Ravi5554
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Apex Management
Labour Laws Consultants
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Ashutosh Thakre
Hr Professional
Anilvsharma
Manager- Hr Compliance
Sbmishra1979
Deputy Manager Hr
Sandeep.oas
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Prachi Tiwari
Housewife
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Thread Started by #januds

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.
23rd June 2014 From India, Mumbai
Hi, If your basic+DA is more than 6500 then its optional, and if your basic+DA is less than 6500 than its mandatory.
23rd June 2014 From India, Mumbai
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.
23rd June 2014 From India, Mumbai
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/- .
24th June 2014 From India, Mumbai
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
24th June 2014 From India, Pune
------------------
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 ?
24th June 2014 From India, Bangalore
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
24th June 2014 From India, Hyderabad
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
24th June 2014 From India, Thiruvananthapuram
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
25th June 2014 From India, Delhi
--------------------------
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 ?!
26th June 2014 From India, Bangalore
Such orders will not be retrospective.I do not understand how contribution can be discontinued in the case of a member when his salary is increased from < Rs 6500/- to > Rs 6500/.Contribution cannot be stopped when salary increased above Rs 6500/-He will continue to contribute but his contribution is limited to Rs 780/.

09961266966
26th June 2014 From India, Thiruvananthapuram
The Notification for revision from 6500 to 15000 is still not released. This will take time and the same cannot be in prorata.
28th June 2014 From India, Mumbai
Dear All,
This has been discussed many times in this forum. The employee who is the member of EPF can never be opt just because of the salary rise ( i.e. above Rs.6500/- ). He/She can continue their PF deductions above the limit also but for PF calculation Employer can consider only the limit i.e.Rs.6500/-.
In second case if an employee joined on the salary which is above the PF deduction limit then he will not be eligible for any EPF deduction. In this case if employee want to deduct his EPF contribution then Employer has no choice but to deduct both parts i.e.12% + 12% = 24% but here you can see that Employer is bearing the Administration Cost i.e. 1.61% for this process.
Regds
Santosh Khamitkar
Sr.Manager-HR/Admin
28th June 2014 From India, Pune
This is just a bill which you can say private bill from one of the member submitted to the parliament. If it has been approved the it is called as govt. bill as per my knowledge. Then through Notification it will be circulated for the rest.
Regds
Santosh Khamitkar
28th June 2014 From India, Pune
Dear Sir,
I have one more query regarding this post, suppose an employee joins an organisation which is not registered for PF account with EPFO or has only 8 employees on its roll and the new joined employee was member of PF. In this situation what is the liability of the company? Which option can a company take in this situation:
1. To get registered for with EPFO and deduct the PF of the employee?
2. To get the form 11 filled up by the emplyee and not to deduct any PF?
Which option should a company choose for this case?
Regards,
30th June 2014 From India, Bangalore
Wait for having 20 employees.You need to register only after that. Varghese Mathew 9961266966
30th June 2014 From India, Thiruvananthapuram
If you have more than Rs6500 basic+DA then
Condition 1) If your PF deducted in past rather any other company, you have to give detail to your company in Form No 2. after that your company has to bound deduct you pf amount and deposit it to respective dept with his contirubtion at least on 6500.
Condition 2) If your Pf not deducted in past history or you were not member of any pension or PF dept related, then we can not forcefully say your company for PF deduction. you can give only in request way.
Summry in legal way: If you give nill in Form no 2 and basic+DA is more than 6500 than company are not bound to pay his contirubtion.
30th June 2014 From India, Rajkot
Sorry its not Form no 2, It is Form no 11.
-----------
If you have more than Rs6500 basic+DA then
Condition 1) If your PF deducted in past rather any other company, you have to give detail to your company in Form No 11. after that your company has to bound deduct you pf amount and deposit it to respective dept with his contirubtion at least on 6500.
Condition 2) If your Pf not deducted in past history or you were not member of any pension or PF dept related, then we can not forcefully say your company for PF deduction. you can give only in request way.
Summry in legal way: If you give nill in Form no 11 and basic+DA is more than 6500 than company are not bound to pay his contirubtion.
30th June 2014 From India, Rajkot
Dear Pawan Ji,
Thanks for your reply, but my question is, if the person was having salary less than Rs. 6500/- and he was the member of EPF in earlier company, then in his joining to our company, are we bound to deduct and deposit his PF, even if my company has not registered itself for EPF because it has only 8 employees till date. According to your answer, I will have to deduct and pay his PF, then in this condition will I have to get my company registered first?
Please reply.
Regards,
Sandeep
1st July 2014 From India, Bangalore
Sandeep When the Act itself is not applicable to your organization why do you bother? Varghese Mathew
1st July 2014 From India, Thiruvananthapuram
If your orgnization never cross 20 people since start, then PF not applicable. So don’t worry. You are in Exempted Establishment company. tell worker that PF not applicable in your company.
1st July 2014 From India, Rajkot
---------------------
Dear friends,
Here is a typical e.g. that an employee joined new here was a member of EPF in his previous co. Could he be denied EPF contribution in the present employment just because it's not within the ambit of EPF Act ? Is he not entitled to continue his EPF A/c. and can remit his own if not the employer's contribution (obviously may not arise). Any clarification on this pl.?
2nd July 2014 From India, Bangalore
Hi All,
Just because of the empoyee's Basic is above 6500/-, the management cannot be afford to avoid to pay the contributions either employee's or employer's, please remember that an employee has option not to contribute to epf at the beginning of his professional career. As and when his basic salary exceeds 6500/- in the beginning of his profession he can go for that option by providing the same in Form.11
How ever any organization is not ready to provide such option for it's employees.
Thanks and Regards
Ravichandra Paanem
3rd July 2014 From India, Hyderabad
if employee basic more than 6500, it is not mandatory for deduction pf. it depends on employee bittu patra 8271441630
8th July 2014 From India, Kolkata
Dear Sir, I am still awaiting a suitable reply to my quoted question. Regards, Sandeep
9th July 2014 From India, Bangalore
Do you want to withdraw PF without employer signature, your company is not ready to attest your form call me 09937894045 or mail me sbmishra1979gmail
9th July 2014 From India, Gwalior
Dear BITU
Your understanding that 'if the wages are more than Rs6500/- pm of an employee the PF is optional' is wrong.It is true in the case of a person whose first salary is above 6500/- If he was already a member of EPF he has no option but to continue in EPF.
Varghese Mathew
09961266966
10th July 2014 From India, Thiruvananthapuram
-----
Here, the missing link is, what about an existing PF member (employee 'X') of a regd.employer switching to a new employer (B) who has no EPF registration as they are < 10/20 employees. The question is just in order to continue the subscription & contribution of an existing member (X)should the new employer(B) go for EPF Registration and contribute only for this 'X' member ? Whether his salary is <> of 6500 is secondary.
10th July 2014 From India, Bangalore
No need to continue to contribute for him as the new employer is not bound by the EPF Act ,The employee can withdraw his EPF. Varghese Mathew
10th July 2014 From India, Thiruvananthapuram
Hi Everybody,

Budget: Labour Law Update

The Finance Minister has approved a host of reforms under Labour Laws, more specifically with regards to Provident Fund as follows.

PF Coverage Limit Raised from Rs.6,500 to Rs.15,000. As a result of this revision, employees drawing Wages between Rs.6,500 to Rs. 15,000 will be covered under the PF Scheme and the maximum Employee Share of PF per month will be

Rs.1,800 per month (12% of Rs.15,000) instead of Rs.780 per month as of today.In other words employees drawing between Rs. 6,500 to Rs. 15,000 earlier will not be eligible to be excluded under Para 26 of the EPF Scheme. As a result of this amendment, 50 lakh new workers will come under the ambit of the Provident Fund Scheme

Minimum Monthly Pension Amount raised to Rs.1,000.

This will directly benefit the 28lakh pensioners who get less than this amount at present

Employees' Provident Fund Organisation (EPFO) will launch the "Uniform Account Number"

(UAN) Service for contributing members. This will facilitate portability of Provident Fund accounts. This will simplify the transfer of PF corpus of employees when they switch from one employment to another. Please note that these are budget announcements and the changes will come into effect once the Notification to that effect is issued by the EPFO. As a result, the effective date of the proposed changes is not known as on date.

Regards

Kishor
11th July 2014 From India, Pune
All the above were decisions of UPA Govt.But they did not issued the required Gazette notification.Now also these decisions will be on paper only, unless the GO come in the gazette. Varghese Mathew
11th July 2014 From India, Thiruvananthapuram
Subject - Re: PF not deducted by company saying basic is more than 6500 Mr kunar Most of employee go for PF for future prospects, PF should be deducted even if basic is less than 6500.
12th July 2014 From India, Mumbai
Read about top ten things about EPF - InvestmentYogi Ten Must Know facts about EPF -
14th July 2014 From India, Hyderabad
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