Vipul Badhik
Hr Manager
Hrkpati
Sr.manager Hr & Legal
Dhrao
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Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
Abbasiti
Assistant Engineer, Indian Telephone Industries,
9871103011
Private Consultant On Labour Laws
Sundar_mpm
Man Management Functions
R.SOMASUNDARAM
Hr Manager
Neitzsche82
Human Resources
S. Krishnamoorthy
Director Of Private Ltd. Companies
Anandakg
Service
Kkadvocate
Labour Law
Kamlesh2510
Hr Manager
Pkmdnair
Self Employed
Vembhusuresh
Manager - Human Resources
+6 Others

Good morning all,
Recently, my friend has approached p.f office for the allotment of new P.F Code. As all his employees (More than 20) are getting salary more than 15000/-, he wish to get the exemption from pf contribution and same requested. But, the pf officer refused to do so and insisted to contribute the p.f.amount.
As he has pointed out the provision for the exemption, p.f officer persevere to contribute the pf.
Pl. clarify.
Dear Somasundaram,
From your posting, I understand that the above employees are already registered with EPF. Those registered with EPF has to continue till the end of service, even if their salary cross the ceiling limit. That is why the EPF authorities reject the request for exemption.
Abbas.P.S
Abbas’s comments are correct. The PFO is fully justified to reject the application made. S. Krishnamoorthy
Your query is not very clear. Please clarify
1. Whether you are deducting the PF for existing employees and paying the same to PF "ON ACCOUNT" basis;
2. Whether your employees are employed fresh or they were members earlier elsewhere?
2. Whether yours is a new establishment? or since how many yours you are operation?
3. When did you crossed the 20 employees limit to be applicable for PF.
I do agree to Joseph, Query is not looking clarified, please clarify the your query...
Dear Sundram,
I can per se that either you are asking a hypothetical question or your friend has fed you with a concocted story of visiting PF Office. I can bet that No PF Officer can say that employees who are getting salary more than 15000/- can be covered under PF Act.As far I know there is no such limit of 15000/- existing in PF Act.The same limit is fixed for ESI coverage.The limit of salary under PF Act is Rs. 6500/-. Section 26A of the Act provides that once a member is enrolled under the scheme,will continue all the times till he finally withdraws the PF amount, standing to his credit and not otherwise. Of course his contribution can be restricted to Rs.6500/-p.m.
BS Kalsi
Member since Aug 2011

Sir I donot know why the deparment fix the limit. It may reduce the condribution of 12% It may advice the employer to deduct the epf without ceiling
the PF department does not fix-up any law or rule, but it is the government does that job.
PF may get exempted for recovery from employees, with a valid reason to the Employees Provident Organization ( EPO) please see the Rules of EPFMP Act in the schedule wherein there are exemptions permitted.
Though the employees are crossing Rs. 6500 limit & they are new one,they have to fill up FROM NO11 & for mthis PF Registration no is mandatory.So in any case PF registration is require in the case as asked.
you just take separate code and submit nil contribution returns,pl check up break of 15000 so as to ensure no contribution as per wages definition
Dear 9871103011 & abbasiti, Good sharing. I have another doubt, a related one, with the salary break up & PF. can full salary be shown as basic?. pls comment
Dear Member,
In reference to your query, I wish to clarify that you are allowed to split the salary of the employees but ensure that PF contribution is granted on prevailing minimum wages declared by the state in which the establishment is situated. The EPFO has also issued an inter-department clarification on May 23, 2011 indicating that splitting of minimum wages for the purposes of PF contributions is not permissible.
In other words, salary for PF calculation should not be less than “minimum wages.”
BS Kalsi
Member since Aug 2011
Hi Mr. Josheph,
Thanks for your sharing.
The clarification are as follows for your queries.
1. Whether you are deducting the PF for existing employees and paying the same to PF "ON ACCOUNT" basis;
No. this Concern is new one. pf amount not deducted from existing employees.
2. Whether your employees are employed fresh or they were members earlier elsewhere?
No, they are fresh employees.
2. Whether yours is a new establishment? or since how many years you are operation?
Commencement of business : 01.04.2012
3. When did you crossed the 20 employees limit to be applicable for PF.[/QUOTE]
01.06.2013
Hi Mr.Kalsi, I conveyed about the salary drawn by the employees are more than 15000/- not about the pf limit or esi limit.
You can start deducting the PF of your employees from 01.06.2013 onwards since you have crossed the threshold of the minimum employees and are to be compulsorily covered under PF.
Apply for obtaining the code number to your local jurisdictional PF Office and till then you start deducting and pay on account till you get the code number.
All the best.
it is not clear whether all the 20 employees are new members or the existing PF members, if all the employees are new contributors we can submit nil returns, if their salary more than 6500/ pm (basic + DA) kindly check the allowences and salary structure
purushothama
hello
the deptt. can not force to deduct the contri. on the salary excess 6500 in a fresh case and also not refuse to issue a p.f.code no. on the strength of 20 or more, as per law u will deposit rs. 5 and 2 in respective accounts only. secondary if any employee was the member in previous firm and not withdraw the contr. then u have to bound to deduct the p.f up to salry of rs. 6500.
hope it will clear the position
thanks
if EPF is not applicable in X Company and someone comes into company whose PF was deducting in last firm and if is asking to cut the pf then what to do ? please not that X company don't have the license of PF..
please answer it to me, I have confusion in this.
Dear Kkadvocate,
If I am the department, I will force to deduct the contribution even salary exceeds Rs. 6500/- to fresh employee.
You are liable not deduct the PF in respect of excluded employees within the meaning under Para 2(f) of scheme. The onus lies on you to convince me that the employees are excluded employees.
If I am an employee of you, I am fresh and I opt for PF deduction even my salary is above Rs. 6500/-,in this case you have no option but cover me under PF.
If I am a member of PF in earlier employment, you have no choice but to deduct my PF even I give you in writing that I do not want PF.
I once again repeat, your decision to cover me in PF or not, you have to justify. Onus is yours.
The answer to queriest of this thread may be this, I feel. How he made his representation, that we do not know. If his representation is right and eventhough his case is rejected, he has a right to go for appeal.
Dear friends
What about those cases where the govt has not fixed the minimum wages?.There are certain occupations and designations for which MW has not been fixed and the Government Order do not have a rider that if in the case of a scheduled employment or a job for which MW has not been fixed the minimum wages fixed for similar job shall be paid as MW.
Can lower wages be shown for EPF in such cases ?
Varghese Mathew
Dear Somasundaram,
Once an organization starts employing 20 or more need to be covered under EPF &MP Act, employer shall submit coverage proposal giving the list of employees on rolls and the EPF organization shall allot the code number.
After the code number is allotted the pf contributions are remitted towards the employees eligible for pf and need not pay pf for all the employees on rolls.
Regards
PRATAP
Dear Sundaram,
You have cleared that once Rs. 15000/- limit crosed no need to go for ESI. At the same time once Rs. 6,500/- is crossed no need to go for PF. The
But in case of PF , continuty is to be followed whereas in case of ESI, Medical allowance or other medical aid will take place. For a new employee whose salary is fixed above Rs. 6,500/- , though the company is registered with PF is it necessary to contribute PF ?
Hrkpati,
Dear Sundaram
ESIC is not applicable for 15000
PF is not applicable for more than 6500 is basic but once it is already deducting than it is compulsory to deduct but ceiling limit is 6500. in case of a person whose PF was deducting in last company but if he join a new company where PF is not applicable than form 11 is compulsory and a statement is required from that person + permission from PF Department..
if anyone can clarify it more..
as per my knowledge, this is the right......
As per the PF rules if an employee already a member of pf then the new company has to make PF contribtion for Rs 6500/- that is Rs 780/- pm. If is he is not a member then he will be exempted.
Dear Mr. Soma,
As per Employees Provident fund act below mentioned conditions are applicable:-
1. In case a new employee's Basic salary is more than Rs. 6500/-
A. If he is an existing member of Provident fund, PF deduction is compulsory.
B. If he has already withdrawn his provident fund and not a member of Provident fund - we have to get the form no. 11 filled (find the attachment) from the employee and then PF deduction can be avoidable.

2. In case a new employee's Basic salary is less than Rs. 6500/- Provident fund deduction is compulsory.
Please note:-
Once an employee is become a member of Provident fund, Provident fund deduction is compulsory even if his Basic salary crosses the limit of Rs. 6500/- after increment or promotion.
dear mr. kamlesh,
you have written that the point B as follows:-
B. If he has already withdrawn his provident fund and not a member of Provident fund - we have to get the form no. 11 filled (find the attachment) from the employee and then PF deduction can be avoidable.
Further you have written as follows:-
Once an employee is become a member of Provident fund, Provident fund deduction is compulsory even if his Basic salary crosses the limit of Rs. 6500/- after increment or promotion.
please clarify what's the rule. thanks.
attribution https://www.citehr.com/466542-exempt...#ixzz2ad9XXl4z
attribution https://www.citehr.com/466542-exempt...#ixzz2ad9DnrYf
Hi,
I totally agree with sundar, once an employee's PF is deducted it has to be continued, it is not like ESI.
Regards,
Everyjobs Team
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This answer is not relevant to my querry. I need what are all the allowances exempted for calculating pf or pf wages. Kindly post or locate the answer for this query. V.Suresh
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