Dear Sir/Madam,
Please clarify following.
(1) Company having EPF scheme. An employee give letter, requesting " I don't desire to join EPF and please donot cut my EPF from my salary.
Q. - Is it possible?
(2) EPF can be deduct from Basic Salary only? OR from Basic + D.A. ?
(3) From which month Celling to be raise to Rs.15000 ?

From India, Mumbai
Dear Sir/ Madam, Please inform present Basi Daily Wages and D.A. for engineering Unit in Mumbai. EPF to be deduct from Basic only OR combine with D.A. Rasik Parikh
From India, Mumbai

Dear Friends
PF has to be recovered from the Basic, Dearness Allowance and also from Variable DA.
If your organisation covered under PF you have to recover to all the employees. it is statutory. We can not leave anybody from this scheme. U tell to his employee it is a social benefit fro the employees and savings for future. Also Tell if you are leaving (not possible) you are saving only your contribution but if you continue, you can get your contribution as well as management contribution. Also you can get retirement pension. If any think happend before leaving your family will get monthly pention
It is HR duty to explain this welfare / benefits to our employees.
Now the PF ceiling is Rs.6500.00 only. PF authorities are planning to high to ceiling amount from Rs.6500.00 to 15000 in future. Not now

From India, Madras

Dear rnpkrp,

The Govt of India has started the PF scheme to provide a social security to the employees of various establishments.The scheme have hosts of benefits including old age pension. My colleague Sh Alphonse has rightly mentioned that if the establishment, where you are working, is covered and registered under the Employees' Provident Funds and Miscellaneous Provisions Act,1952, you have no choice unless you fall in the following exception categories:-

(i) If you are a new employee to your present company drawing a wage/ salary above Rs.6500/-and were not a member of Employees' Provident Funds Scheme earlier or if member, you have drawn your PF accumulations. In such case you will not be enrolled as member of the PF scheme.As per Para 33 of the Employees' Provident Funds Scheme,1952, upon joining a new establishment, you need to give a declaration in Form-2 and furnish information to your employer regarding your earlier company and PF account no., if any. In view of the definition,your basic salary shall be considered for the purpose of deduction of your PF contribution.

Regarding you second query unlike other enactments, the Employees' Provident Funds and Miscellaneous Provisions Act,1952 has defined the "basic wages" instead of wages, which includes all emoluments which are earned by an employee while on duty but does not include (i) cash value of any food concession; (ii) any dearness allowance (iii) house-rent allowance (iv) overtime allowance (v) bonus and (vi) commission or any other similar allowance payable to the employee or (vi) any presents made by the employer.

As regards,you last query, EPFO has forwarded a proposal to increase the salary limit and reduction of coverage threshold of twenty persons to ten to the Ministry of Labour for approval.

BS Kalsi

Member since Aug 2011

From India, Mumbai
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