PF Not Deducted By Company Saying Basic Is More Than 6500 - CiteHR
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Apex Management
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Ashutosh Thakre
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Anilvsharma
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Hi, Company is refusing to deduct the PF saying the basic is above 6500. Is this decision depends on company whom to deduct PF or is it compulsory to deduct from every employee who wish for PF.
Hi, If your basic+DA is more than 6500 then its optional, and if your basic+DA is less than 6500 than its mandatory.
HI,
If you have not filled form 11 while joining the firm, then the company is liable to deduct PF atleast for the 12% of Rs. 6500/- i.e. Rs. 780/-. This will apply for your company if they have more than 20 employees employed with them.
Hope this helps you.

This is for newly joined person who is never a member of Provident Fund Organisation and filled the Form No.11 at the time of joining and his Basic and DA is Rs. 6500/- or more. Employer can not pay his share Rs. 780/- .
Dear Jandus ,
Pls refer the latest Circular issued by EPFO , dated 27th May'14 . It is clearly mentioned in the said circular that EPFO authorities will not insist to employers to mandatory deduct statutory contributions , if employees basic wages exceeds Rs.6500/-
Thanks,
Anil Sharma

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Dear VM,
Of course this is a pre mature query, still I'll raise this. What if the case when the ceiling raised from 6500/- to 15000 as and when notified. How about for the period from "discontinued" till recommences. We have to reopen/reactivate all the closed a/cs, and recover as arrears, add contributions thereof and continue? Or apply only prospectively from the date the revised cap is notified. How we are going to treat for the broken period ? The break in PF subs. & contribution, will it not affect the "continuous service" for pensionary benefits ? I'm sure MoF, MoL, MoL will look into these aspects while drafting the notification. What do you say ?

The Company has to continue the PF membership of an employee
who is already member in PF at the time of joining to duty.
The Employee has to furnish particulars in form-11 or to produce PF
slip to the employer for continuance of membership otherwise they will think that you are not a member/excluded employee. I think it is your failure.
Now you can request the employer to include in PF membership

Mr Kumar
I presume the situation you are anticipating may be this;
A fresh employee whose salary is now Rs 14500/- pm.As per the present law he is now excluded employee.Once the notification of ceiling of Rs 15000/- comes he will become a covered employee w .e.f from the date effect of the notification or any other effective date mentioned in the notification ..From that date his contribution shall be deducted and remitted w.e.f that date. There is no question of arrears.He shall be enrolled in EPF from that date.In the case of employees with salary above Rs 15000/- there will not be any change.

9961266966

Dear All,
In the prevailing situation and query, Januds, has not mentioned whether he was earlier contributor to the scheme or joined his first company.
In case he was a member to the scheme prior to joining current company and facts declared in form 11, the management is bound to continue him member at-least up to the ceiling limit of Rs.6500/- pm.
Otherwise, it is not mandatory to the company.
Have a good day.
P K Sharma

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Not only like this, what happens when employee was drawing < Rs.6500, was contributing earlier and salary increased above >6,500 during some time in the past, due to this EPF contribution either curtailed or discontinued as on date by the employer or employee. In such cases what happens when the expected notification is issued either effective prospectively or retrospectively ( I don't hope so) Some arrears would be involved ? ! NO ?!


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