Srishreesree
Sr Generalist - Hr
Srinivas.2500
Hr Executive
Naagacharyd
Sr.hr-exe
+1 Other

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hi all,
i have query, we are having 100 employee in one of our site and previosly we are are deducting pf and esic,
but now we want to increase there salarie and remove from pf deduction,my query is it is leagal to remove employee from pf deduction by increasing his basic amnt 7000/-???
please reply me on priority

From India, Delhi
Dear Naagachary, Once you start deducting PF to the employee, you must continue to do so even if his basic pay increases. PF contribution is a must. Thanks & Regards, Srilakshmi Korukonda
From India, Hyderabad
thanku sri lakshmi garu.....its helps alot to me
if we want to stop there pf we can take them as new empl by issuing new emp code and everything new and taking sign on form 11 and form2, and there doj also changed.
please reply your valuable opinion..

From India, Delhi
Hi Naagachary,
That is not advisable. It effects your employees and also if there is any inspection, you'll unnecessarily fall into soup. It will have adverse affects. Its better to continue as usually.
Thanks & Regards,
Srilakshmi Korukonda

From India, Hyderabad
Kindly read Para 26A of the EPF Sheme, which clarifies the position. It is reproduced below for ready 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] "

Two things are clear from this para. (1) an employee who is already a member of the EPF will continue to be a member even if his pay crosses the monetary limit set by the Scheme. (2) however, the contribution shall be limited to the pay ceiling limit.

From India, Madras
Hi Naagacharyd, once employee is become a member of EPF/EPS, u can’t stop remittances till his resignation. But u cam make the payments upto ceiling amount of Rs. 6500/- Srinivas B
From India, Hyderabad
Anonymous
Dear Seniors,
I have a querry please advice once employee is become a member of EPF/EPS, u can't stop remittances till his resignation. But u cam make the payments upto ceiling amount of Rs. 6500/- it is clear now my question is if the same employee changes the company i.e. my basic is 6500 in previous company and my pf deduction 780 and I changed the company here my basic is 7000 in that case. are the new employer is restricted to deduct my pf or they simply took the ceiling limit on my case?
Thanks & Regards
Jeetu

From United States
If you a settled your EPF account after leaving the first company, you cannot become an EPF member now in the second company since your pay exceeds the pay ceiling prescribed for membership in the EPF Scheme.
From India, Madras
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