Ankita1001
Sr. Hr Executive @ Polymerupdate
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Rdkanna
Working As A Manager - Hr
+4 Others

Thread Started by #mohitejitendra

can employee having basic more than 6500 stop the contribution towards the provident fund with consent of employer.
29th January 2013 From India, New Delhi
Dear Mohite Jitendra, Those who registered with EPF has to continue in PF till end of service. Consent of employee and employer has no role to discontinue. Abbas.P.S
30th January 2013 From India, Bangalore
Dear sir,
we cant stop the pf contribution form either sides ( employer, employee)
But if new joined employee gets more than 6500 as basic we take sign on form 11 than we are exempted such employees from pf paying.
2) if the employee is already member of pf , we should pay the contribution to EPFO.
Thanks & regards
Bejji Guruvishnu
30th January 2013 From India, Visakhapatnam
The employee & employer cannot stop contribution, but you can limit the same to Rs 780/pm. VARGHESE MATHEW 9961266966
30th January 2013 From India, Thiruvananthapuram
Sir,
1) If the basic pay is more than 6500, the employer need not contribute Provident Fund towards the concerned employee.
2) At their own interest, the employer also can voluntire & they can contribute PF to the employee who is drawing more than 6500 as basic.
3) If the employee is not willing to contribute since the basic is above 6500, as per your statement after getting consent from the employer he can stop contribution towards PF.
4) According to my knowledge, i heard if an employee contributing PF for 10 years of continuous service, he / she will be eligible for reduced pension at the age of 50 years and full pension at the age of 58 yrs. So why the employee should stop PF contribution?
R.Dhamodhara kannan [RDK]
31st January 2013 From India, Tiruchchirappalli
As explained in majority of posts above the contribution cannot be stopped. The relevant rule provision is in Para 26A of the EPF Scheme. It is reproduced below for reference:

26A. Retention of membership

(1) A member of the Fund shall continue to be member until he withdraws

under paragraph 69 the amount standing to his credit in the Fund or is

covered by a notification of exemption under section 17 of the Act or an

order of exemption under paragraph 27 or paragraph 27A.

Explanation: In the case of claim for refund by a member under subparagraph (2) of paragraph 69, the membership of the fund shall be deemed

to have been terminated from the date the payment is authorised to him by

the authority specified in this behalf by Commissioner irrespective of the date

of claim.



(2) Every member employed as an employee other than an excluded

employee, in a factory or other establishment to which this Scheme applies,

shall contribute to the Fund, and the contribution shall be payable to the

Fund in respect of him by the employer. Such contribution shall be in

accordance with the rate specified in paragraph 29:

Provided that subject to the provisions contained in sub-paragraph (6) of

paragraph 26 and [in paragraph 27], or sub-paragraph (1) of paragraph 27-

A, where the monthly pay of such a member exceeds [six thousand and five

hundred rupees] the contribution payable by him, and in respect of him by

the employer, shall be limited to the amounts payable on a monthly pay of

[six thousand and five hundred rupees] including [dearness allowance,

retaining allowance (if any) and] cash value of food concession]
31st January 2013 From India, Madras
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™