consent of majority of employees, if an alternative pension scheme is formulated by the establishment with benefits either on par with or superior to the EPS 95 and subject to certification of the viability and long sustenance of the scheme by an independent qualified actuary and satisfying the other conditions prescribed governing the grant of exemptions.

There is no provision for exemption of individuals or for class of employees.

EDLI Scheme

The establishment can get exemption from the EDLI Scheme, if the employees therein are entitled for a benefit in the nature of insurance whether linked to their P.F. deposit or not and without paying any contributions.

If the above is Exemption has been got by your organisation no penalty will be there.

From India, Mumbai

See, this is in regular practice. But Employer should have PF establishment code if it is above the number of employees in strength. This is what as per my knowledge and we are following the same thing, but form 11 should be signed for each employee, who is not under PF.

From India, Mumbai

Dear Parul

The employees cannot on their own decide not to be covered by the Scheme or to be exempted from the scheme. They have to make an application to the P.F Authorities seeking exemption and the P.F authority will exempt them from P.F Act only when they are enjoying similar benefits under comny's scheme with more favourable terms and may grant such exemption with terms and conditions as detailed under Para 27-AA of the scheme.

if the employer has P.F scheme of his own of which the employees are memebers, he shall constitute a Board of trustees who shall provide statement of accounts to the memebers of such private fund.

Hi Arthy

the data provided is not sufficient. However employees whose pay exceeds Rs.6500/- p.m(basic+DA+retaining allowance + cash value of food concession, if any) at the time of joining need not be covered as memebers of the Fund unless they volunteer to make request to the P.F Commissioner to enroll them.


HR & Labour Law consultant

Chipinbiz Consultancy. Pvt.Ltd


Tel: 022-28324234

From India, Mumbai

Deal All Seniors,
I have a question here related to PF.. As per current scenario, no law says or defined the age of retirement. but as per Employee Pension Scheme an employee get exempted from Pension Scheme after 58 yrs of service..
Now my question is, if it gets out from pension scheme, what would be the % if PF share for these employees. Kindly advice, as we have few very senior employees in my company, who are about to cross this age limit.
Any post would be highly appreciated.
Kunal Kumar

From India, Mumbai

Yes if the basic salary of the employee is more then 6500/ pm & is not a member of the Pf or has withdrawn the pf amount take under taking in form 11 & you can exclude him form Pf liability.
From United States, Chicago

Dear Kunal,
1. All the 24% of basic pay can be put into EPF account.
2. He can be exempted from PF. since they are 58+yrs surely their basic salary will be more than 6,500/-
3. He can apply for Pension after attaining the age of 58.
How to get Pension
If you have attained the age of 50 years or more and
If you have completed a total service of 10 years or more and
If you are not getting any other EPF Pension
Then you have to apply in Form-10D at the EPF Office where you last worked through your last employer.
If you want to draw pension from a different place, you have to furnish appropriate Bank / Post Office address in the application form.
Pension is distributed through Post Offices or through some designated banks only (eg: Indian Bank, SBI, Indian Overseas Bank, HDFC Bank, ICICI)

From India, Mumbai
Hi ,
Good Morning Everyone...
I have one confusion Can anyone help me that i want double deduction of PF from my salary?
so in this case what would be suggested steps & concerned contact personnel in the company to have the solution of my query?
Vishal Chaturvedi

From India, Delhi

Dear Vishal,
you can contribute even 100% of your Basic salary to EPF. But certain company has the norms it will go upto 20% (12%+8% VPF contribution)
Since the company want to contribute the uniform PF for all employees they go for 12% on each side.
If you want you can speak with the HR dept. and increase the voluntary PF amount but company normally dont encourage it.
Note : Also you will have problem when you are withdrawing you PF since in big companies have consultant who calculate for 12% and normally they will drag the column for applying the formula for all below cells where your calculation will be mismatched. (This may be a case only and if they have calculated correctly then no issues). and Also if many people are willing the change can be done but for single person i dont think company will change the contribution.

From India, Mumbai
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